Annual Report 2004 - Flughafen München

Annual Report
2004
Annual Report 2004
Introduction
Foreword
Chronicle
Executive board
Management team
3
4
6
8
The airport in figures
Key figures
Ten-year overview
Munich in comparison
12
12
13
Flughafen München GmbH
in 2004
General development
Passenger traffic
Air freight and air mail
Business performance
M-Power: Strategy development and
earnings growth
Non-aviation business
Personnel
Subsidiaries and associated companies
Environmental protection
Corporate communications
Marketing
Regional relations
14
18
20
22
24
28
32
36
40
44
46
48
2004 year-end accounts
Management's review
Annex
Supervisory board's report
Balance sheet
Income statement
51
55
63
64
66
2
Foreword
In 2004, Munich Airport continued its success
story, achieving exceptional growth in all key
traffic sectors. Financially, the airport not just
met but actually exceeded its targets for the
year.
Our strong business performance was partly
due to the rapid growth in traffic, but it was also
down to the success of a number of new initiatives launched as part of M-Power, a long-term
project initiated with the aim of realigning the
FMG Group strategically and promoting earnings growth.
With 26.8 million passengers in 2004, Munich
Airport exceeded the total number of movements registered in the prior year by an amazing 2.6 million – an increase of almost 11 percent, the greatest ever recorded in the history of
the airport. With this surge in growth, Munich
was the big winner among Europe’s ten busiest
passenger airports.
We also saw the number of aircraft movements
reach a new all-time high, with takeoffs and
landings in the commercial sector rising 8 percent to more than 370,000.
For the most part, this unprecedented growth
was the outcome of continued expansion in
hub-and-spoke operations at Munich Airport,
and, clearly, our strategy of systematically and
continuously growing the airport into a leading
European hub is beginning to pay a dividend.
With passenger numbers up 12.4 percent, Terminal 2 produced a strong result, but Terminal 1
also performed well, achieving passenger
growth of 8 percent.
In spite of our current successes, it is important
that we do not lose sight of the enormous challenges that lie ahead. In recent years, a rapid
wave of change has swept through international
aviation and has long since hit the airports. It is
crucial to our existence that we mount an
appropriate response, and this is what we have
done with our ambitious M-Power project.
Factors like the liberalization of aviation markets, the privatization of airlines and airports,
the formation of global airline alliances, and the
upgrowth in low-cost traffic are all forcing
Munich Airport to modernize and reinvent itself
in order to remain a strong contender in the
fiercely competitive global civil aviation arena.
Through our M-Power project, we have identified more than 400 separate initiatives that can
help us to bring about a sustained improvement
in our earnings. FMG has also restructured
since the end of 2004. The company’s activities
have now been organized into strategic business divisions, service and support divisions,
and central divisions. We have five business
divisions which are responsible for the FMG
Group’s core business operations.
Our successful strategic realignment, the airport’s continued rapid rate of growth, the
immense dedication of our employees, and the
backing we have from our shareholders all
mean that we are in an excellent position to
achieve our primary goal: of becoming the most
attractive and efficient hub airport in Europe by
2010. In 2004, we took a major step forward
along the road to achieving that.
Dr. Michael Kerkloh
President and CEO,
Earnings before interest and taxes were up 5
percent year on year – more than we had targeted in our business plan.
Flughafen München GmbH
3
Chronicle
January 9, 2004
Flughafen München GmbH’s (FMG) two common
user lounges in Munich Airport’s Terminal 1 now
adjoin with the departure lounges to provide passengers with quicker and more direct access to
the aircraft.
March 11, 2004
A representative opinion poll commissioned by
Flughafen München GmbH and conducted by
Infratest is published. The poll shows that 88 percent of people surveyed in the airport’s region
like living there; 82 percent of the local population rate the economic situation where they live
as “good” or “very good”. Eighty-eight percent
stated that having the airport nearby has been
“very positive” or “mostly positive” for their local
area. Most airport neighbors feel that the region
has benefited from the presence of the airport,
primarily economically but also in terms of its
appeal as a place to live. Aspects seen as negative by the majority are the environmental and
noise impact and the changes in land prices and
rents.
March 28, 2004
The number of far-away holiday destinations
served by nonstop flights in the summer season
increases by 40 percent. Deutsche Lufthansa in
particular extends its offering of intercontinental
services substantially. The carrier’s new nonstop
destinations include Charlotte, with seven frequencies a week, and Delhi, Teheran, Vancouver
and Beijing, each with three frequencies a week.
Lufthansa also operates long-haul services to
Hong Kong, Shanghai and Canton. Attractive travel destinations served by other carriers include
Atlanta (Delta Air Lines), Doha (Qatar Airways),
Bangkok (Thai Airways), Miami (LTU), and Toronto
(Air Transat). Airlines had coordinated around
240,000 aircraft movements for the period from
March 28 to October 30, 2004 – 8 percent more
than a year earlier.
April 7, 2004
Munich Airport gains certification by Bavaria’s
Ministry of Economic Affairs, Infrastructure, Transport and Technology to become the first airport in
Europe to be officially approved to handle the
Airbus A 380. Munich meets the approval requirements specified by the International Civil Aviation
Organization (ICAO). The criteria include the
length and width of the runways, the width of the
taxiways, curve radii, and the load bearing capacity of the concrete paving. In addition, Terminal 2
has two super-size stands large enough to accommodate the Airbus A 380 jet with its wingspan of
79.8 meters and capacity for up to 800 passengers.
April 30, 2004
Flughafen München GmbH receives the ”Arbeit
plus 2004” award from the Protestant Church in
Germany. Since 1999, the Church has given this
award to selected companies in recognition of
their “outstanding labor policy” and their efforts
to create and secure jobs. The award jury, which
based its decision on surveys conducted by the
independent Marburg-based Institute for Economic Research, emphasized FMG’s broad training and
education offering, extensive health maintenance
programs, and collaborative projects with other
organizations.
June 23, 2004
FMG’s technical departments and fire service
achieve certification to the international DIN EN
ISO 9001-2000 standard. The company’s traffic
and operations planning and internal control
departments also successfully obtained accreditation, which means that the entire traffic operations and technology division now has a quality
assurance system in place. Ground services, terminal and passenger services, traffic services,
traffic management, and FMG subsidiaries
Cargogate and EFM - Gesellschaft für Enteisen
und Flugzeugschleppen am Flughafen München
mbH had already been audited and certified to
the international standard in 1996 and 1997.
Computersimulation
4
June 29, 2004
Since its inauguration a year earlier, Terminal 2
had been used by roughly 16.4 million passengers, and had handled some 240,000 flights. Also,
during its first year in operation, 10 million items
of luggage had passed through the terminal’s
baggage transportation system. Terminal 2, which
is used exclusively by Lufthansa, the Star Alliance, and LH partner companies, offers passengers a choice of 2,300 departures a week to 96
destinations in 36 countries, including 17 cities in
Asia, the Americas, Africa, and the Middle East.
Lufthansa now operates more European flights
from Munich than from Frankfurt.
July 7, 2004
The results of the most recent workplace survey
are published. At December 31, 2003, 23,320 people were employed at Munich Airport – over 3,000
(almost 16 percent) more than when the last survey was conducted in 2000. Over the same period, FMG’s workforce had grown by 20 percent,
from 4,045 to 4,891. Including subsidiaries and
associated companies, the FGM Group employs
7,248 people at the airport – over 1,100 more than
at the time of the 2000 survey. The airport operator is the largest employer at the facility and has
also created the most new jobs. Since 2000, the
number of companies located at the airport has
risen from 471 to 531.
August 26, 2004
FMG is one of the companies honored with an
Ökoprofit award 2003/2004 by the city of Munich.
Ökoprofit is an ecological project set up to promote the use of integrated environmental technology among Munich businesses as a means of
improving environmental performance. FMG
received the award in recognition of an extensive
package of measures it had introduced to improve its industrial environmental protection. At
the same time, these measures marked an initial
step on the road toward introduction of an EMAScertified environmental management system at
Munich Airport.
October 2004
In response to the exceptionally rapid growth in
the airport’s cargo business, Cargogate Flughafen
München GmbH, FMG’s specialist cargo handling
subsidiary, begins extending its facilities with the
addition of a 4,400-square-meter hall at the
eastern end of the cargo area. The company has
planned to created a 34-meter-high, 132-meterlong concrete structure that will house two separate complexes. Once the building is completed
in September 2005, FedEx will use the northern
half, and express carriers DHL and UPS will use
the southern half to handle goods shipments.
October 31, 2004
Airlines had coordinated more than 155,000 takeoffs and landings for the winter season at Munich
Airport – 9 percent more than for the 2003/2004
winter timetable. Deutsche Lufthansa begins operating a new nonstop service to Bangkok. The
daily service continues to Kuala Lumpur in
Malaysia four times a week and to Ho Chi Minh
City in Vietnam three times a week. Lufthansa
also begins offering a daily service to Dubai.
Other Lufthansa destinations include Miami, Los
Angeles and San Francisco. LTU, too, begins serving a new long-haul destination once a week –
Fort Myers in Florida.
5
Executive board
Dr. Michael Kerkloh
President and Chief Executive Officer
Personnel Industrial Relations Director
Walter Vill
Vice President and Chief Financial Officer
Peter Trautmann
Chief Operating Officer
6
7
Management team
8
9
Thomas Ross
Director
Senior Vice President Legal
Affairs and Security
Dr. Brigitte Englert
Director
Corporate Representative for
Government Affairs
The Legal Affairs and Security
division actively manages and
controls the company’s legal
affairs, and protects the Group
against legal risks and security
deficits. The division also ensures that the company’s assets
are protected and insured costefficiently as a safeguard
against damage or loss. The
less attention the division
attracts, the more effectively it
is doing its job.
The Corporate Representative
for Government Affairs, a new
post created within FMG, is
responsible for liaising with
government agencies and official bodies with the goal of
advancing political, economic
and legal frameworks to serve
the Group’s interests.
Thomas Scheidler
Director
Senior Vice President Human
Resources
Josef-Heinz Loichinger
Senior Vice President Finance
and Controlling
The Finance and Controlling
division is responsible for
commercial oversight at FMG.
The division, which comprises
units specialized in buying and
the award of contracts,
accounting and tax, financing
and cash management, and
group planning and internal
control, ensures sound financial management and transparency Group-wide.
Strategically and operationally,
the Human Resources division
pursues a modern, performance-oriented and humancentric style of personnel
management. Our task is to
ensure that we have the skilled
and dedicated people we need
to become the most attractive
and efficient hub airport in
Europe.
Florian Fischer
Director
Senior Vice President Corporate
Development and Environment
Dr. Karl Heinz Schwarzmeier
Director
Senior Vice President Terminal 2
Siegfried Pasler
Senior Vice President Corporate
Services
The Corporate Services division
is responsible for personnel
management and administration, continued education and
training, payment management, and other services at
Group level. The division also
develops tailored solutions in
these areas to meet the needs
of FMG business, service and
corporate divisions and external customers.
10
In partnership with Deutsche
Lufthansa AG, the Terminal 2
division is responsible for operating and developing Terminal 2
as a passenger handling facility.
The division is also tasked with
managing the growth partnership between FMG and Lufthansa.
Gerhard Wirth
Senior Vice President Security
The Security division is tasked
with fulfilling the airport operating company’s statutory obligations regarding the protection of the airport and its facilities. These obligations are coordinated with the aviation security authorities and are laid
down in the airport’s aviation
security plan. The division also
implements a range of voluntary operational security measures.
The Corporate Development
and Environment division analyzes the influence of constantly changing political and economic factors on the company.
The division’s assessments and
findings are incorporated into
master plans, general expansion plans and environmental
strategies designed to safeguard the company’s future by
focusing on sustainability,
balance, and functionality.
Rainer Beeck
Senior Vice President Corporate
Real Estate Management and
Development
Wolfgang Hammerstädt
Director
Senior Vice President Ground
Handling
The Corporate Real Estate
Management and Development
division is responsible for
managing FMG’s complex and
heterogeneous real estate portfolio in a demand- and profitdriven way. With its futurefocused building and real
estate utilization strategies,
Munich Airport has created a
unique position for itself in
Europe’s aviation arena. To
sustain our premium position,
we focus on ensuring that the
airport provides not just optimum traffic handling but also a
diversified service offering.
The Ground Handling division
offers round-the-clock services
and operates as a fully integral
part of a smoothly functioning
logistical process.
Gertrud Seidenspinner
Senior Vice President Corporate
Strategy, Projectmanagement
and M-Power
Walter Vill
FMG Vice President
Interim head of Retail and
Services
With its operating companies
and organizational units, the
Retail and Services division
provides rich retail, hospitality
and service offerings. We deliver high-quality products and
services – mixed with Munich’s
distinctive local flair – designed
to meet the needs of passengers, businesspeople, visitors
and airport employees.
We support the Group by identifying and addressing strategically relevant issues. We also
manage, oversee and coordinate the implementation of the
M-Power strategy development
and earnings growth project.
