Macroeconomic and sector-specific environment
- Strong domestic consumption stabilizes growth
- German air traffic registers growth – but falls short compared with other countries
- Retail trade – is undergoing structural change and is exposed to geopolitical tensions
- Catering – at the previous year's level
- Hotel – further strong recovery posted
- Advertising sector – sentiment remains cautiously optimistic
- Parking areas – shifts in the modal split
- Real estate – registers high demand with a further fall in supply
Both national and international economic growth are crucial for an international air traffic hub such as Munich Airport.
Growth in the global economy in 2016 failed to meet expectations once again. Current projections suggest global gross domestic product (GDP) of between 2.3 percent (World Bank, Global Economic Prospects, January 2017) and 3.1 percent (International Monetary Fund, World Economic Outlook, January 2017). These figures are up to 0.6 percentage points lower than those in forecasts published at the beginning of the year. However, the generally poor growth in the global economy picked up slightly in the second half of 2016.
The reason for the subdued growth compared with earlier years is to be found in the fact that the burgeoning emerging markets are advancing more slowly than they were a few years ago. For example, current projections for China for 2016 stand at 6.7 percent, which implies a marked fall compared with the double-digit growth rates of previous years. Crisis-stricken countries, such as Russia and Brazil, where GDP has fallen by 0.6 percent and 3.5 percent respectively, are currently depressing global economic growth. However, there were signs of the recessionary trends easing in both countries in the second half of 2016 thanks to moderate increases in commodity and crude oil prices.
Essentially, the positive development of the previous year continued in industrialized countries. Accordingly, economic output in the USA expanded strongly in the third quarter (+0.8 percent) following relatively moderate development in the first half. This was largely driven by higher inventory investment, growth in exports and continuing strong private consumption. Despite the Brexit vote, the UK continued to grow in 2016 (+2.0 percent). The feared negative consequences have not materialized so far. In Japan, the government supported economic development through a stimulus package launched at the beginning of the year, among other things, meaning that gross domestic product increased by 0.9 percent overall.
Economic growth in selected destinations worldwide
Source: IMF, World Economic Outlook, January 2017
The recovery in the eurozone continued in the fiscal year. The current projection by the International Monetary Fund assumes growth of 1.7 percent for 2016 (IMF, World Economic Outlook, January 2017). Growth is essentially supported by private and public consumption, while growth in investment was only negligible recently. Foreign trade only provided a little growth stimulus. The extraordinarily expansionary monetary policy of the European Central Bank is still making a major contribution to the upturn in the eurozone. The economic situation in southern European countries has consolidated.
Economic growth in selected destinations throughout Europe
Source: IMF, World Economic Outlook, January 2017
At 1.7 percent, growth in gross domestic product in the Federal Republic of Germany was just as strong as in the previous year. Here, growth was driven by private consumption and public expenses as well as higher than average construction investment. The positive trend in consumer and public expenses can be attributed to the favourable situation on the labor market (unemployment rate of 6.1 percent), low inflation (0.5 percent) and substantial immigration in recent years. Extraordinarily low interest rates are also driving private consumption and, in particular, construction investment. In 2016, private consumption posted a similar rate of increase (around 2 percent) to that of the previous year. Construction investment and public expenses increased by just under 3 percent and around 4 percent respectively. In contrast to this, exports only made a negligible contribution to economic growth in Germany, at only 2.5 percent.
Following the sharp fall in recent years, the oil price bottomed out at below USD 30 per barrel (Brent Crude) in January 2016 and was stable at around USD 45 from spring onwards. Following the announcement by OPEC that it wanted to curb oil production, the crude oil price rose in the fourth quarter of 2016, meaning that it reached USD 57 per barrel in mid-December 2016.
Sector-specific environment for Aviation
According to analyses by the International Air Transport Association (IATA: Air Passenger Market Analysis – December 2016; Air Freight Market Analysis – December 2016), global air travel according to passenger-kilometers grew by 6.3 percent. The key economic indicator airfreight increased by 3.8 percent (freight tonne-kilometers). The increase is driven by the emerging regions in Asia and the Gulf, but also Europe, which ranked third in terms of passenger growth and even first in growth in freight.
