NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

  • I ACCOUNTING POLICIES

    • STATEMENT OF COMPLIANCE

      The unaudited interim consolidated financial statements for the six months ended 30 June 2020 were prepared in accordance with International Accounting Standard 34 (IAS 34) Interim Financial Reporting. They do not contain all the information included in the consolidated financial statements for the year ended 31 December 2019 and should therefore be read in conjunction with the latter.

    • Changes in accounting policies

      The company adopted the following new and amended International Financial Reporting Standards which are mandatory for the first time for financial year 2020 beginning on 1 January:

      • Amendments to IAS 1 and IAS 8: Definition of Material
      • Amendments to IFRS 3: Definition of a Business
      • Amendments to References to the Conceptual Framework in IFRS Standards
      • Amendments to IFRS 16: Covid-19-Related Rent Concessions

      Except as outlined in the following, the application of the new and amended Standards does not have a significant impact on these interim consolidated financial statements. In all other respects, these interim consolidated financial statements were prepared in accordance with the accounting policies described in the consolidated financial statements for the year ended 31 December 2019.

    • Changes in the consolidated group

      In November 2019, in a public tender conducted by the Indian government, Flughafen Zürich AG was awarded the concession for the construction and operation of the new Noida International Airport in Delhi. In early 2020, the wholly-owned subsidiary Yamuna International Airport Private Limited based in New Delhi (India) was established for this purpose.

    • Seasonal factors

      As there continues to be major uncertainty over the further course of the coronavirus crisis, it remains difficult to issue a reliable forecast for the second half of the year. The trend in passenger numbers depends to a significant extent on the pace of the recovery in international tourist traffic in light of border openings and travel restrictions.

  • II NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

    • 1 Segment reporting

      (CHF million)

       

      Regulated business

       

      Noise

       

      Non-regulated business

       

      Eliminations

       

      Consolidated

      First half 2020

       

       

       

       

       

      Revenue from contracts with customers (IFRS 15)

       

      126.8

       

      3.5

       

      72.6

       

      0.0

       

      202.9

      Other revenue (non IFRS 15)

       

      0.1

       

      0.0

       

      107.4

       

      0.0

       

      107.5

      Revenue from third parties

       

      126.9

       

      3.5

       

      180.0

       

      0.0

       

      310.4

      Inter-segment revenue

       

      10.1

       

      0.0

       

      36.3

       

      –46.4

       

      0.0

      Total revenue

       

      137.0

       

      3.5

       

      216.3

       

      –46.4

       

      310.4

      Personnel expenses

       

      –33.8

       

      –0.8

       

      –59.4

       

      0.0

       

      –94.0

      Other operating expenses

       

      –73.0

       

      –0.7

       

      –37.8

       

      0.0

       

      –111.5

      Inter-segment operating expenses

       

      –36.4

       

      –0.4

       

      –9.6

       

      46.4

       

      0.0

      Segment result (EBITDA)

       

      –6.2

       

      1.6

       

      109.5

       

      0.0

       

      104.9

      Depreciation and amortisation

       

      –68.7

       

      –1.8

       

      –52.8

       

      0.0

       

      –123.3

      Segment result (EBIT)

       

      –74.9

       

      –0.2

       

      56.7

       

      0.0

       

      –18.4

      Finance result

       

       

       

       

       

       

       

       

       

      –12.8

      Share of profit or loss of associates

       

       

       

       

       

       

       

       

       

      –1.6

      Income tax expense

       

       

       

       

       

       

       

       

       

      5.3

      Consolidated result

       

       

       

       

       

       

       

       

       

      –27.5

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 30 June 2020

       

      2,004.7

       

      109.9

       

      2,267.6

       

       

       

      4,382.2

      Non-interest-bearing non-current liabilities 1)

       

       

       

       

       

       

       

       

       

      616.3

      Non-interest-bearing current liabilities 2)

       

       

       

       

       

       

       

       

       

      225.7

      Total assets as at 30 June 2020

       

       

       

       

       

       

       

       

       

      5,224.2

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %) 3)

       

      1.0

       

      2.4

       

      7.0

       

       

       

      4.0

      (CHF million)

       

      Aviation

       

      PRM

       

      User fees

       

      Air security 4)

       

      Access fees 4)

       

      Eliminations

       

      Total regulated business

      First half 2020

       

       

       

       

       

       

       

      Revenue from contracts with customers (IFRS 15)

       

      78.5

       

      2.6

       

      16.0

       

      29.4

       

      0.3

       

      0.0

       

      126.8

      Other revenue (non IFRS 15)

       

      0.1

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.1

      Revenue from third parties

       

      78.6

       

      2.6

       

      16.0

       

      29.4

       

      0.3

       

      0.0

       

      126.9

      Inter-segment revenue

       

      9.7

       

      0.0

       

      2.3

       

      7.5

       

      1.1

       

      –10.5

       

      10.1

      Total revenue

       

      88.3

       

      2.6

       

      18.3

       

      36.9

       

      1.4

       

      –10.5

       

      137.0

      Personnel expenses

       

      –28.7

       

      0.0

       

      –3.8

       