Michael Zaddach
Senior Vice President
Information Technology
The Information Technology
division creates information
systems and provides the airport with the support it needs
to ensure that its processes are
efficient and effective. Our
systems and services are
modern and cost-efficient, and
they provide the stable foundation required to safeguard airport operations and future
growth.
Andreas von Puttkamer
Director
Senior Vice President Aviation
Johann Bernhard
Director
Senior Vice President
Engineering and Facilities
The Engineering and Facilities
division unites extensive technical competency with a commitment to exceptional service.
Its tasks are to ensure safe, reliable and cost-effective operations and to sustain the airport’s onward development.
The Aviation division is responsible for developing and managing traffic operations at
Munich Airport.
Hans-Joachim Bues
Senior Vice President Corporate
Communications
Corporate Communications’
task is to speak – and listen –
on behalf of FMG. Through strategic communications and reputation management initiatives,
we communicate the company’s
goals and interests to employees, the media and the public at
large and ensure that information on societally relevant opinion, currents and trends is
made available within the company.
11
The airport in figures
Air traffic
2004
2003
2004 / 2003
Passenger movements (total)
26,835,231
24,214,250
+ 10.8 %
– Commercial traffic
26,814,505
24,193,304
+ 10.8 %
– Scheduled and charter traffic
26,789,187
24,168,967
+ 10.8 %
Aircraft movements (total)
383,110
355,602
+ 7.7 %
– Commercial traffic
370,534
343,027
+ 8.0 %
– Scheduled and charter traffic
359,568
332,991
+ 8.0 %
Air freight handled (total, t)
309,828
246,585
+ 25.6 %
– Carried by air (t)
170,828
140,585
+ 21.5 %
– Carried by truck (t)
139,000
106,000
+ 31.1 %
21,339
21,960
- 2.8 %
10,654,311
9,545,117
+ 10.6 %
Air mail handled (t)
Maximum takeoff mass (MTOM)
in commercial and non-commercial
traffic (t)
Net sales
2004
2003
2004 / 2003
(€ million)
628.4
593.3
+ 5.9 %
Personnel
2004
2003
2004 / 2003
Personnel costs
(€ million)
220.9
220.6
+ 0.1 %
Employees
(at Dec. 31, 2004)
4,946
4,891
+ 1.1 %
Average employee
capacity
4,372
4,253
+ 2.8 %
Ten-year overview
commercial traffic * (thousand)
675
27
370
650
26
30 0
280
250
240
230
30 0
12
220
275
11
210
250
10
20 0
225
9
12
03 04
253,109
260
262,446
270
343,027
330,888
280,067
290
13
95 96 97 98 99 0 0 01 02
302,412
310
321,756
24.19
21.28
16
14
320
19.32
17
15
23.65
555.5
18
330
218,154
325
19
340
199,114
350
361.2
375
20
388.3
40 0
21
17.89
425
22
15.69
442.9
450
455.6
475
23
14.87
50 0
494.0
525
529.8
550
557.5
575
360
350
24
23.16
593.3
60 0
25
23.13
625
370,534
Aircraft movements
commercial traffic (million)
26.81
Passengers (in + out + transit)
(€ million)
628.4
Sales
190
95 96 97 98 99 0 0 01 02
03 04
95 96 97 98 99 0 0 01 02 03 04
* excluding ferry flights
Munich in comparison
Traffic figures for German airports in 2004
Passengers
(in + out + transit)
(commercial sector)
Aircraft
movements
Air freight (t)
Air mail (t)
Frankfurt
51,098,271
469,187
1,723,791
115,295
Munich
26,814,505
370,534
170,828
21,339
Düsseldorf
15,256,506
189,005
55,955
101
Berlin (total)
14,871,640
197,613
25,140
11,273
Hamburg
9,893,700
129,779
23,821
12,654
Stuttgart
8,821,533
136,927
17,401
8,644
Cologne / Bonn
8,332,961
136,927
605,069
10,392
Hanover
5,249,169
74,251
5,332
10,432
Nuremberg
3,648,580
56,886
10,714
692
Hahn
2,751,585
24,586
66,096
0
Leipzig / Halle
2,026,550
31,207
5,551
4,597
Bremen
1,674,987
34,149
891
14
Dresden
1,620,781
28,080
411
0
Münster / Osnabrück
1,488,661
28,489
549
0
Dortmund
1,179,028
25,743
75
0
Erfurt
526,241
11,008
4,011
0
Saarbrücken
459,853
10,563
43
0
155,714,551
1,954,934
2,715,678
195,433
Total
Source: German Airports Association (ADV)
Passenger figures for Europe’s top ten airports in 2004 (commercial sector)
Ranking
Passengers (million)
2004 / 2003
London Heathrow
1
67.3
+ 6.1 %
Frankfurt / Main
2
51.1
+ 5.7 %
Paris Charles de Gaulle
3
50.9
+ 5.5 %
Amsterdam
4
42.5
+ 6.5 %
Madrid
5
38.5
+ 7.5 %
London Gatwick
6
31.4
+ 4.8 %
Rome Fiumicino
7
28.1
+ 7.0 %
Munich
8
26.8
+ 10.8 %
Barcelona
9
24.5
+ 7.9 %
Paris Orly
10
24.0
+ 7.0 %
Source: Airports Council International (ACI)
Status: March 2005
13
General development
Record numbers of passengers and aircraft
With more than 26.8 million passenger movements in 2004, Munich Airport bettered its prioryear figures by an impressive 2.6 million. At
almost 11 percent, growth was greater than at
any other airport among the ten busiest in
Europe, enabling Munich to firmly underscore its
number-eight ranking as well as narrow the gap
slightly on the table leaders. Munich also registered a record number of aircraft movements.
With more than 370,000 takeoffs and landings
by commercial aircraft, traffic increased by 8 percent.
14
Hub traffic drives growth
This gratifying trend was driven more than anything by the continued expansion of hub-andspoke operations at Munich Airport, with transfer passengers accounting for 33 percent of all
passenger movements, up from 31 percent in
2003.
The joint strategy pursued by Flughafen München GmbH and Deutsche Lufthansa AG – to
develop Munich Airport systematically and continuously into a leading European aviation hub –
has paid off. In particular, the airport’s new
Terminal 2, inaugurated in June 2003 and designed specifically to handle transfer traffic, has
created the right operating conditions to enable
Lufthansa and its partners to continue expanding Munich Airport into a highly efficient aviation
hub serving a worldwide route network.
Solid growth on intercontinental routes reflects
Munich’s growing importance as a gateway:
Whereas the number of aircraft movements as a
whole rose more than 27 percent, the passenger
volume on long-haul routes grew by more than
40 percent thanks to new intercontinental destinations being served by Lufthansa and its partner carriers, and to the long-haul services offered by airlines operating out of Terminal 1.
More efficient use of Terminal 1
In contrast to Terminal 2, which was designed
specifically from the ground up to service transfer traffic, Terminal 1, with its decentralized facilities, is better suited to handling point-to-point
traffic efficiently. No-fills carriers in particular
have contributed substantially to the growth in
Terminal 1, with passengers on low-cost services
accounting for almost 30 percent of the terminal’s traffic. This passenger segment made up 10
percent of the airport’s total traffic in 2004, compared to 9 percent a year earlier.
More than 100,000 passengers in a single day
Munich’s traffic statistics for 2004 show a number of new all-time highs. On three separate
days, the airport recorded more than 100,000
passenger movements, with a new record of
105,040 being set on September 24, 2004. (The
highest figure recorded in a single day in 2003
was 91,248.) On average, the airport registered
73,264 passenger movements a day (2003:
66,283). The number of aircraft movements, too,
reached a new record high on September 15
with 1,232 takeoffs and landings (compared to
1,088 in 2003), and the average number of
movements a day rose to 1,012, up from 940 a
year earlier.
15
The number of destinations served from Munich
Airport also increased: In 2004, 110 airlines operated services on a regular basis to 237 destinations – 23 domestic and 214 international – in 65
countries. That’s 14 more destinations that in
2003. In spite of the increase in the numbers of
passengers and aircraft movements and destinations served, Munich’s on-time rate remained
steady at 81.4 percent (2003: 81.8 percent) and
marks one of the best results ever achieved since
the airport moved to its current location. In comparison with other airports around the world, too,
81.4 percent is an excellent result.
grew 4.0 percent and 9.0 percent respectively. In
the intercontinental segment, growth in traffic to
and from Asia and North America was exceptionally strong at 50.2 percent and 21.6 percent
respectively, whereas Africa traffic contracted
sharply by 31.1 percent.
Maximum takeoff mass (MTOM) figures also
were also higher in 2004, as greater use of widebody aircraft – necessitated by the boom in intercontinental traffic – drove the total MTOM in
scheduled and charter traffic up 11.7 percent to
10,420,104 metric tons. The mean MTOM increased by 2.0 tons to 58.0 tons.
Substantial increase in landing-fee revenue
Landing-fee revenue jumped 14.9 percent to
€224 million in 2004. The increase was the result
of passenger growth at 10.8 percent, an 8.0 percent increase in commercial aircraft movements,
price adjustments in October 2003 and October
2004, and the introduction of a security charge
in February 2004.
A boom in intercontinental traffic
In 2004, 62.9 percent of all scheduled and charter
flights were operated on short and medium-haul
continental routes to and from countries in
Europe and littoral Mediterranean states in Africa and Asia; domestic German flights accounted
for 32.7 percent of the total volume. Intercontinental long-haul services scored by far the highest rate of growth – a plus of 27.1 percent year
on year – to make up 4.4 percent of traffic. In
comparison, domestic and continental traffic
16
As in 2003, the most takeoffs and landings –
43,233 – were recorded on routes to and from
Italy. Italy also saw the greatest absolute increase in the number of aircraft movements in
2004. France and Spain ranked second and third
in the countries with the heaviest traffic.
Revenue from ramp services slipped by 1.2 percent. As had already been the case in 2003, this
was largely on account of a change in booking
procedure: Revenue generated by central infrastructure (for example, the baggage transportation system) in Terminal 2 is booked to the terminal’s operating company and is not included in
Flughafen München GmbH’s own yearend
accounts.
17
Passenger traffic
Landmark growth in passenger traffic
With 26,835,231 passengers in total across all
traffic segments and 26,814,505 passengers in the
commercial sector – in both instances, a rise of
10.8 percent – Munich Airport reached a new
milestone in 2004. The increase in the number of
passenger movements by 2.6 million year on
year is the greatest ever in the airport’s history.
18
High demand for flights to and from Asia
Ranked on aircraft movements and on passenger
movements, the biggest winner was the intercontinental traffic segment, which registered 40.8 percent more air travelers than in 2003. The numberone growth region turned out to be Asia, with the
number of air travelers on routes to and from this
continent up 81.9 percent in comparison with a
year earlier at more than 1.2 million. Growth in
American traffic, too, was high, with passenger
numbers jumping 29.7 percent to 1.7 million. By
contrast, traffic to and from Africa (already at a
modest level) slid again, this time by 27.5 percent.
However, this figure does not include littoral
Mediterranean states in North Africa, which are
classed as continental traffic.
Without doubt, new routes to Abu Dhabi, Teheran
and Delhi, as well as to Charlotte, Orlando and
Vancouver played a substantial role in the success
of intercontinental traffic. In 2004, the most passengers were registered on services to and from
Dubai, followed by the intercontinental destinations Chicago, New York John F. Kennedy, and
Bangkok.
Eastern European traffic on the rise
In continental traffic, passenger numbers increased by 11.3 percent. Passenger growth was
especially high on routes to and from EU member states and countries in Eastern Europe, at 35
percent and 20 percent respectively. Poland,
Russia and Romania in particular were popular
destination countries. On services to and from
Eastern Europe, EU countries and non-EU countries, 28 percent more passengers were registered in total than in 2003. By contrast, domestic
traffic grew just 3.1 percent. As in 2003, the highest number of passengers (almost 1.5 million)
was registered on the Berlin-Tegel route. The
next-busiest routes were Hamburg, Düsseldorf,
Frankfurt and Cologne/Bonn.
In 2004, the rankings of the busiest countries
remained unchanged, with Spain occupying the
topmost slot with 2.1 million passengers, followed by Italy with 1.9 million, and Britain with
1.6 million.
The table of foreign airports with the highest
passenger volumes also remained unchanged in
2003. Almost 900,000 passengers were registered on the London Heathrow route. Secondranked was Paris Charles de Gaulle with nearly
656,000 passengers and Palma de Mallorca with
around 538,000.
Passenger-dependent landing fees up substantially
In 2004, passenger-dependent landing fees grew
26.3 percent to €125 million. This was due to
three factors: the 10.8 percent growth in passenger movements, price adjustments effective
October 1, 2003, and October 1, 2004, and a shift
in the fee structure from fixed to variable landing fees.
19
Air freight and air mail
Air freight reaches a record level
Growth in air freight at Munich Airport in 2004
was more than impressive. With 309,828 metric
tons handled, the volume was 25.6 percent higher
than a year earlier. Whereas the volume of freight
carried by air totaled 170,828 tons and increased
by 21.5 percent in comparison with 2003, growth
in trucked freight (goods classed as air cargo but
carried by road) was even stronger, with the volume rising 31.1 percent to 139,000 tons. On average, Munich Airport handled 467 tons of flown
freight a day in 2004, compared to 385 tons in
2003.
