9 Right-of-use assets

The Zurich Airport Group as lessee

(CHF million)	Technical installations	Real estate	Total right-of-use assets
Cost
Balance as at 1 January 2020	21.8	87.3	109.1
Additions	0.0	5.6	5.6
Reclassification	–21.8	0.0	–21.8
Balance as at 31 December 2020	0.0	92.9	92.9

Balance as at 1 January 2021	0.0	92.9	92.9
Additions	0.0	0.5	0.5
Reclassification	0.0	0.0	0.0
Balance as at 31 December 2021	0.0	93.4	93.4


Depreciation, amortisation
Balance as at 1 January 2020	–20.8	–4.8	–25.7
Additions	–0.8	–7.3	–8.2
Reclassification	21.7	0.0	21.7
Balance as at 31 December 2020	0.0	–12.2	–12.2

Balance as at 1 January 2021	0.0	–12.2	–12.2
Additions	0.0	–7.3	–7.3
Reclassification	0.0	0.0	0.0
Balance as at 31 December 2021	0.0	–19.5	–19.5


Net carrying amount as at 31 December 2020	0.0	80.7	80.7
Net carrying amount as at 31 December 2021	0.0	73.9	73.9

Technical installations

In December 2001, the Zurich Airport Group entered into a framework lease contract to finance the aircraft energy supply system (ESS), which expired on 31 July 2020. At that date, the ESS was purchased at its residual value of CHF 0.1 million and transferred to the engineering structures category of assets (see note 8, Property, plant and equipment).

Real estate

The Zurich Airport Group has a right-of-use asset entitling it to use space in a building that is located on Flughafen Zürich AG’s land and was constructed under a granted building right from 2005. Although its right to use the space ends on 31 January 2080, Flughafen Zürich AG has termination options, which have been taken into account. The undiscounted potential future lease payments for periods after the exercise date of the termination options that are not included in the lease term amounted to CHF 91.2 million as at 31 December 2021 (2020: CHF 91.2 million).

In financial year 2020, following the completion of the real estate project the Circle, Flughafen Zürich AG moved into new office premises for which the company signed a 20-year lease with the co-ownership structure the Circle. Taking into account extension options, the lease ends in October 2039.

The Zurich Airport Group leases space that is subleased as car parking space. The average period of use is five years.

The following table shows the carrying amounts of the lease liabilities and the changes during the reporting period:

(CHF million)	2021	2020
Balance as at 1 January	–83.3	–84.6
Additions	–0.5	–5.6
Payments	7.5	6.9
Present value adjustment	0.0	–0.0
Balance as at 31 December	–76.3	–83.3
of which current (payment within 1 year)	–7.5	–7.5
of which non-current (payment from 1 year on)	–68.8	–75.8

A detailed overview of the maturities of the lease liabilities can be found in note 18, Financial liabilities.

In the reporting period, the following amounts were recognised in profit or loss in connection with leases:

(CHF million)	2021	2020
Depreciation charges for right-of-use assets	–7.3	–8.2
Interest expense on lease liabilities	0.0	0.0
Expense relating to short-term leases	–0.1	–0.1
Total amount recognised for leases in profit or loss	–7.4	–8.2

The total cash outflow for leases amounted to CHF 7.4 million in the reporting period (2020: CHF 8.2 million). Future cash outflows for leases not yet commenced as at the reporting date amount to CHF 13.8 million (2020: CHF 17.6 million).

The Zurich Airport Group as lessor

The tenancy agreements entered into by the Zurich Airport Group as lessor may be either fixed tenancy or turnover-based agreements:

Commercial leases

Commercial leases consist primarily of leases of commercial space. These agreements between the parties generally comprise guaranteed basic rents plus turnover-based portions with a fixed term of five years and no other options. Moreover, some agreements involving basic rents and turnover-based portions exist as a function of passenger trends or prior-year sales.

Fixed tenancy agreements

Fixed tenancy agreements comprise in particular agreements for office, warehouse, archive and workshop premises. They are divided into limited-term and indefinite agreements, with the latter usually being subject to either six or twelve months’ notice to be communicated in advance.

Commercial revenue (retail, tax & duty free plus food & beverage) and revenue from facility management (rental and lease agreements) contained conditional rental payments amounting to CHF 6.1 million in the reporting period (2020: CHF 3.1 million); see also note 2, Revenue.

At the reporting date, minimum lease payments (fixed rents and guaranteed basic rents) under non-cancellable leases were as follows:

(CHF million)	31.12.2021	31.12.2020
Due date up to 1 year	239.5	213.1
Due date from 1 to 5 years	800.7	801.3
Due date in more than 5 years	377.0	476.9
Total	1,417.2	1,491.3