      –1.0

       

      –0.3

       

      0.0

       

      –33.8

      Other operating expenses

       

      –18.9

       

      –3.4

       

      –2.2

       

      –25.6

       

      –22.9

       

      0.0

       

      –73.0

      Inter-segment operating expenses

       

      –27.8

       

      –0.4

       

      –7.1

       

      –4.5

       

      –7.1

       

      10.5

       

      –36.4

      EBITDA

       

      12.9

       

      –1.2

       

      5.2

       

      5.8

       

      –28.9

       

      0.0

       

      –6.2

      Depreciation and amortisation

       

      –51.2

       

      –0.1

       

      –12.4

       

      –3.5

       

      –1.5

       

      0.0

       

      –68.7

      EBIT

       

      –38.3

       

      –1.3

       

      –7.2

       

      2.3

       

      –30.4

       

      0.0

       

      –74.9

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 30 June 2020

       

      1,455.2

       

      9.3

       

      372.8

       

      138.9

       

      28.4

       

       

       

      2,004.7

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %) 3)

       

      1.9

       

      1.6

       

      –0.1

       

      36.8

       

      –153.0

       

       

       

      1.0

      1) Non-interest-bearing non-current liabilities include non-current provisions for formal expropriations plus sound insulation and resident protection, deferred tax liabilities, employee benefit obligations and non-current liabilities from concession arrangements.

      2) Non-interest-bearing current liabilities include current provisions for formal expropriations and sound insulation and resident protection, current tax liabilities, trade payables and other current liabilities plus accruals and deferrals.

      3) Based on the result of the 12-month period preceding the reporting date.

      4) In accordance with the Swiss Ordinance on Airport Charges, the shortfall in the “Access fees” segment can be charged to the “Air security” segment. Taking the shortfall into account, the ROIC of the “Air security” segment amounts to -4.7%.

      The reportable segments for the prior-year period are as follows:

      (CHF million)

       

      Regulated business

       

      Noise

       

      Non-regulated business

       

      Eliminations

       

      Consolidated

      First half 2019

       

       

       

       

       

      Revenue from contracts with customers (IFRS 15)

       

      309.8

       

      5.5

       

      144.7

       

      0.0

       

      460.0

      Other revenue (non IFRS 15)

       

      0.1

       

      0.0

       

      127.9

       

      0.0

       

      128.0

      Revenue from third parties

       

      309.9

       

      5.5

       

      272.6

       

      0.0

       

      588.0

      Inter-segment revenue

       

      9.9

       

      0.0

       

      44.7

       

      –54.6

       

      0.0

      Total revenue

       

      319.8

       

      5.5

       

      317.3

       

      –54.6

       

      588.0

      Personnel expenses

       

      –40.7

       

      –0.9

       

      –64.2

       

      0.0

       

      –105.8

      Other operating expenses

       

      –91.7

       

      –0.4

       

      –86.4

       

      0.0

       

      –178.5

      Inter-segment operating expenses

       

      –44.4

       

      –0.3

       

      –9.9

       

      54.6

       

      0.0

      Segment result (EBITDA)

       

      143.0

       

      3.9

       

      156.8

       

      0.0

       

      303.7

      Depreciation and amortisation

       

      –68.4

       

      –2.1

       

      –45.5

       

      0.0

       

      –116.0

      Segment result (EBIT)

       

      74.6

       

      1.8

       

      111.3

       

      0.0

       

      187.7

      Finance result

       

       

       

       

       

       

       

       

       

      –3.7

      Share of profit or loss of associates

       

       

       

       

       

       

       

       

       

      –1.8

      Income tax expense

       

       

       

       

       

       

       

       

       

      –38.8

      Consolidated result

       

       

       

       

       

       

       

       

       

      143.4

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 30 June 2019

       

      1,809.6

       

      105.7

       

      1,555.5

       

       

       

      3,470.8

      Non-interest-bearing non-current liabilities 1)

       

       

       

       

       

       

       

       

       

      618.0

      Non-interest-bearing current liabilities 2)

       

       

       

       

       

       

       

       

       

      213.8

      Total assets as at 30 June 2019

       

       

       

       

       

       

       

       

       

      4,302.6

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %) 3)

       

      7.6

       

      3.4

       

      11.6

       

       

       

      9.3

      (CHF million)

       

      Aviation

       

      PRM

       

      User fees

       

      Air security 4)

       

      Access fees 4)

       

      Eliminations

       

      Total regulated business

      First half 2019

       

       

       

       

       

       

       

      Revenue from contracts with customers (IFRS 15)

       

      181.9

       

      7.4

       

      35.7

       

      84.1

       

      0.7

       

      0.0

       

      309.8

      Other revenue (non IFRS 15)

       

      0.1

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.1

      Revenue from third parties

       

      182.0

       

      7.4

       

      35.7

       

      84.1

       

      0.7

       

      0.0

       

      309.9

      Inter-segment revenue

       

      9.4

       

      0.0

       

      2.2

       

      5.7

       

      1.0

       

      –8.4

       

      9.9

      Total revenue

       

      191.4

       

      7.4

       

      37.9

       

      89.8

       