20
More freight on Asia routes
Around 80 percent of the goods freight transported by air was carried as bellyhold freight on passenger services, while the share of goods on
freight-only services dropped from roughly 25
percent in 2003 to 20 percent in 2004. The volume of freight on services to and from Asia grew
by more than 50 percent. This means that, for the
first time, more goods were carried on Asia
routes than on services to and from America. Of
the goods handled at Munich Airport, 47 percent
were import freight and 53 percent were export
freight. Although growth in the volume of export
goods was high at 17 percent year on year,
import freight grew even more rapidly at 27 percent.
Air mail: The decline continues
The gradual downward trend in air mail at Munich Airport persisted in 2004, although the 2.8
percent decline was exceptionally moderate in
comparison with the drop of approximately 10
percent at other airports in Germany. In 2004,
Munich handled 21,339 tons of air mail – 621
tons less than in 2003.
This ongoing trend is due in part to the advance
of new communications media, to changes in
Deutsche Post AG’s distribution system, and to
competition from express carriers. However, the
air mail carried by the latter appears in the statistics as air cargo.
21
Business performance
Aviation earnings grew faster than non-aviation
earnings
In 2004, Flughafen München GmbH’s net sales
rose 5.1 percent to €655 million. Year on year,
aviation earnings grew faster than non-aviation
earnings, rising 8.7 percent compared to just 2.5
percent. Factors that gave aviation earnings a
boost included new security charges levied from
January 1, 2004, and an increase in the variable
portion of landing fees as a result of the higher
overall sales volume. The slow growth in nonaviation earnings is largely the result of Lufthansa and its partners relocating to Terminal 2, the
22
booking of all sales (including rents and concessions) in Terminal 2 to subsidiaries, and the loss
of concessions from third-party handling operators following a European Court ruling.
Operating costs grow less rapidly than sales
Operating costs, including leasing costs, grew
4.7 percent, rising less rapidly than sales (5.1
percent). Here, the first initiatives to improve
earnings launched in 2004 as part of the MPower project began to take hold.
Substantial increase in materials costs
Costs of raw materials, supplies, and purchased
goods and services increased by 19.6 percent in
comparison with 2003 to €191 million. This
increase is entirely due to Terminal 2 (which
opened at the end of June 2003) being on the
books for its first full year in 2004, as opposed to
just six months in the prior fiscal year. The materials costs also include €68 million in variable
landing fees booked to Terminal 2 Betriebsgesellschaft (T2-BG), which are twice as high as they
were in 2003. In addition, Flughafen München
GmbH provides a complete range of facility
management services and the power supply for
Terminal 2; this also impacts on materials expenses.
Personnel costs remain flat
Average human-resource capacity increased
slightly, rising 2.8 percent to 4,372 employeeyears. Successful efforts to reduce vacation and
flextime backlogs in 2004 almost entirely offset
the additional costs arising through the marginal
increase in the company’s headcount. As a result, personnel costs rose just 0.1 percent year
on year, to €221 million.
A drop in other operating expense
Whereas leasing charges remained almost at
their prior-year level of €47 million, other operating expense (excluding leasing) dropped by
8.2 percent in comparison with 2003, to €83 million. This item was affected in particular by initiatives to improve earnings, including a reduction
of spending on conferences, trade shows and
events, auditing and consulting services, and
insurance.
Writedowns reduced marginally
Writedowns were 0.9 percent lower than in 2003.
EBIT doubled
Earnings before interest and taxes (EBIT) doubled approximately year on year, rising to €15.5
million in 2004. Sales revenues benefited primarily from the sharp growth in traffic. At the same
time, costs rose less rapidly on account of initial
successes scored by earnings improvement initiatives introduced as part of the M-Power program.
Slight increase in earnings after tax
At negative €54 million, earnings after tax (EAT)
were 5.8 percent lower in 2004 than a year earlier. Although net income from investment in
other companies improved substantially, tax
provisions in particular led to a poorer overall
result. The increase in net income from investments is mostly due to the positive development
of Terminal 2 Betriebsgesellschaft as a result of
the growth in traffic.
23
M-Power: Strategy development
and earnings growth
The FMG Group is making itself fit for the future.
Following the successful completion and startup
of Terminal 2, Flughafen München GmbH launched
M-Power, a strategy development and earnings
growth project that has realigned the company
strategically, set ambitious earnings targets, and
restructured the organization.
24
Flexibility and adaptability have always been
cornerstones of success in the aviation industry.
Failure to understand and move with change
always poses a threat to your existence in the
long term. This is as true for airports as it is for
other organizations, and these former state-run
facilities have long since transformed into market-driven business enterprises. With its MPower project, FMG has set out to establish itself
firmly as one of the foremost hub airports in
Europe, to map out new and revised strategies
for its aviation and non-aviation businesses, and
to create the right conditions to foster and
sustain strong growth. M-Power also aims to
safeguard and expand the company’s assets,
and to use the entrepreneurial latitude that this
affords to invest in growth. All of the company’s
units are to focus on the future and their activities are to be aligned with creating value.
A new vision
Our new vision – comprising core statements on
the company’s values, purpose and mission –
points the way forward for the FMG Group.
Our values govern our employees’ actions and
interaction, and reflect the fundamental transformation in our corporate culture:
• We embrace change and seek proactively to
shape the future in line with our interests
• We are proud of our tradition and our
strengths, and we build on them to master
future challenges
• We create value and opportunities through
entrepreneurial thinking and profit-oriented
action
• We foster respectful, fair win-win partnerships
within the FGM Group and with our customers, business partners and neighbors
• We communicate clearly, openly and honestly –
internally and externally
• As employees, we work competently and with
dedication, and we are proud of our achievements
25
The action framework within which the Group
operates as a business enterprise is defined by
the company’s new purpose:
“As a leading European hub airport, we provide
connections to places all over the world, and in
our airport city, we present a comprehensive
retail and service offering in an engaging and
attractive environment.
We bring people together across borders, and
we create value for our customers, our employees, our owners, and our home region.”
Our new corporate mission sets out our goal:
“By 2010, we will be Europe’s most attractive
and efficient hub airport.”
Strategic alignment in the aviation sector
Building on our corporate vision, we defined our
aviation-sector goal as being to firmly establish
Munich Airport as a leading European hub. Our
main focuses here are on servicing additional
attractive long-haul and point-to-point routes
and on strengthening our offering of flights for
the vacation market. We are building on Lufthansa and its partner airlines in Terminal 2 and
on new and existing customers in Terminal 1 to
help us achieve this strategic goal.
26
Strategic alignment in the non-aviation sector
To leverage the airport’s earnings potential, FMG
is widening its non-aviation business substantially. The company is working to create an attractive offering of goods and services for all its key
customer groups, both in the “city center” (the
space between the two terminal buildings) and
in adjacent areas. At the same time, the airport
sees itself as a driver and facilitator for the
onward development of the airport region as a
whole, and is engaging in a growing number of
initiatives to foster collaboration with organizations in its surrounding area.
Earnings growth
One primary goal defined for the years ahead is
to boost earnings by €100 million in total for the
period 2004-2007 and to achieve a sustained
increase of €50 million annually from 2008
onwards. More than 400 M-Power programs and
initiatives to raise earnings have been defined
Group-wide. These target not just an increase in
profits, but also reductions in personnel and
material costs, greater optimization of processes
and interfaces, and higher productivity. Around
one-fifth of the targeted earnings growth is to
come from higher sales.
• The five corporate divisions, Finance and
Controlling, Human Resources, Legal Affairs
and Security, Corporate Development and
Environment, and Corporate Communications, were all released to the greatest extent
possible from operational tasks
• Clearly assigned accountability
• The Group’s management style is now based
on the principles of modern corporate leadership, with a target-oriented system of
management in place in each individual
division
• Greater versatility and adaptability
In fiscal 2004, we began with more than 100 of
the 400 or more initiatives. During the first year
of M-Power alone, we succeeded in boosting
profits by €15.8 million.
Reorganization
Another step in the strategic realignment process was to change the old organizational structure that had developed gradually over the
years. Reorganization achieved the following:
• Five market-aligned divisions – Aviation,
Ground Handling, Corporate Real Estate
Management and Development, Retail and
Services, and Terminal 2 – were formed so as
to emphasize the importance of these areas of
business within the Group
• Primary internal services were assigned to
four divisions to align with customers’ needs:
Corporate Services, Information Technology,
Security, and Engineering and Facilities
It is only through the ability to respond rapidly
to constantly changing market conditions that
we can build on, and carry forward in the long
term, the successes scored in past decades.
M-Power’s various programs and initiatives will
continue through to 2008. We have a comprehensive tracking system in place to ensure that
the project’s goals are achieved. The process is
to be dynamic, not static, and capable of adapting in line with new developments without
losing sight of the designated goals and objectives, in particular our new earnings targets.
The new Group structure
Finance and Controlling
Human Resources
Central Divisions
Corporate Communications
Legal Affairs and Security
Corporate Development and Environment
Business Divisions
Aviation
Corporate
Real Estate
Management
and
Developement
Retail and
Services
Ground
Handling
Terminal 2
Engineering and Facilities
Support Divisions
Information Technology
Corporate Services
Security
27
Non-aviation business
Shopping at Munich Airport
Besides ushering in a new era in traffic growth,
the opening of Terminal 2 at the end of June
2003, a major milestone in the airport’s development, gave new impetus to the retail and hospitality sectors at Munich Airport. The more than
110 new stores and restaurants on the three
levels of the terminal building operated jointly
by Flughafen München GmbH and Lufthansa
proved exceptionally popular with air travelers
and airport visitors during 2004, the terminal’s
first full operating year. The rich variety and individuality of the shops and restaurants were
widely acclaimed within the industry and are
now regarded as the new international benchmark in airport retail.
28
To uphold this quality standard throughout the
airport, a number of restructuring measures
were started in Terminal 1, primarily in modules
C and D. The departure areas were gutted to create space for new, centrally located restaurants.
These now offer between 120 and 140 seats per
module, most located right next to the building’s
façade with a direct view of the apron.
The shops, too, were remodeled to enhance
product presentation, and the ranges of products on sale were tailored more closely to the
needs of air travelers. Shop floor space was
increased by around 40 percent, allowing the
retail offering to be better aligned with the target
group. The stores sell not just goods from major
brands but also an extensive selection of newspapers and magazines and a range of souvenirs. The systematic improvements to the terminal infrastructure have done much to enhance
the comfort and convenience of the lounge areas
for passengers and to raise the efficiency of
Terminal 1, which, thanks to its modular design,
is especially well suited to handling different
types of traffic.
Online travel agency extends its service offering
In 2004, a major new feature was added to
Munich Airport’s online travel portal,
www.munich-airport.de. In association with online travel company Opodo, web users can now
book attractively priced scheduled flights all over
the world. This, combined with the worldwide
hotel search service provided on the site by industry incumbent Hotel Reservation Service
(HRS), enables users to put together custom
travel packages. The growing popularity of the
portal is evident from the demand for advertising
space on it.
The web shop at www.munich-airport-shopping.de has also proved a success and has become thoroughly established in spite of major
upheavals in the online shopping market. We will
continue to develop the shop as a sales channel.
MAC profits from its central location
Thanks to its location at the heart of the airport
campus, the München Airport Center remained
largely untouched by the problems generally
affecting commercial real estate outside the airport, and in 2004 had an occupancy rate of
around 90 percent. Popular with a large number
of service businesses, the MAC had one prominent new tenant, well-known international realtors RE/MAX, from the fourth quarter of 2004.
29
New highlights for visitors, employees and air
travelers in 2004 included the completion of an
extension to the Airbräu beer garden and the
opening of Airbräu Tenne, a new events room in
the restaurant that can be hired for special functions. The Edeka supermarket has also increased
its capacity to a offer a wider selection of goods,
renting additional space at a busy point where
the MAC joins Terminal 2.
In 2004, the medical center in the MAC saw a
renewed increase in the number of patients.
With its ten resident specialists and the breadth
and the quality of the treatment available, the
center is gradually building a strong reputation
outside the bounds of the airport.
Advertising space in the two terminals
In 2004, the company stepped up the marketing
offensive to sell advertising space that began
when Terminal 2 opened. In spite of the lackluster market, the offering found plenty of takeup.
The availability of new forms of ad space and
innovative media coupled with advertisers’ interest in addressing business travelers as a target
group made for a successful campaign.
30
Parallel to optimizing the retail and hospitality
offerings in Terminal 1, we focused on serving
the international trend toward large-scale banner
space in premium locations. We also provided
exclusive display space – for motor vehicles, for
example – at prominent places in the area directly behind the security checkpoints.
