Results of operations, assets, and financial position

Results of operations

Earnings after taxes still impacted by coronavirus pandemic

In fiscal year 2021, Munich Airport’s earnings after taxes (EAT) improved by T€ 60,105 to T€ -261,296. The developments are explained in detail below.

Results of operations

 

 

 

 

 

 

Change

T€

 

2021

 

2020

 

Absolute

 

Relative in %

Revenue

 

601,276

 

579,672

 

21,604

 

3.7

Other income

 

79,206

 

44,543

 

34,663

 

77.8

Total revenue

 

680,482

 

624,215

 

56,267

 

9.0

Cost of materials

 

-249,702

 

-232,577

 

-17,125

 

7.4

Personnel expenses

 

-419,095

 

-408,606

 

-10,489

 

2.6

Other expenses

 

-57,501

 

-144,870

 

87,369

 

-60.3

EBITDA

 

-45,816

 

-161,838

 

116,022

 

-71.7

Depreciation and amortization

 

-239,851

 

-242,016

 

2,165

 

-0.9

EBIT

 

-285,667

 

-403,854

 

118,187

 

-29.3

Financial result1)

 

-50,590

 

-29,566

 

-21,024

 

71.1

EBT

 

-336,257

 

-433,420

 

97,163

 

-22.4

Income taxes

 

74,961

 

112,019

 

-37,058

 

-33.1

EAT

 

-261,296

 

-321,401

 

60,105

 

-18.7

1)

This also includes the results from companies accounted for using the equity method.

The traffic recovery in 2021 led to an increase in revenue from airport charges from T€ 164,782 to T€ 187,437 (+13.7%). Nevertheless, sales are at a low level and continue to be affected by the coronavirus pandemic.

Revenue from handling operations also increased by a total of T€ 7,937 (+12.0%), primarily in the area of ground handling services. All airlines repeatedly adjusted their flight offers at short notice to the corresponding travel restrictions.

Revenue in the other divisions developed as follows:

Breakdown of revenue of other areas

T€

Breakdown of revenue of other areas (bar chart (horizontal))

Other revenues include global management, consulting and training services for the aviation industry amounting to T€ 26,747 (2020: T€ 20,247).

Other income includes T€ 12,083 in non-recurring effects from economic aid (November and December aid) in connection with the coronavirus pandemic for a subsidiary.

After almost 30 years of operation, the need for renovation of the buildings from the first expansion phase of Munich Airport continues to grow. Accordingly, expenses for refurbishment, optimization, and conversion measures increased (+T€ 19,285), primarily in the course of the modernization to be carried out at the hotel in 2021. By contrast, the remaining costs in the cost of materials remained at the level of the previous year, despite the increase in air traffic, due to the continued cost-cutting measures in the Group.

Munich Airport’s personnel expenses increased in particular as a result of the further staff adjustment programs launched and implemented throughout the Group in 2021. Overall, the average number of employees decreased from 9,384 to 8,569.

Adjusted for the expenses recognized in the previous year for provisions in connection with the «Restart» change program (T€ 76,868), other expenses decreased overall by 15.4% (-T€ 10,501) as a result of strict cost management in the Group.

Depreciation and amortization (T€ 239,851; 2020: T€ 242,016) includes impairment losses on assets of T€ 31,081 (2020: T€ 42,495). In fiscal year 2021, these relate primarily to assets valued at T€ 26,300 as a result of newly concluded rental agreements. In the previous year, the impairment losses mainly included planning services of T€ 24,663 for the third runway, which have to be provided again due to the postponement in connection with the coronavirus pandemic.

The financial result (including the result from companies accounted for using the equity method) deteriorated by T€ 21,024 to T€ -50,590. This was mainly due to the non-cash effects of the revaluation of financial liabilities from interests in partnerships in other financial results.

Income taxes include actual tax expenses of T€ 2,587 (2020: tax income of T€ 704) and deferred tax income of T€ 77,548 (2020: T€ 111,315). The high level of deferred tax income is mainly due to the recognition of tax losses carried forward, since the Group companies expect to generate positive results again in the coming years.

Assets and financial position

Assets – Munich Airport secures its liquidity in the second year of Corona

Financial position

 

 

 

 

 

 

Change

T€

 

Dec. 31, 2021

 

Dec. 31, 2020

 

Absolute

 

Relative in %

Non-current assets

 

5,328,662

 

5,315,139

 

13,523

 

0.3

Current assets1)

 

164,483

 

213,451

 

-48,968

 

-22.9

thereof cash and cash equivalents

 

16,963

 

9,717

 

7,246

 

74.6

Assets

 

5,493,145

 

5,528,590

 

-35,445

 

-0.6

Equity

 

1,815,132

 

2,064,962

 

-249,830

 

-12.1

Other non-current liabilities2)

 

2,754,453

 

2,530,126

 

224,327

 

8.9

Other current liabilities2)

 

923,560

 

933,502

 

-9,942

 

-1.1

Equity and Liabilities

 

5,493,145

 

5,528,590

 

-35,445

 

-0.6

1)

Including assets held for sale

2)

Including financial liabilities from partnerships

The increase in non-current assets (+T€ 13,523 ) mainly related to contract assets in the amount of T€ 8,939 and deferred tax assets in the amount of T€ 6,984.