The airports that are members of the German Airports Association (ADV) also achieved positive growth rates on average in 2016: passenger volume increased by 3.3 percent, aircraft movements rose by 1.7 percent and cargo throughput (total of airmail and freight) was 3.5 percent up.
Munich Airport registered better growth in movements and cargo throughput than the other German passenger airports in 2016. The percentage change in passenger volume was only slightly down on the German average. Among Europe’s ten largest airports, passenger volume in Munich grew by less than the average rate in 2016. While Amsterdam, Barcelona, Madrid and London-Gatwick achieved very positive rates of change because of new routes operated by the low-cost carriers Ryanair, easyJet, Vueling and Norwegian, the trend was downward at the heavyweights Frankfurt and Istanbul-Atatürk and only modestly positive at the largest European airports London-Heathrow and Paris-Charles de Gaulle. Munich lost two places in the ranking in 2016, lying behind Barcelona and London-Gatwick in ninth place in Europe.
Capacity bottlenecks, strikes and a lack of or insufficient traffic rights between countries are impeding the development of Munich Airport. With the opening of the satellite building for Terminal 2 in April 2016, a key precondition for further growth to meet market demand was met. However, Terminal 1 is clearly being pushed to its limits. The capacity of the security checkpoints in departures/arrivals C was increased in an initial step last year. Planning for further expansion has been expedited but completion is not expected before 2022.
The bottleneck in the runway system still limits expansion at the Munich site significantly. The airport coordinator responsible for awarding slots for take-off and landing regularly confirms that demand for flights at Munich Airport can no longer be met.
In addition, the uncertainty regarding the German Federal Government’s still unpublished air traffic concept and the competition-distorting German aviation tax had a negative impact on the development of Germany as a location. The fact that Lufthansa lets parts of its subsidiary Eurowings operate in Austria shows, for example, how Germany is lagging behind as an aviation location.
Sector-specific environment for Commercial Activities
Thanks to positive economic activity, German retailers also brought in significant revenue growth in 2016. They were expected to achieve between 2.4 and 2.6 percent more revenue through their tills than a year ago, according to Federal Statistical Office estimates based on data for the first eleven months. If price increases are excluded, the increase was between 1.8 and 2.1 percent following growth of around 2.6 percent in the previous year.
Sales of cosmetics posted particularly strong growth again, rising 5.9 percent. Sales in the fashion business stagnated (-0.9 percent). However, sales of watches and jewellery posted sharp falls year on year (-4.7 percent).
According to the German Retail Association (HDE), the retail trade is doing well, as the positive situation on the labor market and rising wages are currently making people more willing to spend.
The German catering sector closed fiscal year 2016 with low real growth of around 0.9 percent year on year. Price-adjusted revenue from sales in food outlets stagnated at the previous year’s level, while sales in drinks outlets posted a slight fall of 1 percent.
The German hotel sector also continued to see a marked recovery in business in fiscal year 2016. After revenue growth of 2.1 percent in the previous year, it reported real growth of 1.8 percent in 2016. The number of overnight stays rose by 2.8 percent (2015: 3.4 percent) and average occupancy increased by 1.6 percentage points to 61.8 percent.
Advertisers increased their total investment year on year. Market share in the Out-of-home segment, to which the advertising at the airport is attributable, also continued to grow in 2016. Players such as the Digital Media Institute (DMI), of which Munich Airport is also a member, are pursuing the dual tasks of making this type of advertising simpler for agencies to book and making proof of its effectiveness more robust for advertisers.
Shifts in the modal split, which reflects the manner in which passengers travel to the airport, as well as changes in the number of visitors had different impacts on the Parking business unit. The car rental business benefited from increased passenger and visitor volume, whereas displacement effects to other methods of traveling to the airport, particularly to the suburban train, led to disproportionately low growth.
Sector-specific environment for Real Estate
The Munich area remains an attractive market for office property. According to the market report of Colliers International Deutschland Holding GmbH, demand for office space in Munich remains strong. Consequently, space increased by 3.0 percent year on year to a total of 780,300 square meters.