Airport TV is popular with users
Airport TV has gradually earned itself a firm place
as an advertising platform at Munich Airport, and
from the point of view of the advertising industry
and passengers, current programming comprising
the N24 and CNN news channels has been the
right choice. A poll conducted among air travelers
showed that more than 92 percent of airport users
in Munich are either satisfied or very satisfied with
the programming and that, on average, they
watch airport TV for just under 12 minutes.
For the first time since 2001 and for the seventh
time overall, our well-known competition for the
creative industry, the Munich Airport Award, was
held in 2004 in association with CommClubs
Bayern e.V., a body of communications professionals from various fields. An eminent jury panel
reviewed the many entries submitted and chose
the winners. For the first time, there were two
categories – one for ideas that had actually been
implemented and one for ideas that had not. The
highly positive echo from within the advertising
industry regarding the reinstatement of the competition shows that there is still an immense interest in airport advertising, in spite of widespread
advertising and media overload.
31
Personnel
Slight increase in the headcount
The number of employees working for Flughafen
München GmbH (FMG) increased slightly in the
past fiscal year. At December 31, 2004, FMG had
4,946 employees – 55 (1.1 percent) more than a
year earlier. Of the total workforce of 4,946, 2,125
were salaried employees and 2,821 were wage
employees. Of the salaried employees, 2,016 had
32
unlimited contracts and eight had fixed-term contracts. Seven employees were temporary workers, 12 were business trainees, and 82 were commercial apprentices. Of the 2,821 wage employees, 2,127 had unlimited contracts, 656 were temporary and part-time workers, and 38 were trade
apprentices. In 2004, FMG took on 28 business
and 14 trade apprentices.
Compared to a year earlier, the number of
foreign nationals in the workforce at December
31, 2004, had increased by nine (1.1 percent),
from 789 to 798. As in 2003, foreign workers
accounted for 16.1 percent of the total workforce. These workers came from a total of 58
countries. The majority, 467, were from Turkey; 52
were from Austria; and 49 were from Italy.
Marginal rise in personnel expense
In 2004, the company’s M-Power project, set up
to improve efficiency, cost-effectiveness, and
earnings growth throughout the FMG Group,
was very much in evidence in the area of human
resources, where initiatives were launched to
develop HR capacity and enhance operating conditions.
On account of efforts to raise productivity within
the company, FMG’s headcount only increased
marginally. Year on year, HR capacity grew just
2.8 percent to 4,372 employee-years in total –
and this in spite of the sharp rise in the numbers
of aircraft and passengers handled.
Nonetheless, company units succeeded in meeting the requirements and accomplishing the
tasks involved in accommodating the growth in
air traffic by boosting productivity.
Personnel expense went up just marginally,
rising €0.3 million or 0.1 percent to €220.9 million. This was due to the slight increase in the
headcount and to changes in provisions for
vacation, overtime and flextime pay. A significant improvement was achieved by rigorously
reducing vacation, overtime and flextime
backlogs.
Breakdown of personnel costs
(€ million)
Wages and salaries
(including subsidies
for travel and meals)
Social security levies,
costs of retirement plans
and related benefits
Total personnel
expense
2004
2003
172.0
173.3
48.9
47.3
220.9
220.6
More vocational trainees than ever
In September 2004, Flughafen München GmbH
took on 42 trainees in September 2004 – 10 percent more than a year earlier – to begin vocational training with the company. This underscores our ongoing commitment to uphold the
voluntary pact on apprenticeships between
government and industry in Germany. In total,
130 young people trained with us in 2004 – in
business administration, office communications,
and aviation services vocational programs, as
well as in university-level degree programs in
commercial informatics, business and airport
management, general mechatronics, and specialist mechatronics for standard and specialty
vehicles and mobile equipment.
In addition, FMG took part in a special program
organized by EQJ (a German organization that
helps school-leavers without a place on a vocational program to find an entry-level job) to
support youngsters trying to obtain entry-level
qualifications. Since November 2004, ten young
people who signed up for the program have
been working as interns for FMG and its subsidiary Cargogate and now have a realistic chance
of finding an apprenticeship or career opportunity once they finish.
FMG also helped to support young scientists,
hosting the Munich West regional “Jugend
forscht” and “Schüler experimentieren” competitions for the second year in succession in
February 2004. Forty-eight projects in a range of
fields, including mathematics, the work environment, chemistry, information technology, and
physics, were put on display and appraised by a
jury.
International exchanges
For an international commercial airport like
Munich, employees with a globally oriented education and professional training are invaluable.
In light of this, we stepped up our collaboration
with the Civil Aviation Authority of China (CAAC),
the organization that operates China’s airports.
In May 2004, Yang Guoqing, deputy director
general of the CAAC, visited Munich Airport and
signed an agreement on future management
programs with FMG president and CEO Michael
Kerkloh. Previously, in April 2004, CAAC managers had completed a training program (primarily on safety); and in the following November,
heads of security departments from a number of
China’s airports attended a program at Munich
Airport on security.
33
In addition, an exchange program with Munich’s
partner airport, Denver International, was
launched in October 2004. FMG department
heads had the opportunity to spend a week in
Denver sharing their ideas and experience with
colleagues; a return exchange is planned for the
summer of 2005.
Foreign internships for trainees
At the European level, FMG again took part in
exchanges organized through the EU-sponsored
Leonardo da Vinci education program in 2004.
Fifteen vocational trainees completed three-week
internships to acquire careers experience at a
number of European airports. In September, apprentices in business communications visited
Lisbon and Faro airports; in October mechatronics
apprentices worked at Vienna Airport, and aviation services and business administration apprentices spent time at Malta Airport.
Likewise as part of the Leonardo da Vinci program, apprentices in technical occupations from
Flughafen Wien AG visited Munich Airport to learn
about their German colleagues’ approaches to
training and work. Also, employees from business
admin, technical, marketing, and passenger and
terminal services units at Lisbon, Faro and Porto
airports spent time working in a number of
departments at Flughafen München GmbH.
A popular place for internships
FMG was highly popular among students eager
to spend an internship with us because of the
chance it affords to experience jobs “live” and to
get a behind-the-scenes look at the airport. In
2004, several FMG units offered attractive
internship opportunities in a wide range of fields
for undergraduate and doctoral students as well
as retrainees. In particular, students from local
schools, colleges and universities had the
chance to gain valuable hands-on experience in
a wide variety of fields in a real-life work environment.
Training programs focus on the traffic sector
In 2004, our personnel development and training
unit registered a rapid drop in the number of
seminar days in comparison with a year earlier.
Whereas the number of attendee-days had
jumped 58 percent to 24,334 in 2003, demand
shrank by 47 percent to 12,998 attendee-days a
year later. There were a two main reasons for the
sudden decline: Training in preparation for the
opening of Terminal 2 was no longer required,
and the M-Power project generally placed greater demands on FMG employees’ time. However,
although the number of days of training delivered declined, attendees continued to rate the
seminars highly.
As in 2003, much of the training provided was
aimed at traffic sector employees. Three hundred
and nineteen workers successfully completed
level 1 and level 2 operations exams (internal
FMG qualifications) that provide a foundation for
subsequent chamber of industry and commerce
(CIC) examinations. Fifty-six employees passed
the CIC exams to qualify as aircraft handlers; a
further 14 successfully completed exams to qualify as junior traffic assistants in preparation for
working as dispatchers in apron control and
central traffic control.
Restructuring with M-Power
As part of the M-Power project to boost earnings
and realign company strategy, a number of organizational changes were made in 2004 preparatory to restructuring personnel development and
training. These changes included the realignment
of our training center in Schwaig with market
needs and the merging of personnel and organizational development departments to form a
single Group-wide unit.
In appreciation of their services and with sorrow
we remember the following colleagues who
passed away in 2004. They will be sadly missed
by their fellow employees.
Werner Schwarz
Ralf Pörschke
Herbert Scheuer
Hacimemis Altin
34
=
=
=
=
February 4, 2004
May 27, 2004
June 23, 2004
September 25, 2004
35
Subsidiaries and associated companies
A comprehensive offering for customers
With net external sales in excess of €300 million
and with almost 2,200 employees under contract,
Flughafen München GmbH’s subsidiaries and
associated companies play a crucial role in the
FMG Group’s business growth and development.
In 2004, their products and services were once
again indispensable in helping Munich Airport to
successfully meet the challenge of fulfilling its role
as a major multifunctional European service center. Flughafen München GmbH’s policy regarding
subsidiaries and associated companies remains
focused on improving – and widening, where
appropriate – Munich Airport’s offering for its
customers.
36
aerogate München – Gesellschaft für Luftverkehrsabfertigungen mbH
The purpose of aerogate is to provide passenger
and aircraft handling services in those sectors
not already covered by ground services. The
company also operates baggage delivery and
ticketing services. In spite of competition from
several rival service operators, a continued decline in handling service prices, and the generally slow economy, the company succeeded in
generating proceeds on sales of €10.8 million.
With a workforce of 162 contractual employees,
aerogate handled 1.3 million passengers and
19,500 aircraft in 2004.
AeroGround Flughafen München Aviation
Support GmbH
AeroGround primarily plays a supporting role in
the provision of handling services by Flughafen
München GmbH. The company recruits students
and other temporary workers, and hires out their
capacity to ramp services to assist with aircraft
handling. With a workforce of 80 employees, the
company achieved net sales of €2.4 million in
fiscal 2004.
AFBG Augsburger Flughafen Betriebs-GmbH
AFBG’s purpose is to manage business operations at Augsburg Airport. AFBG’s shareholders
comprise Flughafen München GmbH (50 percent), the city of Augsburg, the Augsburg administrative district, the Aichach-Friedberg administrative district, and a pool of Augsburg entrepreneurs.
Allresto Flughafen München Hotel und Gaststätten GmbH
Allresto and its workforce of more than 530 people generated total sales of €52 million in fiscal
2004, making the company Flughafen München
GmbH’s third-highest-earning affiliate. Allresto
operates the restaurants and bars in both of
Munich Airport’s terminals, employee canteens,
a Burger King fast-food restaurant, the “municon” congress center, and the airport hotel
(managed by the Kempinski Group). Although
Allresto manages its hospitality operations itself,
its hotel and casino activities (with the exception
of the casino in the MAC) are run by third-party
operators.
In Terminal 1, due to the decentralized structure,
the company operates bars in each of the modules in the arrival and departure areas. In addition, there are six snack bars, plus several restaurants, including Airbräu, Käfer, and Il Mondo.
In Terminal 2, the company runs the Airbräu and
Käfer restaurants, an Italian piazza, and a number of bars in the pier area.
The central departure area bars in Terminal 1’s C
and D modules, remodeled during 2004, now
offer greatly improved service. The departure
area bars in the remaining modules are scheduled for remodeling in 2005. In 2004, the popular
Airbräu restaurant in the central area was extended; the addition of a new room has created
the perfect location for a variety of events, in
particular cabaret shows.
Bayern-Facility Management GmbH
In July 2004, BayernFM, a joint subsidiary set up
by Bayerische Landesbank (51 percent) and
Flughafen München (49 percent), began operating. With a workforce of around 120, BayernFM
runs all of Bayerische Landesbank’s real estate,
provides facility management services at the airport, and engages in other activities, including
the development of third-market business outside the local region. Among other things,
BayernFM is responsible for technical facility
management at Bosch Siemens Hausgeräte
GmbH and for the IT center operated by
Bavaria’s savings banks, and even handles warranty tracking for BMG Records GmbH. With the
combined competency of its two corporate
parents, BayernFM, which reported net sales of
€6.9 million for the second half of 2004, is able
to offer customers an extensive portfolio of services.
CAP Flughafen München Sicherheits-GmbH
With a workforce of 271 employees, CAP provides guard and security services at Munich Airport and specializes in implementing the security
measures required specifically under aviation
law. In 2004, CAP reported sales of almost €12
million. The company is owned jointly by Flughafen München GmbH (76.1 percent) and SECURITAS GmbH Aviation Service (23.9 percent).
Cargogate Flughafen München Gesellschaft für
Luftverkehrsabfertigungen mbH
Cargogate provides air cargo handling services
at Munich Airport. Besides the transshipment of
cargo, these services include the storage and
documentation of freight goods. In spite of
growing competition, Cargogate remained the
largest independent cargo handler at Munich
Airport in 2004. In the past fiscal year, the company’s workforce of 136 employees handled
more than 80,000 metric tons of freight for 73
customer airlines. Cargogate reported total earnings of €10.5 million in fiscal 2004.
37
EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH
Co-owned by GlobeGround GmbH (51 percent)
and Flughafen München GmbH (49 percent), EFM
is responsible for de-icing aircraft at Munich Airport. Its services also include aircraft pushback
and maneuvering on the apron and in the maintenance area. With a workforce of 112 people, the
company achieved record sales of almost €22
million in the past fiscal year on account of the
exceptionally hard winter.
eurotrade Flughafen München Handels-GmbH
In spite of the generally slow economy, eurotrade and its workforce of around 600 people
succeeded in boosting sales by €17 million to
€95 million to become the second-highest-earning Flughafen München GmbH affiliate.
Eurotrade runs a range of retail outlets at
Munich Airport, such as duty free and TravelValue
shops, newsagents, and stores selling travel
goods, souvenirs, cosmetics, clothing and toys.