      1.7

       

      –8.4

       

      319.8

      Personnel expenses

       

      –33.9

       

      0.0

       

      –5.0

       

      –1.2

       

      –0.6

       

      0.0

       

      –40.7

      Other operating expenses

       

      –22.9

       

      –6.0

       

      –2.8

       

      –36.3

       

      –23.7

       

      0.0

       

      –91.7

      Inter-segment operating expenses

       

      –30.4

       

      –0.5

       

      –8.1

       

      –6.8

       

      –7.0

       

      8.4

       

      –44.4

      EBITDA

       

      104.2

       

      0.9

       

      22.0

       

      45.5

       

      –29.6

       

      0.0

       

      143.0

      Depreciation and amortisation

       

      –51.0

       

      –0.1

       

      –12.5

       

      –3.1

       

      –1.7

       

      0.0

       

      –68.4

      EBIT

       

      53.2

       

      0.8

       

      9.5

       

      42.4

       

      –31.3

       

      0.0

       

      74.6

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 30 June 2019

       

      1,361.6

       

      4.8

       

      320.4

       

      87.7

       

      35.1

       

       

       

      1,809.6

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %) 3)

       

      7.3

       

      33.1

       

      4.6

       

      76.0

       

      –139.5

       

       

       

      7.6

      1) Non-interest-bearing non-current liabilities include non-current provisions for formal expropriations plus sound insulation and resident protection, deferred tax liabilities, employee benefit obligations and non-current liabilities from concession arrangements.

      2) Non-interest-bearing current liabilities include current provisions for formal expropriations and sound insulation and resident protection, current tax liabilities, trade payables and other current liabilities plus accruals and deferrals.

      3) Based on the result of the 12-month period preceding the reporting date.

      4) In accordance with the Swiss Ordinance on Airport Charges, the shortfall in the “Access fees” segment can be charged to the “Air security” segment. Taking the shortfall into account, the ROIC of the “Air security” segment amounts to 17.1%.

    • 2 Revenue

      (CHF 1,000)

       

      First half 2020

       

      First half 2019

      Passenger charges

       

      41,953

       

      118,650

      Security charges

       

      28,952

       

      83,096

      PRM charges

       

      2,575

       

      7,399

      Passenger-related flight operations charges

       

      73,480

       

      209,145

      Landing charges

       

      18,840

       

      42,417

      Aircraft-related noise charges

       

      3,515

       

      5,473

      Emission charges

       

      921

       

      1,998

      Parking charges

       

      12,312

       

      13,248

      Freight revenue

       

      3,338

       

      4,207

      Other flight operations charges

       

      38,926

       

      67,343

      Total flight operations charges

       

      112,406

       

      276,488

      Baggage sorting and handling system

       

      8,575

       

      21,232

      De-icing

       

      3,158

       

      7,390

      Check-in

       

      1,388

       

      2,838

      Aircraft energy supply system

       

      1,030

       

      1,792

      Other fees

       

      2,211

       

      3,135

      Total aviation fees

       

      16,362

       

      36,387

      Refund of security costs

       

      439

       

      1,043

      Other revenue

       

      1,222

       

      1,458

      Total other aviation revenue

       

      1,661

       

      2,501

      Total aviation revenue

       

      130,429

       

      315,376

       

       

       

       

       

      Retail, tax & duty-free

       

      33,931

       

      54,678

      Food & beverage operations

       

      5,528

       

      9,122

      Advertising media and promotion

       

      6,117

       

      9,162

      Revenue from multi-storey car parks

       

      21,392

       

      39,220

      Other commercial revenue (car rentals, taxis, banks, etc.)

       

      5,539

       

      8,327

      Total commercial and parking revenue

       

      72,507

       

      120,509

      Revenue from rental and leasing agreements

       

      54,834

       

      45,796

      Energy and utility cost allocation

       

      10,824

       

      12,024

      Cleaning

       

      1,156

       

      2,439

      Revenue from services

       

      2,316

       

      2,360

      Total revenue from facility management

       

      69,130

       

      62,619

      Communication services

       

      7,399

       

      7,752

      Other services and miscellaneous

       

      5,019

       

      8,669

      Catering

       

      393

       

      1,023

      Fuel charges

       

      1,969

       

      4,311

      Total revenue from services 

       

      14,780

       

      21,755

      Revenue from consulting activities

       

      2,799

       

      3,719

      Other revenue from international business

       

      17,427

       

      18,874

      Revenue from construction projects as part of concession arrangements

       

      3,328

       

      45,102

      Total revenue from international business

       

      23,554

       

      67,695

      Total non-aviation revenue

       

      179,971

       

      272,578

       

       

       

       

       

      Total revenue 

       

      310,400

       

      587,954

      Sales of commercial partners in the retail, tax & duty free and food & beverage segments were much lower owing to the coronavirus crisis. The corresponding commercial revenue of Flughafen Zurich AG for the 2020 financial year will therefore be based on the agreed minimum annual rents.

      According to a legal assessment, tenants affected by the lockdown are not required to pay the agreed minimum annual rent. Accordingly, Flughafen Zurich AG did not enter the minimum rent for the lockdown period from 17 March until 10 May 2020.