The vacancy rate developed just as positively, falling by one percentage point to 3.0 percent. At the end of the fiscal year, at 688,200 square meters, there was some 185,000 square meters less available to rent short-term than a year ago.
The average rent in the Munich urban area has increased by around 2.0 percent to EUR 17.70/m². The prime rent even rose by 5.0 percent to EUR 35.00/m².
While tenants have ever more difficulty in finding suitable space and therefore have to compromise in terms of the location or amenities, landlords are imposing higher rents or fewer incentives in many cases. The sector report surmises that the economic situation will remain stable and that Munich-based companies will continue to expand. Accordingly, an above-average figure is expected for 2017, with predicted take-up at 700,000 square meters.
Course of business
- Opening of the satellite building
- Acquisition of Acciona
- Sale of real estate
- New passenger record and increase in aircraft movements
- Retail trade – facing major challenges
- Catering – on path to success
- Hotel – high occupancy rates once again
- Parking areas – demand increases with passenger volume
- Advertising sector – increase resulting from the opening of the satellite building
- Real estate – stagnation at high level
Key events in the past fiscal year
The satellite building was commissioned as an extension of the existing Terminal 2 without separate landside access on April 26, 2016. The satellite building will expand the handling capacity in Terminal 2 by 27 passenger boarding bridges and eleven million passengers per year and will consequently guarantee long-term growth opportunities. It is connected to Terminal 2 via an automatic public transport system.
With regard to the expansion of business outside the airport campus, the acquisition of Acciona and HSD was a major event in fiscal year 2016. Acciona has a handling licence for Berlin-Tegel Airport. HSD is a handling service provider for Acciona. Acciona was merged with AeroGround Berlin retroactively to January 1, 2016. AeroGround Berlin therefore has handling licences for Berlin-Schönefeld Airport and Berlin-Tegel Airport and provides ground handling services at both locations with the selective involvement of its subsidiary HSD.
As of December 31, 2016, Munich Airport has real estate outside the campus, which is shown with a book value of T€ 13,343 as «investment property» or «asset held for sale» because of its «uncertain use». The real estate was largely acquired in relation to a third runway or as real estate to be exchanged for future real estate purchases. In fiscal year 2016, Munich Airport sold real estate from this with a book value of T€ 1,692. A profit of T€ 27,264 was achieved as a result, which was shown under other operating income.
There were no other events that had a material impact or will have a material impact on the business development of Munich Airport in the fiscal year.
In fiscal year 2016, Munich Airport achieved a new passenger record, with 42.3 million passengers (+3.1 percent), which is impressive confirmation of the unabated growth in demand in Munich.
Munich Airport traffic figures
|Aircraft movements||394,430||379,911||14,519||3.8 %|
|Passengers in millions||42.3||41.0||1.3||3.1 %|
|Cargo handling in tonnes||375,121||336,162||18,755||5.3 %|
The number of aircraft movements grew disproportionately sharply by 3.8 percent to 394,430. Key drivers of this growth included Transavia Airlines, but also the Lufthansa partners bmi regional and Swiss. However, both aircraft movements and passenger figures were seriously affected by strikes in 2016. In total, 3,000 flights were cancelled and around 330,000 passengers were affected by the strike.
Aircraft movements at Munich Airport
The number of seats offered increased to 153 seats per flight. Average occupancy fell slightly by 1.5 percent to 75.1 percent; this equates to 115 passengers per flight on average. Supply increased sharply as a result of new low-cost connections. However, the additional supply of seats could not be sold completely in the market.
Both originating and transfer traffic were key factors in traffic growth. At 27.1 million passengers, Munich now has more originating passengers (passengers who are not transferring) than Frankfurt Airport or all other airports in the German-speaking area. The proportion of transfer passengers remains unchanged, at 36 percent, on the previous year.