The company also operates cafés and snackbars
embedded in retail units. Flughafen München
GmbH owns 74 percent of eurotrade; Mr. Herbert
Wolter holds the remaining 26 percent.
In Terminal 1, the company has to operate duty
free, Travel Value, and newsagent outlets in
every module because of the building’s decentralized structure, but in Terminal 2, these stores
are all set up at central locations. In 2004, Spazio
Italia, a new 120sqm departure-area bar, opened
in Terminal 2. Here passengers can relax and
enjoy Mediterranean specialties and short films
in an Italian atmosphere. Spazio Italia was created as a joint project organized by eurotrade,
Air Dolomiti, Flughafen München GmbH, and
Deutsche Lufthansa.
38
FMV – Flughafen München Versicherungsvermittlungsgesellschaft mbH
FMV brokers and manages insurance of all kinds
but specializes mainly in corporate insurance for
Flughafen München GmbH and Terminal 2’s operating company, and insurance for company
employees. FMV, which also provides consulting
and advisory services for Dresden, Leipzig and
Nuremberg airports and, as of 2004, for Cologne, Münster, Bremen, Hamburg, Düsseldorf,
and Stuttgart airports, reported sales of more
than half a million euros in 2004. Since the beginning of fiscal 2004, FMV has been wholly
owned by Flughafen München GmbH.
MediCare Flughafen München Medizinisches
Zentrum GmbH
MediCare operates Munich Airport’s medical
center and provides emergency care to airport
employees, passengers, and visitors. The company additionally offers occupational healthcare
services and serves as a contact and intermediation point for foreign patients at the airport.
MediCare also owns AirportClinic München, operated on a concession basis as a private clinic
as per Section 30 of Germany’s Trade Regulation
Act (GewO). The company, which has around 35
employees, is co-owned by Flughafen München
GmbH with 51 percent and by MAHM GmbH, a
group of doctors, some of whom are based at
Munich Airport, with 49 percent. In fiscal 2004,
MediCare reported total sales of €3.4 million.
Terminal 2 Betriebsgesellschaft mbH & Co oHG
This company’s purpose is to purchase, create
and finance movables and equipment, to lease
buildings, to let buildings and facilities, and to
provide and purchase services – in particular services required in connection with air-side and
land-side handling operations – required for the
operation of Terminal 2 (and future facilities at
Munich Airport), and for carrying out all of the
ancillary activities associated directly and indirectly with the company’s activities and the operation of the terminal.
T2 BG is co-owned by FMG (with 60 percent),
and by Passage Services Holding, a wholly
owned subsidiary of Lufthansa Commercial
Holding GmbH (LCH), which, in turn, is a wholly
owned DLH subsidiary. Terminal 2 Betriebsgesellschaft reported sales in excess of €200 million in fiscal 2004.
FM Terminal 2 Immobilien-Verwaltungsgesellschaft mbH & Co oHG
The purpose of the company is to finance and
build the second passenger terminal at Munich
Airport, which has now been rented out to Terminal 2 Betriebsgesellschaft mbH & Co oHG as the
primary tenant. The company is co-owned by the
FMG company Terminal 2 Holding GmbH and by
Lufthansa Commercial Holding, a wholly owned
Lufthansa subsidiary. The company reported €73
million in revenue from rents in fiscal 2004.
Terminal 2 Holding GmbH
The purpose of the company is to hold Terminal
2-related and other FMG investments, which currently include FM Terminal 2 Immobilien-Verwaltungsgesellschaft mbH & Co oHG.
Group sales
In fiscal 2004, Group sales revenue totaled
€788.0 million – up €73.9 million or 10.3 percent, year on year. Earnings from the servicing
of air traffic were 11.5 percent higher than in
2003, totaling €408.3 million, or 52 percent of
earnings. Non-aviation earnings (from rents,
leases, hospitality, etc.), which accounted for the
remaining 48 percent of total earnings, were up
9.1 percent, or €42.1 million, on 2003 at €379.7
million.
Group operating expenditure
Operating costs in fiscal 2004 were roughly
€772.2 million – €18.3 million or 2.4 percent
more than in fiscal 2003.
In spite of the 10.3 percent increase in external
sales, the Group succeeded in reducing its materials expense slightly to €192.2 million. This was
largely the result of extensive measures to
improve productivity and earnings. Personnel
costs were down €2.2 million year on year at
€279.8 million as a result of efforts to reduce
vacation and overtime backlog across the Group.
Group writedowns were €18.0 million higher
than in 2003 because of Terminal 2’s first full
year of writedowns.
Group net earnings
Compared to 2003, in which the FMG Group
reported a loss of €51.6 million, net earnings
were similar in 2004, with the Group posting a
loss of €50.1 million. The primary reason for the
negative earnings was the need to make provisions for tax liabilities, in particular to accommodate differences between the accounts prepared
for tax and financial reporting purposes.
39
Environmental protection
Continuous monitoring of aircraft noise
As in prior years, the airport monitored aircraft
noise levels continuously at 16 fixed measuring
stations and at a further 12 locations using a
mobile measuring station. All key readings are
published within a short space of time on Munich
Airport’s web site. Complete sets of results are
available in regularly published noise and emissions reports that are available for download on
the airport web site.
40
In spite of an almost 8 percent increase in air
traffic year on year, none of the measuring stations recorded a continuous sound pressure level
of more than 60 dB(A) in 2004. Greater use of
larger aircraft types was evident from the records
of individual noise events. The incidence of levels
in excess of 75 dB(A) increased by 18 percent,
but readings of more than 85 dB(A) were registered just two or three times a day, which also
points to a low overall noise level in the airport’s
surrounding area.
Deployment of an environmental management
system
In early 2004, Flughafen München GmbH decided to deploy an environmental management
system so as to improve legal certainty and to
identify and utilize potential for preserving
resources more easily. Certification to DIN ISO
14001 and the EU’s Eco-Management and Audit
Scheme (EMAS II) is slated for October 2005. The
environmental statement for this project – a
public report on FMG’s environmental initiatives
and performance – will be published in 2005.
More night flights
In 2004, the number of night flights increased
significantly for the first time since current nightflight regulations were introduced in March
2001: The number of takeoffs and landings rose
from 42 to 49 per night, on average. However, 71
percent of the additional flights were due to
delays and just 29 the result of scheduled nighttime movements.
All night flights are governed by a noise quota
which must not exceed a set maximum volume
on an average night over the period of a calendar year. The actual noise level is calculated
based on the number of takeoffs and landings
and on the sizes of the different types of aircraft.
Only 39 percent of the noise quota was used in
2004.
Noise-optimized arrival and departure routing
In a research project supervised by the German
Aerospace Center, air-traffic control operator
DFS and Flughafen München GmbH are collaborating on finding ways to reduce the noise
caused by aircraft takeoff and landing operations. Given that advances in further reducing
engine noise anticipated for the years ahead will
only help to improve the noise situation at airports in the longer term on account of the time it
will take for these improvements to find their
way into new production aircraft, the aim of this
joint research project is to bring about shortterm improvements.
The project focuses on minimizing noise on
departure routes by taking into account the average wind direction and its impact on noise propagation; on gauging the potential for noise
reduction in mapping flight paths to the course
of autobahns; and on estimating the potential
for noise reduction through weather dependent
flight paths. FMG is contributing to the project
by supplying data recorded by its noise monitoring installations.
Airborne pollutants remain at non-critical levels
Airborne pollutants at the airport remained
below critical levels in 2004 and were roughly
equivalent to those typically found on the edge
of cities. Nitrogen dioxide levels were partly
affected by factors not related to the airport; at
the same time, the concentrations of nitrogen
dioxide caused by the airport have increased on
account of the growth in traffic. More significant
in this context is that the regulations governing
this pollutant have been made more stringent.
When the airport moved to its current location in
1992, the annual limit was 80 micrograms
per cubic meter of air; for 2004, though, the limit
was set at 52 micrograms per cubic meter. The
figure of 33 micrograms per cubic meter recorded at the airport in 2004 is within acceptable
limits.
41
However, the limit is to be reduced still further –
to 40 micrograms per cubic meter – by 2010. To
address this issue, FMG has set up a third measuring station and has relocated another station
with the approval of the relevant authorities –
measures that will allow the airport’s share of
the overall concentration to be computed more
exactly and corrective action to be taken if
necessary.
More engine tests
To avoid additional disturbance to neighboring
residential developments at night, airlines use a
hush house at Munich Airport to conduct tests on
aircraft engines. The hall-type steel structure is
open on two sides, but thanks to its conical form
and heavy insulation – 20-centimeter reinforced
concrete walls with 10-centimeter acoustic panels
on the inside and on the ceiling – the building
breaks up and absorbs sound waves extremely
effectively.
Additional steps were also taken to reduced
noise in nearby residential areas. These included
the provision of a special stand for propeller aircraft, training programs for technical personnel,
42
new microphone equipment, and more precise
analysis through filtering of extraneous noise. To
maintain tight controls and ensure transparency,
the installation is monitored by video cameras 24
hours a day, all test runs are analyzed in detail,
and monthly reports are submitted to Bavaria’s
Ministry of Economic Affairs, Infrastructure,
Transport and Technology.
Since the start of operations in 1992, the facility
has been used more frequently every year. In
2004, a total of 1,052 tests were carried out, compared to 829 in 2003.
A new environmental film
In 2004, Flughafen München GmbH produced a
new environmental film, a 27-minute documentary (available in German and English on DVD or in
German on video cassette) reporting on all the
initiatives undertaken and the technologies and
procedures in place that are designed to ensure
environmentally compatible operations and
avoid nuisance to neighboring communities. The
film covers a range of topics: aircraft noise, airborne pollutants, water, recycling, and energy.
43
xx
Corporate communications
Top rating for FMG’s media relations work
Flughafen München GmbH’s intensive media
relations efforts in 2004 once again helped
Munich Airport to achieve a high profile and gain
positive coverage in the media. Besides the
annual press conference and the traditional halfyearly Press Club briefing, FMG organized
numerous other press appointments and events
to deliver information on airport-specific topics
to the media. The airport also published 72 press
releases and around 60 current press photos.
44
Just how successful Munich Airport’s media relations efforts were in 2004 emerged in a study by
an independent communications research institute, Dr. Doeblin - Gesellschaft für Wirtschaftskommunikation. In May and June 2004, the institute carried out a written survey among business
journalists to rate the quality of 72 Bavarian companies’ media relations work. In all four of the
categories covered, Flughafen München GmbH
made it into the top ten.
Munich Airport ranked fourth behind Siemens,
BMW and Audi among companies that were
especially successful at drawing attention to
themselves through their media relations work.
Scored on its commitment to its location and
how this was reflected in the company’s media
work, FMG was top-ranked alongside BMW and
Messe München.
Conferences, trade shows and exhibitions
A whole range of events was held at the airport
in 2004, including a panel discussion on EU
enlargement, an economic reception by the city
of Freising and its local district, and even a fireside chat with representatives of the U.S. chamber of commerce. Exhibitions held in the airport’s
catchment area to inform the public at large
about the airport were again popular and well
attended. Our trade show team were much
sought-after contacts at the CBR show in Munich
and at trade shows in Regensburg, Rosenheim,
and Kempten.
Other activities included mounting FMG’s presence at the Aviation congress in Berlin and organizing the first airport M-Power Run, in which
close to 300 employees gave an impressive
demonstration of their stamina.
A rich information offering and strong ratings
In 2004, FMG printed more than 413,000 brochures and flyers – an impressive figure that
underscores the interest in Munich Airport
shown by passengers, visitors, and the public at
large. Information on passenger handling, airport
facilities and other airport-related topics was in
high demand. Given the level of interest among
the public, brochures on Terminal 2 and the airport’s environmental initiatives were updated
and published in German and English.
In 2004, Munich Airport also hosted six interesting exhibitions; these included displays of beautifully executed metal sculptures and bizarre
human figures carved in wood with a chainsaw.
The company’s M-Power project, an altogether
more complex topic, featured prominently in
2004 and received a large amount of carefully
prepared coverage in specials and supplements
in Flughafen Report, our monthly employee
newsletter. The goal was to raise awareness of
the project’s goals among the FMG Group’s
workforce.
The information is retrieved from a Group-wide
content management system in which data can
be edited and then exported to a range of media
in a consistent corporate design. Content relevant for Terminal 2 can be filtered out of the
mass of data and published in the information
kiosks. Terminal 2’s operating company can also
add important information to the system and
publish its own pages on the Internet and corporate intranet.
Published six times a year, our newsletter for airport customers and neighbors, M terminal,
scored well in a survey carried out in its distribution area. Around 94 percent of those surveyed
rated the publication’s information content, readability, and design as “good” or “very good.” In
addition, 95 percent ranked the newsletter as
“important” or “very important.”
Networking between online media
A new service was launched in Terminal 2 in
2004: Information previously only accessible on
the Internet is now available to air travelers, airport visitors, and meeters and greeters at 17 passenger information kiosks.