      Additional rent reductions have been discussed with the tenants concerned for the post-lockdown period (as of 11 May 2020). Solutions have already been found with most commercial partners. On the basis of a best-possible assessment, the company has factored the expected rent reductions in to the half-yearly results as at 30 June 2020.

      Presentation of revenue from contracts with customers (IFRS 15):

      (CHF 1,000)

       

      First half 2020

       

      First half 2019

      Flight operations charges

       

      112,406

       

      276,488

      Aviation charges

       

      16,362

       

      36,387

      Other aviation revenue

       

      1,556

       

      2,396

      Total aviation revenue from contracts with customers (IFRS 15)

       

      130,324

       

      315,271

      Aviation revenue (non IFRS 15)

       

      105

       

      105

      Total aviation revenue

       

      130,429

       

      315,376

       

       

       

       

       

      Commercial and parking revenue

       

      20,629

       

      39,426

      Revenue from facility management

       

      14,072

       

      16,568

      Revenue from services 

       

      14,296

       

      21,018

      Revenue from international activities

       

      23,554

       

      67,695

      Total non-aviation revenue from contracts with customers (IFRS 15)

       

      72,551

       

      144,707

      Non-aviation revenue (non IFRS 15)

       

      107,420

       

      127,871

      Total non-aviation revenue

       

      179,971

       

      272,578

       

       

       

       

       

      Total revenue 

       

      310,400

       

      587,954

    • 3 Other income and expenses

      (CHF 1,000)

       

      First half 2020

       

      First half 2019

      Capitalised expenditure

       

      7,607

       

      7,237

      Other income

       

      736

       

      1,689

      Capitalised expenditure and other income

       

      8,343

       

      8,926

       

       

       

       

       

      Expenses for construction projects as part of concession arrangements

       

      –3,328

       

      –45,102

      Other expenses

       

      –2,409

       

      –3,401

      Expenses for construction projects and other expenses

       

      –5,737

       

      –48,503

      The expenses of CHF -3.3 million (prior-year period: CHF -45.1 million) for construction projects under concession arrangements are the result of investments in airport Brazil, Chile and India. The corresponding counter-item can be found under note 2, Revenue.

    • 4 finance result

      (CHF 1,000)

       

      First half 2020

       

      First half 2019

      Net interest expenses on debentures and non-current loans

       

      –5,082

       

      –5,345

      Net interest expenses on defined benefit obligations

       

      –175

       

      –537

      Interest expenses on finance lease liabilities

       

      –12

       

      –44

      Other interest expenses

       

      –4,110

       

      –980

      Adjustments to fair value on financial assets of Airport of Zurich Noise Fund

       

      –1,399

       

      0

      Present value adjustment on provision for formal expropriations plus sound insulation and resident protection

       

      0

       

      –2,159

      Present value adjustment on liabilities from concession arrangements

       

      –959

       

      –1,662

      Foreign exchange losses

       

      –699

       

      –640

      Other finance costs

       

      –1,115

       

      –2,132

      Total finance costs

       

      –13,551

       

      –13,499

       

       

       

       

       

      Interest income on financial assets of Airport of Zurich Noise Fund

       

      200

       

      243

      Other interest income

       

      397

       

      3,062

      Adjustments to fair value on financial assets of Airport of Zurich Noise Fund

       

      0

       

      6,410

      Other finance income

       

      78

       

      53

      Total finance income

       

      675

       

      9,768

       

       

       

       

       

      Finance result

       

      –12,876

       

      –3,731

      The increase in “Other interest expenses” in the first half of 2020 is due in particular to borrowing costs payable in Florianópolis, as these can no longer be capitalised since the new terminal was completed in autumn 2019.

      The decline in “Other interest income” compared with the prior-year period is attributable to lower holdings of cash and cash equivalents for international concessions, which in turn generate a lower amount of interest income.

    • 5 Property, Plant and equipment

      (CHF million)

       

      Land

       

      Engineering structures

       

      Buildings

       

      Projects in progress

       

      Movables

       

      Total property, plant and equipment

      Cost

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      129.0

       

      1,673.3

       

      4,607.7

       

      305.2

       

      277.4

       

      6,992.6

      Additions

       

      9.1

       

       

       

      0.8

       

      128.5

       

       

       

      138.4

      Disposals

       

       

       

      –2.0

       

      –4.6

       

       

       

      –7.3

       

      –13.9

      Transfers

       

       

       

      0.2

       

      28.4

       

      –35.3

       

      3.8

       

      –2.9

      Balance as at 30 June 2020

       

      138.1

       

      1,671.5

       

      4,632.3

       

      398.4

       

      273.9

       

      7,114.2

       

       

       

       

       

       

       

       

       

       

       

       

       

      Depreciation, amortisation

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      0.0

       

      –921.4

       

      –3,022.6

       

      0.0

       

      –193.9

       

      –4,137.9

      Additions

       

       

       

      –29.4

       

      –72.4

       

       

       

      –8.2

       

      –110.0

      Disposals

       

       

       

      1.8

       

      4.3

       

       