In the 2021 fiscal year, Munich Airport’s liquidity reserves decreased from T€ 67,985 to T€ 34,984 as a result of the crisis. The balance at the end of the year resulted from the raising of new funds to secure liquidity, which are included in the current assets. In addition, other assets (-T€ 13,523) decreased to T€ 19,263 due to the higher receivables from the tax authorities in the previous year.

The change in equity to T€ 1,815,132 is mainly due to the consolidated net loss for the current financial year of T€ 261,296.

The increase in non-current liabilities to T€ 2,754,453 is mainly due to the borrowing of funds totaling T€ 425,000 to secure liquidity.

Other current liabilities include repayments of loans due in the 2022 fiscal year. The total balance at the reporting date was T€ 172,673 (previous year: T€ 212,751). In addition, liabilities decreased by T€ 33,409 to T€ 145,006.

Capital structure – borrowing to secure liquidity

Capital structure

 

 

 

 

 

 

Change

T€

 

Dec. 31, 2021

 

Dec. 31, 2020

 

Absolute

 

Relative in %

Subscribed capital

 

306,776

 

306,776

 

0

 

0.0

Reserves

 

90,083

 

133,651

 

-43,568

 

-32.6

Other equity

 

1,418,253

 

1,624,515

 

-206,262

 

-12.7

thereof profit or loss for the year

 

-261,296

 

-321,401

 

60,105

 

-18.7

Non-controlling interests

 

20

 

20

 

0

 

0.0

thereof profit or loss for the year

 

0

 

1

 

-1

 

-100.0

Equity

 

1,815,132

 

2,064,962

 

-249,830

 

-12.1

 

 

 

 

 

 

 

 

 

Financial liabilities from interests in partnerships

 

348,177

 

334,619

 

13,558

 

4.1

 

 

 

 

 

 

 

 

 

Shareholder loans1)

 

523,255

 

512,788

 

10,467

 

2.0

 

 

 

 

 

 

 

 

 

Fixed-rate loans

 

1,591,512

 

1,220,872

 

370,640

 

30.4

Floating-rate loans

 

514,238

 

603,417

 

-89,179

 

-14.8

Loans

 

2,105,750

 

1,824,289

 

281,461

 

15.4

 

 

 

 

 

 

 

 

 

Derivatives

 

1,297

 

16,341

 

-15,044

 

-92.1

 

 

 

 

 

 

 

 

 

Other liabilities

 

699,534

 

786,052

 

-86,518

 

-11.0

 

 

 

 

 

 

 

 

 

Financial liabilities

 

3,678,013

 

3,474,089

 

203,924

 

5.9

 

 

 

 

 

 

 

 

 

Equity ratio

 

33.0%

 

37.3%

 

 

 

 

1)

including deferred interest

The equity ratio decreased primarily due to the result for the financial year and the borrowing of funds to secure liquidity.

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 in T€

 

from

 

to

Financial liabilities from interests in partnerships

 

EUR

 

Earnings-based

 

348,177

 

 

Shareholder loans

 

EUR

 

variable/earnings-based

 

491,913

 

Base rate plus margin

Loans

 

EUR

 

Floating-rate

 

516,536

 

3M- and 6M-EURIBOR plus margin

Loans

 

EUR

 

Fixed-rate

 

1,592,366

 

0.16

 

3.46

(As at December 31, 2021)

The shareholder loans are available for an indefinite period and bear interest at the prime rate plus a margin.

The loans are subject to the usual non-financial covenants, including pari passu declarations. In addition, there are other general conventional agreements concerning repayment in the event of changes in shareholder structure. No financial covenants have been agreed.

Munich Airport uses interest payer swaps and forward exchange transactions to hedge against risks arising from interest rate and exchange rate fluctuations. Interest rate hedges are accounted for as a valuation unit.

Hedging transaction conditions

 

 

 

 

 

 

Fixed rate in %

 

Forward rate in EUR/USD

 

 

Hedge transactions

 

Notional amount

 

Currency

 

from

 

to

 

from

 

to

 

Underlying transactions

Interest payer swaps

 

55,000

 

T€

 

0.50

 

0.60

 

 

 

Syndicated loans

Forward exchange transactions1)

 

2,573

 

T€

 

 

 

1.18

 

1.22

 

Expected transactions

1)

These hedging relationships are not accounted for.

Liquidity

Due to the improved traffic development and strict cost management in fiscal year 2021, the cash outflow from operating activities (previous year: T€ 116,048) was significantly reduced in the second year of Corona.

The cash outflow from investing activities resulted primarily from investments in construction projects. The cash inflow from financing activities decreased by T€ 124,197 compared with the previous year to T€ 248,665, in particular due to the lower level of long-term borrowings to secure liquidity and the higher level of loan repayments.

Cash flow statement

T€

Cash flow statement (line chart)

Investments

In fiscal year 2021, investments in property, plant, and equipment for own use at Munich Airport was T€ 244,628 in total. This was offset by planned depreciation in the amount of T€ 199,553.

These investments primarily comprise costs for construction projects, which were not yet completed in fiscal year 2021. These included among others investments in connection with the development of AirSite West, including the «LabCampus» project, the expansion and modernization of Terminal 1, and the expansion of the rail tunnel for the Erding ring closure.

In addition, construction projects such as the east apron extension, the P44 parking garage and the test track for autonomous driving were completed and put into operation.

Further explanations on this are included in the section Key events in the past fiscal year.

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