45
Marketing
Munich is a leading gateway
A key factor that shaped the past fiscal year was
the introduction of a number of new intercontinental routes by Deutsche Lufthansa during the summer season. Growth in the long-haul sector was
fueled additionally by successful new acquisitions
among airlines. Etihad Airways began flying nonstop to Abu Dhabi, and Air China introduced a new
nonstop service to Beijing. In addition, carriers
stepped up frequencies on a number of routes.
Delta Air Lines, for example, extended its summer-season service to Atlanta with a second daily
flight, and Air Transat, began operating a second
service each week to Toronto via Halifax.
46
One of our primary tasks was to market the new
long-haul routes through a variety of promotion
campaigns, not just locally but in the destination
regions, too. The initiatives consisted of classic
marketing work like direct marketing, trade
shows and events, as well as marketing programs conducted on site in foreign cities, such
as Teheran, Delhi, Bangkok, Beijing and Shanghai, not just to advertise the new long-haul services, but also to promote Munich as a gateway
for onward flights to destinations in Europe and
beyond
Association of German Travel Management
(VDR) and in 2004 became a member of the
National Business Travel Association (NBTA) to
establish a presence in the important north
American business travel market. FMG’s marketing department designed and produced a new
information brochure, MUC – Your Gateway to
Successful Business, designed specifically to
address business travelers, which was sent out
to leading business travel agents and travel
managers through our representations in North
America and Asia.
A resounding success: The Bavarian Travel
Summit
One major event early on in our 2004 calendar
was the Bavarian Travel Summit in New York,
organized in association with Bayern Tourismus
Marketing and Travel Weekly, America’s foremost
travel and tourism newspaper. The goal was to
make Munich and Bavaria more widely known in
the North American tourism market and to promote not just existing nonstop services connecting Munich with the U.S. and Canada but also
new services to Charlotte, Vancouver, and Halifax, and a second service to Atlanta, all launched
in the summer of 2004.
At a business travel get-together hosted by FMG
at Munich Airport at the end of April 2004 for the
business travel industry in the airport’s catchment area, airlines had the opportunity to present their products, services and offerings for
business travelers.
A destination workshop was held for 30 leading
managers in the U.S. travel and tourism industry
at which we showcased Munich Airport as a
gateway to romantic Europe and the Alpine
region. Thanks to extensive coverage in Travel
Weekly and a press lunch with more than 40
travel and tourism journalists, the Bavarian Travel Summit succeeded in reaching more than
50,000 multipliers throughout North America’s
travel industry.
A key target group: Business travelers
Our marketing activities also focused in particular on business travelers. It was with this target
group in mind that FMG in 2002 joined the
Important acquisitions in the freight sector
With the acquisition of Cathay Pacific Cargo,
Munich has been offering three freight-only services a week with a B 747-200F to Dubai and
Hong Kong since August 2004. Since November
2004, Emirates has been operating a freight-only
service with the same aircraft type on the route
Dubai – Munich – New York. Both of the new
scheduled freight services have helped to drive
an unprecedented increase in flown freight in
Munich.
For the sixth time in seven years, Flughafen
München GmbH was honored with an award for
the best marketing among airports with 10-25
million passengers. At Routes 2004 in Madrid,
an international conference for airports and airlines, the majority of airlines picked FMG for the
Airport Marketing Award 2004. The airlines evaluated the quality of airports’ approaches to
attracting new business as well as their efforts to
maintain and expand existing traffic.
47
Regional relations
Dialogue with local neighbors
Flughafen München GmbH seeks constantly to
foster a common understanding between the airport and its neighbors as to how the airport benefits its home region and vice versa by taking local
and regional interests into account in its plans for
the airport’s onward development. FMG believes
firmly that it can only succeed in developing the
airport into an aviation hub for Central Europe
with the support of its neighbors and local communities.
48
Flughafen München GmbH’s regional relations
policy sets out to promote an open dialogue
with neighboring towns and communities. One
of the bodies through which the company does
this is the Airport Forum, a committee staffed by
local politicians, representatives of various interest groups, and Flughafen München GmbH
employees, and chaired by Bavaria's Minister of
Economic Affairs, Infrastructure, Transport and
Technology, Dr. Otto Wiesheu. The Airport Forum
convened in 2004 to discuss such issues as the
development of transportation networks, public
infrastructure, housing, and the labor market.
FMG’s regional relations officer took part in the
Forum’s sessions as well as a series of neighborhood meetings, held for the first time in 2004,
with officials from the Erding and Freising
districts. The purpose of these meetings, which
currently represent the only district-wide platform for sharing ideas and opinion, is to establish Munich Airport as an integrating body within
the region.
Contact point: The regional relations office
Roundtable discussions between FMG executives and citizens’ initiatives in the region served
to promote communication with local communities. The airport also engaged in a number of
joint projects with local business community
members, set up with the goal of promoting
greater networking between companies located
on campus at the airport and companies in the
airport’s surrounding region. In 2004, Flughafen
München GmbH’s regional relations office, a
central point through which people can contact
with the company’s regional relations officer,
fielded a large number of inquiries from airport
neighbors.
Structure and traffic report completed
To optimize the airport’s functional and structural
integration into its surrounding area, Flughafen
München GmbH took part in a study and dialogue process initiated by the Airport Forum.
The first phase of a structure and traffic report
was completed in July 2002. The report examined changes in population numbers, the labor
market, residential and commercial real estate,
and the transport infrastructure since Munich
Airport began operating to assess the current
situation as well as the potential needs in terms
of residential housing, the labor market, and
transportation through to the year 2015.
Development roadmap for the region
The second phase of the study was completed in
2004. The concluding report looks into ways to
develop the airport region as a future highgrowth settlement area. Given that the development roadmap could only be prepared on the
basis of an open dialogue with the region’s
towns and communities, key administrative
bodies and other groups involved in the planning process were invited to participate in a
number of workshops and hearings.
Flughafen München GmbH is highly satisfied
with the outcome, not least because the structure and traffic report’s findings were partly responsible for driving forward important regional
transport projects in 2004.
Bringing about improvements to the road infrastructure servicing the airport was one of the
regional relations officer’s primary objectives.
Valuable suggestions and ideas now being pursued were provided by the Hallbergmoos Traffic
Survey, published in the summer of 2004, which
was carried out jointly by the Hallbergmoos local
authority, the Freising administrative district,
and Flughafen München GmbH.
49
2004 year-end accounts
50
Management’s review of fiscal 2004
General economic environment
and situation in the industry
The worldwide economic recovery that began to
emerge in 2003 gradually gained momentum
during the course of 2004, and the global economy moved into a phase of strong growth.
Hopes that Germany’s domestic economy would
keep pace with the boom in other world economies were disappointed, with the result that
leading economic research organizations were
compelled to reverse their initially optimistic
forecasts for the German economy as 2004 progressed.
World aviation, which had shown signs of
picking up again in 2003, did indeed recover in
2004, with airport operators announcing that the
aviation crisis of recent years, caused by the war
in Iraq and the impact of the respiratory disease
SARS, was now over.
In 2004, the German Airports Association (ADV)
and its member airports saw a solid 7.9 percent
increase in the number of passenger movements, which rose to 155.7 million – more, even,
than in 2000, the “pre-crisis” year, when movements totaled 143.6 million.
Business trends
Terminal 2, the new passenger building co-built
and co-financed by Flughafen München GmbH
and Deutsche Lufthansa which opened on June
29, 2003, completed its first full operating year
in 2004. The terminal has given Munich Airport a
highly advanced handling facility capable of
advancing Munich’s development as a high-performance aviation hub within a worldwide route
network and enabling the airport to occupy an
optimum competitive position.
In comparison with a year earlier, Munich Airport
registered an outstanding, double-digit increase
in passenger numbers, achieving the highest
rate of growth among Europe’s ten busiest passenger airports.
With more than 26.8 million passenger movements, the passenger volume increased by 2.6
million year on year, a rise of 10.8 percent.
Aircraft movements in all traffic segments were
up 7.7 percent compared to a year earlier, with
383,110 takeoffs and landings.
With a volume of 170,828 metric tons, freight
carried by air grew 21.5 percent.
Flughafen München GmbH’s sales rose 5.9 percent, year on year, to €628.4 million.
Thanks to the rapid growth in traffic, revenue
from aviation increased by €27.5 million, or 8.4
percent, to €355.2 million.
Landing and parking fee revenue grew sharply,
rising €29.2 million to €224.3 million, whereas
earnings from ramp services slipped €1.7 million, or 1.3 percent, to €130.9 million. In fiscal
2004, a number of airlines took their business to
a competing ramp services operator, which led
to a small drop in revenue.
Growing €7.6 million in fiscal 2004 to €273.2
million (an increase of 2.9 percent), non-aviation
business contributed 43.5 percent of total earnings – much the same as a year earlier. Although
non-aviation revenue from parking fees, utilities
and other services all showed solid growth,
revenues from concessions, rents and hire
charges were €6.1 million lower in 2004 as sales
and rent revenue streams for the entire year
were booked to Terminal 2, which is operated by
a company co-owned by FMG and DLH.
Operations at Terminal 2 caused materials
expense to rise sharply by €31.3 million to
€190.9 million. The increase was due to the
transfer of variable landing fees for T2 passengers (which rose by €36.8 million) to Terminal 2
Betriebsgeselleschaft. Without the transfer of
variable landing fees, materials expense would
have dropped by €5.5 million, from €128.3 million to €122.8 million, year on year. In spite of
an increase in agreed pay rates effective January
1, 2004, and a marginal increase in employee
capacity, personnel expense rose just 0.2 percent to €220.9 million.
51
Management’s review of fiscal 2004
Interest, leasing and writedowns – all key factors
affecting the company’s cost situation – amounted to €164.6 million, or 25.0 percent of the total
costs, not taking into account income from affiliates or income tax.
This marks a drop of €2.0 million or 1.2 percent,
year on year.
The financing of the Terminal 2 building and
related movables is mostly managed by
subsidiaries set up as joint ventures with DLH.
Having reported a loss of €51.2 million in 2003,
Flughafen München GmbH again posted a net
loss – of €54.1 million – in fiscal 2004.
This result is primarily due to differences between the figures determined for income tax and
financial reporting purposes, the formation of a
€28.4 million reserve for deferred trade tax, and
the formation of a €10.1million reserve for trade
tax from prior years.
High financing and writedown costs in the
review year (which was also Terminal 2’s first full
operating year) led to loss takeovers from Terminal 2 Betriebsgesellschaft mbH & Co oHG of
€13.3 million, plus €3.7 million from Terminal 2
Holding GmbH, which essentially includes the
results posted by FM Terminal 2 ImmobilienVerwaltungsgesellschaft mbH & Co oHG.
Publication of the year-end financial statement
The year-end financial statement for the 2003
fiscal year was published in issue number 235 of
the Federal Gazette on December 10, 2004.
Financial position and capital structure
Compared to a year earlier, the balance-sheet
total at December 31, 2004, slipped 2.3 percent
to €2.22 billion. This is largely due to fixed-asset
writedowns. Additions to tangible assets totaled
€17.8 million, compared to disposals of €19.3
million, and writedowns of €95.9 million.
Affiliates
The €24.7 million rise in the company’s income
from affiliates is a reflection of the positive
growth in air traffic at Munich Airport. However,
on account of the high investment burden associated with the construction of Terminal 2 and
startup losses resulting from operations, the
overall balance showed a net loss of €14.3 million.
After a loss-making year in 2003, subsidiaries
eurotrade and Allresto both returned to positive
earnings territory with €1.8 million and €0.2 million respectively in fiscal 2004. Aeroground and
Cargogate, too, reported positive earnings of
€0.1 million.
Other Group companies showing positive earnings in fiscal 2004 were FMV – Flughafen München Versicherungsvermittlungsgesellschaft
mbH, EFM-Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH,
and CAP Flughafen München Sicherheits-GmbH,
with €0.6 million in total.
52
At €304.4 million, equity was lower by €54.1
million, the amount of the net loss sustained in
fiscal 2004. Shareholder loans remained unchanged year on year at €1.28 billion.
Provisions increased by 3.7 percent to €173.3
million in comparison with 2003. Provisions for
trade tax were raised by €38.5 million. (Due to
differences between the figures prepared for
income tax and financial reporting purposes,
these provisions for the first time included €28.4
million for deferred trade tax and €10.1 million
for trade tax from prior years.) At the same time,
due to the advanced stage of billing for Terminal
2’s infrastructure, €33.5 million in provisions for
construction work not yet invoiced were reversed and allocated in 2004.
Liabilities in fiscal 2004 were €11.2 million lower
at €394.8 million. The year-on-year decrease was
due almost entirely to a reduction of €11.0 million in payables to banks.
Under the terms of a contractual agreement
governing the utilization of supply and disposal
services, Terminal 2’s real-estate company was
obligated to pay construction cost subsidies for
installations owned by Flughafen München
GmbH. The deferred income item of €50.0 million formed in fiscal 2003 was supplemented in
2004 with €10.6 million in deferred income for
water and wastewater; at the same time, there
were writebacks of €3.7 million.