       

      7.2

       

      13.3

      Balance as at 30 June 201920

       

      0.0

       

      –949.0

       

      –3,090.7

       

      0.0

       

      –194.9

       

      –4,234.6

       

       

       

       

       

       

       

       

       

       

       

       

       

      Government subsidies and grants

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      0.0

       

      –9.3

       

      –1.7

       

      0.0

       

      –0.2

       

      –11.2

      Additions

       

       

       

       

       

       

       

      –0.7

       

       

       

      –0.7

      Disposals

       

       

       

      0.4

       

      0.1

       

       

       

      0.1

       

      0.6

      Transfers

       

       

       

       

       

      –0.5

       

      0.5

       

       

       

      0.0

      Balance as at 30 June 2020

       

      0.0

       

      –8.9

       

      –2.1

       

      –0.2

       

      –0.1

       

      –11.3

       

       

       

       

       

       

       

       

       

       

       

       

       

      Net carrying amount as at 1 January 2020

       

      129.0

       

      742.6

       

      1,583.4

       

      305.2

       

      83.3

       

      2,843.5

      Net carrying amount as at 30 June 2020

       

      138.1

       

      713.6

       

      1,539.5

       

      398.2

       

      78.9

       

      2,868.3

      Projects in progress

      In the first half of 2020, Flughafen Zürich AG invested a total of CHF 128.5 million in projects in progress (prior-year period: CHF 94.5 million). The biggest items comprise the following projects:

      • Upgrading and expansion of the baggage system (CHF 30.5 million)
      • Renovation of the maintenance workshop (CHF 13.8 million)
      • Expansion of the landside passenger zones (CHF 13.3 million)

      Impairment

      Due to the coronavirus pandemic and the related indicators that items of property, plant and equipment may be impaired, Flughafen Zürich AG performed an impairment test (see note 16.1, Impairment in accordance with IAS 36).

    • 6 investment property

      (CHF 1,000)

       

      Land

       

      Project and construction costs

       

      Total investment property

      Cost

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      950

       

      432,519

       

      433,469

      Additions

       

      0

       

      71,805

       

      71,805

      Balance as at 30 June 2020

       

      950

       

      504,324

       

      505,274

       

       

       

       

       

       

       

      Accumulated depreciation and impairment losses

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      0

       

      –712

       

      –712

      Additions

       

      0

       

      –466

       

      –466

      Balance as at 30 June 2020

       

      0

       

      –1,178

       

      –1,178

       

       

       

       

       

       

       

      Net carrying amount as at 1 January 2020

       

      950

       

      431,807

       

      432,757

      Net carrying amount as at 30 June 2020

       

      950

       

      503,146

       

      504,096

      THE CIRCLE PROJECT

      Based on the nature of the contractual arrangement, the co-ownership structure The Circle is classified as a joint operation in accordance with IFRS 11. The share of the rights to the assets and the share of the obligations for the liabilities of the co-ownership structure are therefore recognised and presented in the relevant line items in the consolidated financial statements of Flughafen Zürich AG (Flughafen Zürich AGʼs share: 51%).

      The fair value of The Circle was CHF 627.3 million at the reporting date (31 December 2019: CHF 530.9 million). The value was calculated by an external property valuer.

    • 7 INTANGIBLE ASSETS

      (CHF 1,000)

       

      Investments in airport operator projects

       

      Intangible asset from right of formal expropriation

       

      Other intangible assets

      Cost

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      353,759

       

      134,029

       

      94,114

      Additions

       

      11,038

       

      0

       

      23

      Disposals

       

      0

       

      0

       

      –19,350

      Transfers

       

      0

       

      0

       

      2,913

      Foreign exchange differences

       

      –79,168

       

      0

       

      –739

      Balance as at 30 June 2020

       

      285,629

       

      134,029

       

      76,961

       

       

       

       

       

       

       

      Accumulated depreciation and impairment losses

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      –10,469

       

      –63,184

       

      –75,581

      Additions

       

      –4,384

       

      –1,127

       

      –3,525

      Disposals

       

      0

       

      0

       

      19,350

      Foreign exchange differences

       

      3,679

       

      0

       

      337

      Balance as at 30 June 2020

       

      –11,174

       

      –64,311

       

      –59,419

       

       

       

       

       

       

       

      Net carrying amount as at 1 January 2020

       

      343,290

       

      70,845

       

      18,533

      Net carrying amount as at 30 June 2020

       

      274,455

       

      69,718

       

      17,542

      Investments in airport operator projects

      The investments in airport operator projects in the amount of CHF 274.5 million (31 December 2019: CHF 343.3 million) consist of concession rights which, due to the application of IFRIC 12, comprise minimum concession payments recognised as assets and investments made.

      The obligations of CHF 21.7 million (31 December 2019: CHF 26.3 million) relating to the corresponding concessions have been recognised as current or non-current liabilities (see note 10, Financial liabilities).

      IMPAIRMENT

      Due to the coronavirus pandemic and the related indicators that intangible assets may be impaired, Flughafen Zürich AG performed an impairment test (see note 16.1, Impairment in accordance with IAS 36).