Demand for German domestic flights remained stable at 9.6 million passengers. This implied a slight increase of around 43,000 passengers (+0.5 percent). German domestic movements increased by 2.2 percent or around 2,000 to 89,000 take-offs and landings. Continental traffic posted significant growth: aircraft movements increased to around 254,000, which equates to a rise of 10,000 flights or 4.3 percent. Just under a million more passengers (25.8 million passengers) were transported than in the previous year. This equates to an increase of 3.8 percent.
However, long-haul traffic grew most sharply in relative terms. 6.8 million passengers took intercontinental flights, 320,000 more than in the previous year (+5.0 percent). Long-haul movements also rose by 5.5 percent (1,600 more flights). In total, there were over 31,000 long-haul flights at Munich Airport in 2016.
Passenger numbers at Munich Airport
Measured in growth rates, airfreight was also the most successful traffic segment in 2016. A new record result was achieved with an increase of 18,386 tonnes to 355,950 tonnes or 5.4 percent.
With a share of over 80 percent, the quantity of freight loaded on passenger aircraft, known as belly-hold cargo, was the most important traffic segment. The additional load capacity offered on the basis of more frequent flights and new connections met with corresponding demand, meaning that an increase of 4.1 percent or 10,722 tonnes to 272,441 tonnes was achieved year on year. Additional freight capacity offered through new entries or increases in frequency and higher load values for existing connections resulted in the highest freight-only result ever recorded for Munich Airport. The volume in this segment increased by 11.5 percent or 6,388 tonnes to 62,056 tonnes.
At 19,171 tonnes, the amount of airmail transported by air exceeded the previous year's level by 2.0 percent. In total, the cargo throughput (total of airfreight and airmail including transit items) increased by 5.3 percent to 375,121 tonnes.
Traffic figures for 2016 as a comparison
|Aircraft movements (total traffic)||1.7||3.8|
|Passengers (commercial traffic)||3.3||3.1|
|Cargo (airfreight and airmail)||3.5||5.3|
Despite pleasing growth, Munich slipped two places in the ranking of the busiest European airports according to passenger numbers, ranking ninth in 2016. It ranked seventh in aircraft movements (Airports Council International, as of January 2017).
The course of business in the last fiscal year in the Commercial Activities business unit was shaped by the satellite building, which was opened in April 2016. This provided an additional 7,000 square meters of commercial space that can be used for retail trade, services and catering. Munich Airport’s Group companies operate their own retail or catering businesses on around 70 percent of the total area.
As in the previous year, Munich Airport’s retail trade could not match the buoyant figures of previous fiscal periods in 2016 either. Overall, the fiscal year ended with stagnating revenues. Despite the increase in passenger volume, revenue per passenger grew at a slower rate. There were significant falls in business with high-spending Russian and Chinese passengers. Although the number of passengers registered under Russian traffic at Munich Airport was up on the previous year in 2016, the trade sanctions and new import restrictions as well as significant foreign exchange losses had an adverse impact on consumer behavior. With a slight fall in Chinese passenger volume, the new import restrictions also depressed consumer spending. Accordingly, the average revenues generated with the Russian and Chinese customer group did not match the level of the previous year.
As a result of the Brexit vote, the pound sterling depreciated sharply, which had a direct impact on British passengers’ propensity to buy.
Business with people traveling to Turkey on holiday was also difficult, as passenger numbers fell sharply because of the ongoing risk of terrorist attacks.
A comparison of the Terminals shows that growth in retail revenue at Munich Airport was not uniform. At Terminal 2, revenue was stable year on year despite the satellite building being opened during the year and the associated challenges. The situation at Terminal 1, where revenue was down on the previous year, was different.
Against a backdrop of rising passenger numbers, Munich Airport’s restaurants and bars enjoyed a successful fiscal year. Despite the challenge of commissioning six additional catering units in the newly opened satellite building, catering revenues increased at a faster rate than in the previous year, both in absolute terms and per passenger. Although Terminal 1 and Terminal 2 including the satellite posted growth in revenue, revenue per passenger at Terminal 1 fell somewhat. This is due, among other factors, to the fact that the bars in the security area of Terminal 1 are at the limits of their capacity when wide-bodied aircraft are being handled at high peak frequencies.