To minimize possible financial damage, Flughafen München GmbH has insurance covering key
areas of liability risk and potential damages. The
risk covered is limited to an appropriate maximum sum in each case.
Capital investments
We do not regard the Lufthansa Star Alliance’s
takeover of SWISS as a threat to our position as
the second major hub in Germany; rather, we
believe we will benefit from the Alliance extending its catchment area.
After a phase of heavy investment a year earlier,
mainly in connection with the construction of
Terminal 2, Flughafen München GmbH’s capital
spending was much lower in 2004.
Additions of €17.8 million to tangible assets
mainly consisted of €3.4 million spent on extending the cargo building for subsidiary Cargogate, and remodeling work on the departure
lounges in modules C and D of Terminal 1 (with
€2.1 million in assets not yet finished). Flughafen München GmbH also spent €12.3 million on
ongoing operations and on additional investments in Terminal 2.
Risks
Flughafen München GmbH’s system of risk
management is designed to identify and gauge
potential risk facing its companies and covers all
of the company’s operative and strategic business processes. 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
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.
Risk information largely centers on assessments
of market and business risk, legal risk, risk associated with the operation of the airport (e.g., air
accidents or terrorist incidents), and risk associated with subsidiaries.
Outlook
We will continue to pursue our strategy of
steadily and systematically developing Munich
Airport as a leading European aviation hub. We
have set a clear course for the future with the
construction of Terminal 2, operated jointly with
our strategic partner Deutsche Lufthansa AG.
We have created the right conditions in which to
expand Munich Airport into a high-performance
hub airport serving a worldwide network of
routes.
In the European traffic sector, Munich Airport
already has an exceptionally strong offering,
comparable with that of any other major European hub. Additions are planned for a number of
segments and will be initiated through a range
of focused marketing activities.
Other efforts to strengthen Munich’s role as a
hub center primarily on the future development
of intercontinental traffic. In 2004, the number of
intercontinental flights at the airport increased
27 percent year on year, causing passenger
volumes on long-haul routes to grow at a rate of
more than 40 percent.
53
Management’s review of fiscal 2004
Further additions of frequencies and new routes
to places like Washington, Chicago, Calgary,
Vancouver, Beijing, Mahé (Seychelles), and
Mauritius are planned for 2005. For the years
thereafter, our marketing efforts will focus on
further strengthening long-haul traffic and, thus,
Munich’s role as a transfer airport. FMG’s joint
venture with DLH offers provides an excellent
basis for this.
Following on from the expansion work on Terminal 1’s modules C and D, we will modernize
the common user lounges and expand the
hospitality and retail offerings during 2005. This
will create an opportunity for Munich Airport to
tailor its service offering to different categories
of traffic and target groups. Terminal 1’s modular
structure puts us in an optimum position to
accommodate the needs and requirements of
low-cost carriers and major airlines that are not
part of the Star Alliance, and to provide packagetour airlines with a suitable infrastructure to support hub-and-spoke operations. Since March 9,
2005, no-frills carrier Hapag-Lloyd Express has
been operating services from Munich to destinations in Sardinia, Sicily, and the north of England.
Munich already covers more than 10 percent of
this traffic segment, and this share will increase
in the future, thanks to the airport’s appeal.
Overall, Munich Airport has succeeded in
strengthening its position substantially among
Europe’s top ten commercial airports as the
fastest growing hub, and with its two highly
modern and attractive terminals and optimized
connecting times it is ideally equipped to compete strongly in the international arena.
Besides redefining strategic goals for the aviation sector, FMG has also set itself new objectives in the non-aviation sector. Our aim is to
greatly increase the profit volume contributed by
real estate, retail and services through a range
of initiatives designed to boost not just earnings
performance but also Munich Airport’s appeal
for passengers and other airport user groups.
54
Realignment of our organizational structure from
October 1, 2004, based on business divisions
and business units and a widening of the entrepreneurial responsibility carried by managers
heading these divisions and units will promote a
greater focus on business and earnings within
the company and its subsidiaries.
Parallel to refining our business segment and
corporate strategies and restructuring our organization, we are concentrating our efforts on
boosting earnings growth. Our M-Power project,
which comprises a large number of initiatives
spanning all company units, will enable us to
operate at a profit much sooner than expected
(by 2007 at the latest) and will substantially
improve our earnings situation in the years that
follow.
The successes that we have achieved to date are
not just much greater than originally targeted,
they also show that the airport is well on its way
to achieving its goal of becoming Europe’s most
attractive and efficient hub by the year 2010.
Munich, June 3, 2005
Dr. Michael Kerkloh
Walter Vill
Peter Trautmann
Annex
I. General notes and information on
the year-end accounts
1 Accounting and valuation principles
The year-end accounts as at December 31, 2004,
were prepared in accordance with statutory
financial reporting requirements for large corporations and for limited liability companies. The
income statement was prepared according to the
total cost method. The accounting and valuation
principles are the same as those applied in fiscal
2003 with the exception of the changes noted
below in connection with writedowns.
Minor-value assets are written off in full in the
year in which they are added.
3 Investments
Long-term investments are stated at their original cost.
Low-interest employee loans are stated at their
nominal value at the balance-sheet date.
2 Tangible and intangible assets
4 Current assets
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. Movable
items of plant and office equipment, which until
December 31, 2003, were generally written down
according to the declining balance method, are
now written down as per the straight-line
method, effective January 1, 2004. This change
had no significant effect on the year-end results
for fiscal 2004. Due the sale of land in fiscal
2004, €0.3 million were booked as a special
reserve item as per Section 6b of the German
Income Tax Code (EStG). At the same time, €0.5
million were withdrawn from the prior reserve
and assigned to two newly purchased plots of
land and a building.
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.
In 2004, the difference between the additional
depreciation reported in the accounts prepared
for tax purposes and the additional depreciation
reported in the accounts prepared for financial
reporting purposes totaled €18.6 million. As per
Section 7, Paragraph 1 of the Income Tax Code,
this pertains to buildings which constitute operating business assets but which are non-residential in character. For the most part these are
buildings belonging to the passenger handling
facilities.
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.
5 Provisions
Provisions for pensions are valuated according
to their actuarial value at a 6% rate of interest
and according to 1998 tables produced by Dr.
Klaus Heubeck. Other provisions, including taxation provisions, are allocated on the basis of
sound business judgment. All identifiable risks
and uncertain obligations were taken into
account.
Due to new statutory requirements effective
January 1, 2004, affecting writedowns of movable assets, additions to assets are written down
on a monthly basis.
55
Annex
Due to differences in the treatment and valuation of accounting income and taxable income,
we are required to report deferred tax liabilities.
To reflect changes in long-term planning, the
company for the first time made a €28.4 million
provision for deferred tax liabilities as part of
overall trade tax provisions of €38.5 million in
fiscal 2004. Other significant provisions include
€24.6 million for conditionally paid landing fees,
€15.0 million as a contingency for rental losses,
€13.5 million for marketing activities, and €11.2
million for settlement backlogs and future obligations in connection with partial retirement
arrangements.
In addition, provisions of €10.1 million and €7.7
million respectively were made to cover prior
years’ trade tax liabilities, residual vacation pay,
and overtime and flextime compensation.
Other key provisions include €5.5 million for
outstanding invoices and neglected maintenance
obligations, €4.6 million for cleanup and remedial work following water damage in the central
area, €4.4 million for anticipated losses in connection with interest swap transactions, and
€3.6 million for the possible reclamation of permission fees.
6 Liabilities
Liabilities are valuated at the respective amounts
repayable. Liabilities for annuity payments are
stated at their cash values.
II. Notes and information on the balance sheet
1 Changes in non-current assets
Acquisition and production costs
Jan. 1, 2004
Additions
Retirements
Reclassifications
Dec. 31, 2004
€
€
€
€
€
16,778,207.72
859,997.67
- 216,966.67
7,960.00
17,429,198.72
16,778,207.72
859,997.67
- 216,996.67
7,960.00
17,429,198.72
Intangible assets
1. Franchises, intellectual property,
and similar rights and assets
Tangible assets
1. Land and buildings
2,554,513,627.47
1,596,661.61
- 5,307,284.02
3,664,439.61
2,554,467,444.67
2. Technical equipment and
machinery
1,057,131,004.34
2,515,660.08
- 10,501,039.99
376,103.92
1,049,521,728.35
167,752,429.18
4,843,718.37
- 3,475,123.95
531,375.69
169,652,399.29
11,788,912.44
8,816,855.42
- 7,276.69
- 4,579,879.22
16,018,611.95
3,791,185,973.43
17,772,895.48
- 19,290,724.65
- 7,960.00
3,789,660,184.26
19,537,562.32
12,562.06
0.00
0.00
19,550,124.38
802,699.07
122,500.00
0.00
0.00
925,199.07
0.00
0.00
0.00
0.00
0.00
3. Other equipment, plant
and office equipment
4. Construction in progress and
advances on fixed assets
Financial assets
1. Investments in
subsidiaries
2. Investments
3. Non-current marketable
securities
4. Other loans
56
863,269.74
80,000.00
- 144,381.19
0.00
798,888.55
21,203,531.13
215,062.06
- 144,381.19
0.00
21,274,212.00
3,829,167,712.28
18,847,955.21
- 19,652,072.51
0.00
3,828,363,594.98
Accumulated depreciations
Book values
Jan. 1, 2004
Additions
Retirements
Reclassifications
Dec. 31, 2004
Dec. 31, 2004
Dec. 31, 2003
€
€
€
€
€
€
€
14,402,048.92
1,392,954.99
- 216,966.67
0.00
15,578,037.24
1,851,161.48
2,376,158.80
14,402,048.92
1,392,954.99
- 216,966.67
0.00
15,578,037.24
1,851,161.48
2,376,158.80
773,569,181.93
45,463,481.83
- 40,182.87
320,040.15
819,312,521.04
1,735,154,923.63
1,780,944,445.54
745,828,547.79
39,844,695.36
- 4,180,532.44
- 313,017.37
781,179,693.34
268,342,035.01
311,302,456.55
143,150,348.40
10,559,28.,67
- 3,322,358.53
- 7,022.78
150,380,254.76
19,272,144.53
24,602,080.78
0.00
0.00
0.00
0.00
0.00
16,018,611.95
11,788,912.44
1,662,548,078.12
95,867,464.86
- 7,543,073.84
0.00
1,750,872,469.14
2,038,787,715.12
2,128,637,895.31
0.00
0.00
0.00
0.00
0.00
19,550,124.38
19,537,562.32
0.00
0.00
0.00
0.00
0.00
925,199.07
802,699.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
798,888.55
863,269.74
0.00
0.00
0.00
0.00
0.00
21,274,212.00
21,203,531.13
1,676,950,127.04
97,260,419.85
- 7,760,040.51
0.00
1,766,450,506.38
2,061,913,088.60
2,152,217,585.24
57
Annex
2 Currency conversion
7 Other financial obligations
Foreign-currency receivables and liabilities are
booked at the respective buying or selling rate
and converted to the less favorable rate on the
balance-sheet date.
Existing real-estate lease contracts are expected
to incur costs of around €47.1 million in 2005.
The burden through to the end of the basic lease
term in 2020 will amount to €471.7 million.
3 Share ownership
(see table facing)
Holdings in subsidiaries and associated companies are stated at cost.
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 such operations. There are also additional obligations for environmental protection
measures and the honoring of public-law requirements.
4 Liabilities
(see table facing)
8 Derivative financial instruments
5 Net sales/earnings/expenses
Net sales of €628.4 million comprise €355.2 million from the servicing of air traffic (including
€224.3 million in airport fees and €130.9 million
in ramp service fees) and €273.2 million from
licenses, rents, leases, and other sources. The
latter include €10.1 million from the sale of
power (2003: €8.9 million). Power sales accounted for 1.6% (2003: 1.5%) of total net sales and
are of just minor significance.
Other operating income includes €10.0 million
from the reversal and allocation of provisions.
Additional operating income items include €6.2
million in transferred charges for vacant capacity
in Terminal 1, €3.7 million for the provision of
the utility infrastructure for Terminal 2, and €1.2
million from long-term building rights.
In fiscal 2004, Flughafen München GmbH’s materials costs included a charge of €68.1 million for
capacity provisioning from the operation of
Terminal 2.
6 Contingencies
To cover and secure all claims in connection
with MediCare Flughafen München Medizinisches Zentrum GmbH’s current and future liabilities to the Kreis- und Stadtsparkasse ErdingDorfen bank, Flughafen München GmbH posted
surety of €250,000 in 2004.
Following are derivative financial instruments
employed by Flughafen München GmbH in
2004:
– 2 payer swaps with a volume of €50 million at
a negative market value of €7.8 million at
December 31, 2004
– 3 receiver swaps with a volume of €80 million
at a positive market value of €2.5 million at
December 31, 2004, and
– 3 caps with a volume of €80 million and a
negative market value of €0.8 million at
December 31, 2004
From the airport operator’s perspective, these
provide the following vales.