    • 8 Trade receivables

      (CHF 1,000)

       

      30.06.2020

       

      31.12.2019

      Trade receivables, gross

       

      54,644

       

      112,805

      Allowance for expected credit loss

       

      –1,001

       

      –616

      Trade receivables, net

       

      53,643

       

      112,189

      (CHF 1,000)

       

       

       

       

       

       

       

       

       

      30.06.2020

       

       

      Not past due

       

      Past due, 0 to 30 days

       

      Past due, 31 to 60 days

       

      Past due, more than 60 days

       

      Total

      Expected credit loss rate (in %)

       

      0.3

       

      1.5

       

      3.0

       

      5.0

       

       

      Trade receivables, gross

       

      27,343

       

      7,012

       

      9,538

       

      10,751

       

      54,644

      Expected credit loss

       

      –74

       

      –105

       

      –285

       

      –537

       

      –1,001

      (CHF 1,000)

       

       

       

       

       

       

       

       

       

      31.12.2019

       

       

      Not past due

       

      Past due, 0 to 30 days

       

      Past due, 31 to 60 days

       

      Past due, more than 60 days

       

      Total

      Expected credit loss rate (in %)

       

      0.3

       

      1.5

       

      3.0

       

      5.0

       

       

      Trade receivables, gross

       

      94,505

       

      14,754

       

      1,499

       

      2,047

       

      112,805

      Expected credit loss

       

      –247

       

      –221

       

      –46

       

      –102

       

      –616

    • 9 CASH AND CASH EQUIVALENTS AND FIXED-TERM DEPOSITS

       

       

      30.06.2020

       

      31.12.2019

      (CHF 1,000)

       

      Total

       

      of which AZNF

       

      Total

       

      of which AZNF

      Cash on hand

       

      181

       

      0

       

      120

       

      0

      Cash at banks and in postal accounts

       

      133,775

       

      12,512

       

      115,845

       

      18,092

      Fixed-term deposits 1)

       

      488,381

       

      0

       

      16,463

       

      0

      Total cash and cash equivalents

       

      622,337

       

      12,512

       

      132,428

       

      18,092

       

       

       

       

       

       

       

       

       

      Current fixed-term deposits 2)

       

      175,000

       

      0

       

      37,500

       

      0

      Non-current fixed-term deposits 2)

       

      25,596

       

      0

       

      636

       

      0

      Total fixed-term deposits

       

      200,596

       

      0

       

      38,136

       

      0

      1) Due within 90 days from date of acquisition.

      2) Due after 90 days from date of acquisition.

    • 10 FINANCIAL LIABILITIES

      (CHF 1,000)

       

      30.06.2020

       

      31.12.2019

      Debentures

       

      1,448,879

       

      750,416

      Non-current liabilities to banks

       

      67,080

       

      89,491

      Non-current lease liabilities

       

      80,323

       

      78,419

      Non-current liabilities from concession arrangements

       

      20,679

       

      25,256

      Other non-current financial liabilities

       

      43,750

       

      15,786

      Non-current financial liabilities

       

      1,660,711

       

      959,368

       

       

       

       

       

      Debentures

       

      299,999

       

      299,938

      Current liabilities to banks

       

      60,000

       

      0

      Current lease liabilities

       

      6,346

       

      6,163

      Current liabilities from concession arrangements

       

      995

       

      1,068

      Other current financial liabilities

       

      7,288

       

      44,383

      Current financial liabilities

       

      374,628

       

      351,552

       

       

       

       

       

      Total financial liabilities

       

      2,035,339

       

      1,310,920

      In February 2020, Flughafen Zürich AG issued a fifteen-year CHF 400.0 million debenture bearing a coupon of 0.20%, which was used to fund property purchases and served as working capital.

      In May 2020, the company placed a further debenture in order to secure liquidity. This was a four-year CHF 300.0 million debenture bearing a coupon of 0.70%.

      The maturities and terms of the debentures outstanding at the reporting date were as follows:

       

       

      as at 30.06.2020

       

      as at 30.06.2020

       

       

       

       

       

       

       

       

      Debentures

       

      Nominal value

       

      Carrying amount

       

      Duration

       

      Interest rate

       

      Early amortisation

       

      Interest payment date

       

       

      (CHF 1,000)

       

      (CHF 1,000)

       

       

       

       

       

       

       

       

      Debenture 1)

       

      300,000

       

      299,999

       

      2012 – 2020

       

      1.250% 

       

      no

       

      3.7.

      Debenture

       

      400,000

       

      399,863

       

      2013 – 2023

       

      1.500% 

       

      no

       

      17.4.

      Debenture

       

      300,000

       

      299,082

       

      2020 – 2024

       

      0.700% 

       

      no

       

      22.5.

      Debenture

       

      350,000

       

      350,547

       

      2017 – 2029

       

      0.625% 

       

      no

       

      24.5.

      Debenture

       

      400,000

       

      399,387

       

      2020 – 2035

       

      0.200% 

       

      no

       

      26.2.

      Total debentures

       

       

       

      1,748,878

       

       

       

       

       

       

       

       

      1) Repayment as per 3 July 2020.