The five-star hotel also increased its revenues significantly year on year in the second year following the change of operator. The hotel was also named «Best Airport Hotel Europe» in 2016. The extension containing a larger conference area is due to be commissioned in spring 2017.
The growth in passenger figures in originating traffic had a disproportionately small impact on the parking business. Despite a slight increase in parking transactions, revenue again increased overall with changes in parking behavior and enhanced product categories.
Munich Airport has not yet felt the impact of the increasing pace of the recovery in the advertising sector. The growth in revenue is mainly attributable to the expansion of the offering in the satellite building.
Munich Airport’s real estate business is stagnating at a high level. In fiscal year 2016, there were no new properties generating significant revenue. The difficult competitive situation facing airlines, in particular, meant that the Group was unable to increase rental income on existing properties over and above indexing.
The increase in flight movements also had a positive impact in the Real Estate business unit. Among other items, fueling throughput fees for the use of aviation fuel supply facilities and rental income from hangar space for aircraft rose.
The expansion of the fire station to the north of the site was commissioned in connection with the opening of the satellite building in 2016.
The complete restoration of the pedestrian glass tunnels from the administration building over the motorway and the suburban train railway in the direction of the freight area, which was completed at the end of the year, must be mentioned as one of the major special maintenance measures at the airport. The closures needed had to be arranged in close consultation with the rail and motorway directorate and rail replacement transport organized at times.
Net assets, financial position, and results of operations
- Airport reduces liquidity reserves
- Reserves built up despite repayment of loans
- Operating cash flow is basis of outstanding liquidity
- Opening of the satellite building
- Earnings after taxes rise again
Net assets and financial position
The increase in non-current assets is due to the construction of the satellite building and the eastern power center.
Liquidity reserves at Munich Airport decreased from T€ 212,000 to T€ 12,000 in fiscal year 2016 because of the repayment of the syndicated loan. The cash is held at a number of banks as time deposits and money market transactions with a time of less than one year. They are held under current assets.
The company paid out T€ 30,000 from the previous year’s consolidated profit of T€ 143,333 to shareholders. The remaining amount was retained in fiscal year 2016.
The changes in other liabilities were mainly due to funding. The fall in other current liabilities is mainly due to the repayment of the syndicated loan in the amount of T€ 400,000. Other non-current liabilities rose because the company raised bullet promissory note loans totalling T€ 200,000, which were used to refinance the maturing syndicated loan.
Net assets and financial position
|T€||Dec. 31, 2016||Dec. 31, 2015||Absolute||Relative in %|
|Current assets 1)||142,895||335,476||-192,581||-57.4|
|thereof cash and cash equivalents||6,034||5,323||711||13.4|
|Other non-current liabilities 2)||2,444,537||2,309,976||134,561||5.8|
|Other current liabilities||856,417||1,281,423||-425,006||-33.2|
|1) Including assets classified as held for sale
2) Including financial liabilities resulting from partnerships
The equity ratio has improved primarily because of the retention of the previous year’s income and the reduction in loans as well as drawn credit lines.
|T€||Dec. 31, 2016||Dec. 31, 2015||Absolute||Relative in %|
|of which net profit||146,736||145,690||1,046||0.7|
|of which net profit||4,895||-2,357||7,252||>-100.0|
|Financial liabilities resulting from interests in partnerships||293,561||277,088||16,473||5.9|
|Equity ratio||37 %||34 %||-||-|
The main terms of Munich Airport's current and non-current financial liabilities can be found in the table below:
Non-current loans conditions
|Interest rate in %|
|Method of funding||Currency||Interest rate||Residual debt T€||from||to|
|Financial liabilities resulting from interests in partnerships||EUR||Earnings-based||293,561||-||-|
|Shareholder loans||EUR||Variable/earnings-based||491,913||Base rate plus margin|
|Loans||EUR||Floating-rate||847,300||3-month EURIBOR plus margin|
|(As of December 31, 2016)|
The shareholder loans are available indefinitely and interest is charged on the basis of the base rate plus a margin, if the results and anticipated economic development allow this.