A valuation unit of €22.0 million was formed for
the two aforementioned payer swaps so that the
swaps do not impact on the balance sheet. A
provision of €4.4 million was formed for anticipated losses for the swap volume not covered
by the valuation unit.
With regard to the three receiver swaps and the
three caps, a valuation unit was formed so that
there was no cause to report them in the balance
sheet.
Moreover, three loans in existence at the balance sheet date that were originally taken out in
Japanese yen were transferred into euros by
means of cross-currency swaps (total volume:
€60.4 million).
9 Net result
The executive board proposes carrying forward
the net loss for the year of €54.109 million.
58
Details of share ownership
Seat
Share of
Capital
Result for
capital
stock
the year
%
€ thousand
€ thousand
13
1,8131
eurotrade
Flughafen München Handelsgesellschaft mbH
Munich
74.0
Allresto
Flughafen München Hotel und Gaststätten GmbH
Munich
100.0
26
1781
Bayern Facility Management GmbH
Munich
49.0
376
126
aerogate München
Gesellschaft für Luftverkehrsabfertigungen mbH
Munich
100.0
779
181
Cargogate Flughafen München
Gesellschaft für Luftverkehrsabfertigung mbH
Munich
100.0
511
161
CAP Flughafen München Sicherheits-GmbH
Freising
76.1
242
141
EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH
Freising
49.0
2,909
1,324
FMV – Flughafen München
Versicherungsvermittlungsgesellschaft mbH
Freising
100.0
26
1801
FM Terminal 2
Immobilienverwaltungsgesellschaft mbH & Co oHG
Freising
60.0
25,000
(6,067)2
AeroGround
Flughafen München Aviation Support GmbH
Munich
100.00
250
1381
Oberding
51.0
(168)
4
Radiologisches Diagnostikzentrum
München Airport GmbH
Oberding
20.0
(63)
85
Augsburger Flughafen Betriebs-GmbH
Augsburg
50.0
59
7
Terminal 2 Betriebsgesellschaft mbH & Co oHG
Oberding
60.0
3,025
(22,129)2
Freising
100.0
15,025
(3,671)1
MediCare
Flughafen München Medizinisches Zentrum GmbH
Terminal 2 Holding GmbH
1 Profit transfer agreement (pre-transfer)
2 Losses transferred on account of shareholders' agreement
Liabilities table
December 31, 2004
December 31, 2003
Residual term
Liabilities to banks
Trade accounts
payable
up to 1 year
1 to 5 years
over 5 years
€
€
€
€
€
€
316,798,109.72
62,343,194.86
148,281,726.74
106,173,188.12
327,752,746.83
84,497,167.35
1,737,011.36
0.00
20,364,827.65
18,504,995.22
up to 1 year
20,562,676.51
18,825,665.15
Liabilities to associated
companies and subsidiaries
29,161,023.28
28,849,314.38
311,708.90
0.00
35,983,360.16
35,671,651.26
Other liabilities
28,246,446.59
12,224,727.10
1,501,233.85
14,520,485.64
21,856,659.50
6,338,138.13
(14,303,088.33)
(273,239.11)
(14,029,849.22)
(0.00)
(14,303,088.33)
(273,239.11)
(3,759,056.60)
(3,759,056.60)
(0.00)
(0.00)
(3,324,591.06)
(3,324,591.06)
of which to insurance companies
of which in taxes
of which in social welfare
(4,949,597.39)
(4,949,597.39)
(0.00)
(0.00)
(115,050.36)
(115,050.36)
394,768,256.10
122,242,901.49
151,831,680.85
120,693,673.76
405,957,594.14
145,011,951.96
59
Annex
III. Additional information
1 Executive board
Members of the executive board:
Dr. Michael Kerkloh
President and Chief Executive Officer
Personnel Industrial Relations Director
Walter Vill
Vice President and Chief Financial Officer
Peter Trautmann
Chief Operating Officer
2 Supervisory board
Robert Scholl
Director-General,
Federal Ministry of Transport, Building and
Housing
(supervisory board member from July 29, 2004)
City of Munich
Christian Ude
Chief Mayor, City of Munich
Dr. Reinhard Wieczorek
Councilor, City of Munich
Members of the supervisory board:
Employee representatives
Prof. Kurt Faltlhauser
Minister of State,
Bavarian State Ministry of Finance, Munich,
Chairman
Josef Bals
Cook
(supervisory board member until July 29, 2004)
Oliver Gebauer
Personnel management clerk
(employee representative)
Vice chairman
(supervisory board member until July 29, 2004)
Thomas Bihler
Clerical employee
Free State of Bavaria
Georg Herrmann
Certified aircraft handler
Full-time works councilor
(supervisory board member until July 29, 2004)
Hans Spitzner
Undersecretary
Bavarian State Ministry for Economic Affairs,
Transport and Technology
Klaus Weigert
Director-General,
Bavarian State Ministry of Finance, Munich
Josef Poxleitner
Director-General,
Board of Building and Public Works
in the Bavarian State Ministry of Home Affairs
Federal Republic of Germany
Dr. Dieter Knoll
Ministerial councilor,
Federal Ministry of Finance,
Bonn
Peter Keidel
Director-General,
Federal Ministry of Transport, Building and
Housing
(supervisory board member until July 22, 2004)
60
Heinrich Birner
Director of the ver.di labor union,
Munich region
Orhan Kurtulan
Certified aircraft handler
Full-time works councilor
Otto Siegl
Clerical employee
Gerhard Halamoda
Managing director, Allresto
(supervisory board member until July 29, 2004)
Hans-Joachim Bues
Clerical employee
(supervisory board member from July 29, 2004)
Anna Müller
Clerical employee
(supervisory board member from July 29, 2004)
Ralf Krüger
Works council chairman
(supervisory board member from July 29, 2004)
Willy Graßl
Certified aircraft handler
(supervisory board member from July 29, 2004)
3 Remuneration of and loans granted to the
supervisory and executive boards
Remuneration of the supervisory board totaled
€17,200.
separate balance sheets and income statements
for their power generation, transmission and
distribution activities and for their non-power
activities.
Former members of company management
received remuneration totaling €473,900.
Provisions of €6.404 million were formed for
future pension payments and accrued pension
rights of surviving dependants.
Given that revenue from power business
accounted for just 1.6 percent of total sales
(2003: 1.5 percent), we have chosen not to report
separately on our power activities, just as a year
earlier, as these are deemed not to be significant.
Executive board members’ remuneration totaled
€722,400 in fiscal 2004.
Munich, June 3, 2005
4 Employees
Dr. Michael Kerkloh
As per Section 267, Paragraph 5 of the German
Commercial Code, the workforce comprised, on
average, 2,045 salaried employees, 9 casual
workers, 2,147 wage employees and 607
temporary workers in fiscal 2004. In addition,
104 apprentices were undergoing vocational
training with the company.
Walter Vill
Peter Trautmann
5 General
Section 9 of Germany’s Energy Industry Act
(EnGW), which passed into law on April 29, 1998,
requires public utility companies to draw up
61
62
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 yearend accounts as per December 31,
2003, and the report on the economic development and position of Flughafen München GmbH
and its group of companies presented by executive management have been audited and approved by Deloitte & Touche GmbH, 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 Flughafen 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 2004, Director-General Peter Keidel and
employee representatives Josef Bals, Oliver
Gebauer, Gerhard Halamoda and Georg Herrmann left the supervisory board. The board
wishes to thank its members who departed in
2004 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
2004.
Munich, July 26, 2005
Flughafen München GmbH
The supervisory board
Prof. Kurt Faltlhauser
Chairman
63
Flughafen München GmbH, Munich
Balance sheet as at December 31, 2004
Assets
€
Dec. 31, 2004
2003
€
€ thousand
A. Fixed assets
I. Intangible assets
Franchises, intellectual property,
and similar rights and assets
2,376
1,851,161.48
1,851,161.48
2,376
II. Tangible assets
1. Land, rights similar to land, and buildings,
including buildings on property
owned by others
1,735,154,923.63
1,780,945
268,342,035.01
311,302
3. Other equipment, plant and
office equipment
19,272,144.53
24,602
4. Construction in progress and advances on fixed assets
16,018,611.95
2. Technical equipment and machinery
11,789
2,038,787,715.12
2,128,638
III. Financial assets
1. Investments in subsidiaries
19,550,124.38
19,538
2. Investments
925,199.07
803
3. Other loans
798,888.55
863
21,274,212.00
21,204
2,061,913,088.60
2,152,218
B. Current assets
I. Inventories
1. Substitute plots of land
2. Raw materials and supplies
28,298,095.45
27,167
4,398,395.48
5,289
32,696,490.93
32,456
II. Receivables and other current assets
1. Accounts
receivable
17,399,510.33
22,491
2. Amounts due from
subsidiaries
79,261,007.50
36,371
3. Amounts due from associated
companies
1,871,490.06
529
4. Other current assets
of which €0.00 due from shareholders
(2003: €9,360,022.06)
9,783,423.72
13,829
108,315,431.61
III. Liquid funds
C. Prepaid expenses
Total assets
64
73,220
13,003,773.97
10,693
154,015,696.51
116,369
583,780.64
432
2,216,512,565.75
2,269,019
Liabilities
€
Dec. 31, 2004
2003
€
€ thousand
A. Capital stock
I.
Subscribed capital
II. Capital reserves
III. Earnings reserves
Other reserves
IV. Balance-sheet loss
306,776,000.00
306,776
102,258,376.24
102,258
596,812.29
597
- 105,260,785.23
- 51,152
B. Conditionally repayable shareholder loans
C. Special reserve items (Section 6b, Income Tax Code)
304,370,403.30
358,479
1,276,226,461.37
1,276,226
9,558,432.39
9,663
D. Accrued liabilities
1. Provisions for pensions
10,289,689.00
2. Provisions for taxes
38,547,000.00
0
124,418,324.19
156,822
3. Other provisions
10,308
173,255,013.19
167,130
E. Liabilities
316,798,109.72
327,753
2. Trade accounts payable
20,562,676.51
20,365
3. Liabilities to subsidiaries
26,453,260.85
35,737
2,707,762.43
246
1. Liabilities to banks
4. Liabilities to associated
companies
5. Other liabilities
of which €3,759,056.60 in taxes
(2003: €3,324,591.06)
of which €4,949.597.39 in social welfare
(2003: €115,050.36)
F. Deferred income
Total liabilities
28,246,446.59
21,857
394,768,256.10
405,958
58,333,999.40
51,563
2,216,512,565.75
2,269,019
65
Flughafen München GmbH, Munich
Income statement for the fiscal year
from January 1 to December 31, 2004
€
1. Net sales
2. Other capitalized labor, overheads and material
3. Other operating income
2004
2003
€
€ thousand
628,386,138.18
593,270
617,853.55
957
26,130,394.94
29,043
655,134,386.67
623,270
4. Materials costs
a) Supplies, raw materials
and merchandise
b) Purchased services
- 33,303,722.78
- 31,361
- 157,588,803.04
- 128,251
- 190,892,525.82
- 159,612
5. Personnel costs
a) Wages and salaries
b) Social security, pension costs
and support
of which €12,920,044.11 for pension plans
(2003: €12,543,802.68)
- 173,279
- 171,924,750.73
- 47,272
- 48,948,844.87
- 220,873,595.60
6. Depreciation and amortization on intangible
and tangible assets
7. Other operating expense
8. Income from investments
of which €140,083.44 from associated companies
(2003: €96,560.67)
9. Income from profit transfer agreements
10. Expense from loss transfers
11. Income from financial assets
12. Other interest and similar income
of which €1,624,864.28 from associated companies
(2003: €1,571,811.15)
13. Interest and similar expense
of which €216,180.68 from associated companies
(2003: €313,679.88)
- 220,551
- 97,260,419.85
- 98,175
- 129,550,933.94
- 137,087
- 638,577,475.21
- 615,425
16,556,911.46
7,845
587
434,083.44
2,324,724.54
617
- 17,063,411.45
- 40,186
33,218.02
34
3,102,879.35
1,990
- 21,123
- 19,934,358.00
- 31,102,864.10
- 58,081
14. Results of ordinary operations
- 14,545,952.64
- 50,236
15. Taxes on earnings
- 38,547,000.00
- 78
- 1,015,911.06
- 838
17. Net loss for the year
- 54,108,863.70
- 51,152
18. Loss carried forward from the previous year
- 51,151,921.53
0
- 105,260,785.23
- 51,152
16. Other taxes
19. Balance-sheet loss
66
Publisher:
Flughafen München GmbH
Finance and Controlling
Tel.: +49 89 975-00
Fax: +49 89 975-3 50 06
Concept/editor:
Corporate Communications
Dr. Reingard Schöttl
Internal Communications and Publications
Flughafen München GmbH
Postfach 23 17 55
85326 Munich
Germany
www.munich-airport.de
Photographs:
ACA-Design
Alex Tino Friedel
Dr. Werner Hennies
Martin Ley
Herbert Stolz
Zefa Images
Design:
Pantos Werbeagentur GmbH, München
Printing:
Alfred Aumaier GmbH, Unterhaching