      As at the reporting date, Flughafen Zürich AG had the following unused credit facilities at its disposal:

      (CHF 1,000)

       

      Duration

       

      30.06.2020

       

      31.12.2019

      Operating credit lines (committed credit lines)

       

      31.12.2025

       

      160,000

       

      240,000

      Total credit lines

       

       

       

      160,000

       

      240,000

      Utilisation

       

       

       

      –74,716

       

      –15,904

      Total unused credit lines

       

       

       

      85,284

       

      224,096

    • 11 PROVISION FOR FORMAL EXPROPRIATIONS PLUS SOUND INSULATION AND RESIDENT PROTECTION

      (CHF 1,000)

       

      Formal expropriations

       

      Sound insulation and resident protection

       

      Total

      Balance as at 1 January 2020

       

      248,079

       

      139,428

       

      387,507

      Provisions used 1)

       

      –1,089

       

      –2,952

       

      –4,041

      Present value adjustment

       

      0

       

      0

       

      0

      Balance as at 30 June 2020

       

      246,990

       

      136,476

       

      383,466

      of which current (planned payment within 1 year)

       

      16,641

       

      16,051

       

      32,692

      of which non-current (planned payment from 1 year on)

       

      230,349

       

      120,425

       

      350,774

      1) The amount paid for formal expropriations only includes effective payments of compensation, and excludes other associated external costs in accordance with the regulations of the Airport of Zurich Noise Fund.

      Provision for formal expropriations

      As at 30 June 2020, the estimated costs for formal expropriations remained unchanged at CHF 330.0 million, of which CHF 83.0 million had already been paid out at that date. A provision for the outstanding costs of CHF 247.0 million (nominal amount) was recognised in the consolidated financial statements at present value as at the reporting date. As the interest rate used to adjust the present value of the nominal payment flows remained unchanged at 0.00%, the present value is the nominal amount. It is expected that the payments can be completed by the end of 2030.

      Provision for sound insulation and resident protection

      As at 30 June 2020, the estimated costs for sound insulation and resident protection measures remained unchanged at CHF 400.0 million, of which CHF 263.5 million had already been paid out at that date. A provision for the outstanding costs of CHF 136.5 million (nominal amount) was recognised in the consolidated financial statements at present value as at the reporting date. As the interest rate used to adjust the present value of the nominal payment flows remained unchanged at 0.00%, the present value is the nominal amount. It is expected that the payments can be completed by the end of 2030.

    • 12 AIRPORT of ZURICH NOISE FUND

      (CHF 1,000)

       

      2020

      Airport of Zurich Noise Fund as at 1 January

       

      422,882

      Revenue from noise charges

       

      4,142

      Costs for sound insulation and resident protection

       

      –2,952

      Costs for formal expropriations 1)

       

      –1,440

      Airport of Zurich Noise Fund as at 30 June before operating costs and finance result

       

      422,632

      Noise-related operating costs

       

      –1,701

      Interest income and adjustments to fair value financial assets of Airport of Zurich Noise Fund

       

      –1,143

      Airport of Zurich Noise Fund as at 30 June

       

      419,788

      1) In addition to compensation payments for formal expropriations, this amount includes other associated external costs (in accordance with the regulations of the Airport of Zurich Noise Fund).

      Summary of assets invested in the Airport of Zurich Noise Fund:

      (CHF 1,000)

       

      30.06.2020

       

      31.12.2019

      Cash equivalents (see note 9, "Cash and cash equivalents")

       

      12,512

       

      18,092

      Current financial assets of Airport of Zurich Noise Fund

       

      20,257

       

      17,376

      Non-current financial assets of Airport of Zurich Noise Fund

       

      395,753

       

      394,428

      Accrual / deferral towards Flughafen Zürich AG 1)

       

      –8,734

       

      –7,014

      Total assets invested for Airport of Zurich Noise Fund

       

      419,788

       

      422,882

      1) For accounting reasons, an asset or liability towards Flughafen Zürich AG arises as of the balance sheet date. This is compensated in the subsequent month, so the balance of liquid funds is restored.

    • 13 DEFERRED TAX ASSETS AND LIABILITIES

      In accordance with IAS 12.47, deferred tax assets and liabilities are calculated at the rate that is expected to apply when the asset is realised or the liability settled. Flughafen Zürich AG currently anticipates an applicable tax rate of 20.4% (31 December 2019: 20.4%).