The loans bear customary non-financial covenants, including negative pledges and pari passu clauses. In addition, there are other general conventional agreements concerning interest rate adjustment and repayment in the event of changes in shareholder structure. There are no financial covenants.
Munich Airport uses payer interest rate swaps and currency forwards to hedge against risks arising from interest rate and exchange rate fluctuations. Interest rate hedges are accounted for as a valuation unit.
Hedging transcaction conditions
|Currency||Fixed rate in %||Forward rate in EUR/USD||Underlying transactions|
|Hedge transactions||Notional amount||from||to||from||to|
|Interest payer swaps||754,000||T€||0.28||2.92||-||-||Syndicated loans|
|Foreign currency forwards1)||8,147||T€||-||-||1.10||1.12||Expected transactions|
|1) These hedges are not recognized.
(As of December 31, 2016)
Cash flow statement
Sufficient funds were available from the net cash flow from operating activities in 2016 to ensure the liquidity of the Group in operations. Cash outflows from investing activities mainly arose from the acquisition and production of property, plant and equipment. A negative cash flow arose from financing activities due to distributions to shareholders, loan repayments, and interest payments.
2016 was dominated above all by the opening of the satellite building. The investments were financed through medium- and long-term bank loans, which were valued at T€ 640,000 as of December 31, 2016. In fiscal year 2016, T€ 146,377 was invested in invoiced services, payments on account and outstanding invoices and supplements.
The eastern power center was commissioned on May 1, 2016. It was added to property, plant and equipment in the amount of T€ 31,491.
Additional significant investments relate to the extension to the five-star hotel in the airport’s central area, which was started in the previous year. A conference center and 162 rooms are being added to the hotel. The new east wing has seven floors and a total area of over 8,800 square meters. The new building is connected to the existing hotel with passageways. Munich Airport will invest a total of around T€ 43,200 in the new construction. In fiscal year 2016, T€ 14,946 was capitalized for this purpose on property under construction. Munich Airport will cover the expenditure from its own funds. It is due to open in 2017.
In addition, a large number of investment projects underway in fiscal year 2016 were implemented and continued. This includes investment in converting and upgrading Terminal 1, planning construction measures in the multi-story car parks, and a large amount of replacement work relating to IT and technology.
Results of operations
In fiscal year 2016, Munich Airport's EAT rose by T€ 8,298 to T€ 151,631. The causes of this increase are explained in detail below.
Results of operations
|T€||2016||2015||Absolute||Relative in %|
|Cost of materials||-352,085||-326,599||-25,486||7.8|
|Depreciation and amortization||-239,071||-214,278||-24,793||11.6|
|Financial result 1)||-80,059||-81,533||1,474||-1.8|
|1) This also includes income from companies valued using the equity method.|
In 2016, Munich Airport increased revenues by 9.2 percent to T€ 1,364,122. The largest pro rata growth in revenue, at 62.3 percent or T€ 71,507, was attributable to the Aviation business unit (including ground handling). The Commercial Activities business unit contributed T€ 34,592 (+30.1 percent) and the Real Estate business unit T€ 8,230 (+7.2 percent) to growth in revenue.
The increase in Aviation revenues is the result of positive growth in traffic in fiscal year 2016 and higher charges in accordance with the master agreement on charges as of January 1, 2016. In comparison with growth in MTOM and passenger figures, revenue from landing and passenger charges increased at a faster rate.
Revenue and volume growth
Passenger and landing charges
Because of more traffic, new customers and higher orders from existing customers, revenues from ground handling as well as passenger and freight handling rose sharply. Revenues in ground handling are dominated by the acquisition of Acciona. In fiscal year 2016, they contained proceeds from ground handling at Berlin-Tegel Airport of T€ 16,226 for the first time.
Revenues from the Commercial Activities business unit rose across all fields of activity. Key growth drivers for revenue in the non-aviation segment were catering (+37.8 percent), advertising and media (+29.2 percent) as well as parking changes and concession income from hire car providers (+10.5 percent).