      The balance of deferred taxes changed as follows:

      (CHF 1,000)

       

      2020

      Deferred tax assets and liabilities, net as at 1 January

       

      –34,033

      Deferred taxes on remeasurement of defined benefit obligations, recognised in OCI

       

      4,081

      Change according to income statement

       

      5,554

      Foreign exchange differences

       

      –251

      Deferred tax assets and liabilities, net as at 30 June

       

      –24,649

      of which deferred tax assets

       

      1,503

      of which deferred tax liabilities

       

      –26,152

    • 14 Employee benefit obligations

      Employee benefit obligations broke down as follows at the reporting date:

      (CHF 1,000)

       

      30.06.2020

       

      31.12.2019

      Net defined benefit obligations

       

      –200,229

       

      –177,007

      Other long-term employee benefits

       

      –13,600

       

      –13,197

      Employee benefit obligations

       

      –213,829

       

      –190,204

      Net defined benefit obligations changed as follows in the first half of 2020:

      (CHF 1,000)

       

      2020

      Net defined benefit obligations as at 1 January

       

      –177,007

      Total charge recognised in the income statement

       

      –12,407

      Total remeasurements recognised in other comprehensive income

       

      –19,947

      Employer contributions

       

      9,132

      Net defined benefit obligations as at 30 June

       

      –200,229

    • 15 FAIR VALUE DISCLOSURES

      FAIR VALUES

      Due to their short-term nature, the carrying amounts of cash and cash equivalents, fixed-term deposits, trade receivables, other current receivables and current liabilities are a reasonable approximation of their fair values.

      Financial assets in the Airport of Zurich Noise Fund: The fair value of the bonds corresponds to the market price of the securities at the reporting date (level 1). The fair value of the mixed investment fund is the unadjusted net asset value, as the units may be redeemed at that value as at the reporting date (level 2).

      Financial liabilities: The fair value of the debentures corresponds to the market price at the reporting date (level 1).

      Derivative financial instruments: The fair value of the cross-currency swap is determined using a fair value model (level 2). The key inputs are foreign exchange rates and interest rates observable in the market. Unobservable inputs are not significant to the measurement.

      (CHF 1,000)

       

       

       

      30.06.2020

       

       

       

      31.12.2019

       

       

      Carrying amount

       

      Fair value

       

      Carrying amount

       

      Fair value

      Financial assets of Airport of Zurich Noise Fund (bonds)

       

      312,510

       

      316,414

       

      307,305

       

      313,155

      Total financial assets

       

      312,510

       

      316,414

       

      307,305

       

      313,155

       

       

       

       

       

       

       

       

       

      Debentures

       

      –1,748,878

       

      –1,755,785

       

      –1,050,354

       

      –1,093,000

      Total financial liabilities

       

      –1,748,878

       

      –1,755,785

       

      –1,050,354

       

      –1,093,000

      FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

      Financial instruments recognised or disclosed at fair value are categorised according to the following hierarchy, reflecting the significance of the inputs used to measure fair value:

      Level 1 – Quoted market prices

      The inputs used to measure the assets or liabilities are quoted, unadjusted market prices determined in active markets for identical assets or liabilities at the measurement date.

      Level 2 – Measurement based on observable inputs

      The assets or liabilities are measured on the basis of inputs (other than the quoted prices included within level 1) that are directly or indirectly observable for the asset or liability.

      Level 3 – Measurement based on unobservable inputs

      The inputs for these assets or liabilities are not observable.

      (CHF 1,000)

       

      30.06.2020

       

      31.12.2019

       

       

      Level 1

       

      Level 2

       

      Level 3

       

      Level 1

       

      Level 2

       

      Level 3

       

       

       

       

       

       

       

       

       

       

       

       

       

      Mixed investment fund of the Airport of Zurich Noise Fund at fair value

       

       

       

      103,500

       

       

       

       

       

      104,499

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Cross-currency swap

       

       

       

      –2,574

       

       

       

       

       

      –4,843

       

       

    • 16 FURTHER DETAILS

      16.1 IMPAIRMENT IN ACCORDANCE WITH IAS 36 (IMPAIRMENT TEST)

      The coronavirus crisis brought air traffic almost completely to a standstill in some cases. This and the related reduction in commercial activities resulted in lower demand at airports around the globe and also affected Flughafen Zürich AG. As these circumstances indicate that the carrying amount of assets may be impaired, the company performed an impairment test for its cash-generating units. In each case, the cash-generating unitʼs value in use was calculated as its recoverable amount and checked to determine whether it exceeds the corresponding carrying amount. Management did not identify any impairment losses for Flughafen Zürich AGʼs cash-generating units as a result of this analysis as at the reporting date. The impairment calculations will be conducted again in the second half based on the current impact of the coronavirus crisis.

      16.2 CONTINGENT LIABILITIES

      A number of legal proceedings and claims against Flughafen Zürich AG in the context of its normal business activities are still pending. The company does not expect the amounts required to settle these lawsuits and claims to have a significantly negative impact on the consolidated financial statements and cash flow of Flughafen Zürich AG.

      Depending on future and final-instance legal judgements, especially with respect to the southern approaches, noise-related liabilities may in future be subject to substantial adjustments, which would also require adjustments to the noise-related costs recognised as assets and liabilities in the balance sheet. At the present time, it is not possible to reliably estimate the total costs to capitalise as an intangible asset from the right of formal expropriation, the resulting amortisation or the corresponding provision.

      Flughafen Zürich AG is jointly and severally liable to third parties for the liabilities of the co-ownership structure The Cirle and the ordinary partnership The Circle.

      16.3 EVENTS AFTER THE REPORTING DATE

      The Board of Directors approved the 2020 interim consolidated financial statements and authorised them for issue on 18 August 2020.

      On 3 July 2020, a CHF 300 million debenture was repaid on schedule.