Revenue (Commercial Activities)
Rental income in fiscal year 2016 rose slightly thanks to the opening of the new satellite building. Income from feed-in charges for aviation craft fuelling was also slightly higher than the previous year due to traffic growth. In total, revenue in the Real Estate business unit rose by T€ 8,230 or 7 percent to T€ 126,528.
After 24 years of being in operation, there is an ever pressing need to upgrade the buildings from the first stage of expansion at Munich Airport. Cost of materials rose to T€ 352,085 in total. The start-up operation of the satellite building also drove costs in the fiscal year.
In fiscal year 2016, Munich Airport created 739 full-time equivalents. They were created primarily at FMG and its subsidiaries in connection with the commissioning of the satellite building. The payment under the TVöD collective pay scale agreement for public sector employees was increased by 2.4 percent with effect from March 2016. Personnel expenses rose to T€ 452,515.
On acquisition of the MAC building by FMG, the lease agreement between MAC KG and MAC GmbH was terminated as of October 31, 2016. The agency agreement for the management and lease of the office and commercial space of the MAC building concluded between FMG and MAC GmbH was also terminated. As a consequence of the termination of these agreements, the company was deconsolidated. This resulted in a deconsolidation loss of T€ 2,373. Higher expenses for audit, consulting and project services (+T€ 3,386) also accrued in the fiscal year. In total, other expenses rose by T€ 8,699 to T€ 97,092.
Depreciation increased by T€ 24,793 to T€ 239,071 largely due to the commissioning of the satellite building.
The financial result decreased by T€ 1,474 to T€ -80,059. The improvement in the financial result is mainly attributable to effects from the revaluation of financial instruments not affecting cash flow as well as from the discharge of the syndicated loan in the amount of T€ 400,000.
Income taxes have increased because of higher earnings before taxes. This figure includes current income taxes of T€ 77,163 (previous year: T€ 75,233) and deferred tax income T€ 18,921 (previous year: T€ 20,144). The tax ratio was unchanged in fiscal year 2016 at 27.8 percent.
Target achievement and overall assessment
Year on year and in comparison with the forecast development, these performance indicators have trended as follows:
|EBT in T€||198,422||Decrease||-6.0||-4.0||209,873||Exceeded|
|CO2 reductions in tonnes||1,226||Increase||380.0||390.0||5,324||Exceeded|
|ASQ Overall Index||4.07||Increase||0.8||1.5||4.11||Achieved|
|Employee retention index 1)||73||Unchanged||73|
|1) The employee retention index relates to FMG, as this ensures that the results can be easily compared across all the surveys carried out. The figure quoted results from the last survey in 2013. The figure will be compiled again in 2017.|
Earnings before taxes
At T€ 11,451, Munich Airport's EBT was 5.8 percent higher, far better than expected. This was due to extraordinarily large profits from the sale of real estate outside the airport campus.
In 2016, Munich Airport implemented comprehensive measures to cut energy consumption and commissioned the PCA systems at Terminal 1 and 2 as well as at the satellite building. The target set was the implementation of measures to save a total of 4,660 tonnes of CO2 per year. This target was exceeded by implementing measures for CO2 reductions totalling 5,324 tonnes were implemented.
Airport Service Quality (ASQ) Overall Index
In fiscal year 2016, Munich Airport exceeded the ASQ figure achieved in the previous year by 0.99 percent thanks to a number of measures to improve quality, most notably through the improvements in quality resulting from the opening of the satellite building for Terminal 2. The forecast increase for 2016 was therefore achieved.
The employee retention index is compiled every three years as part of an employee survey. The last full assessment of this indicator took place in 2013. To avoid overlapping with other issues and overstimulating the employees with larger surveys, Munich Airport decided to postpone the employee survey due in 2016 by a year until 2017.
In 2016, the Group again looked at the Quick Check carried out at the end of 2014 as a follow-up to the 2013 employee survey. The Quick Check revealed a mixed picture. Many measures to improve employee satisfaction were already or in the process of being implemented. In some fields of action, the Group was, however, still unable to achieve satisfactory results. In these cases, the managers responsible were instructed to take part in the follow-up process and tighten already defined measures or agree to a new plan for action.