Notes to the consolidated financial statements

  • I Accounting policies

    • General remarks

      The consolidated financial statements of the Zurich Airport Group – comprising Flughafen Zürich AG and its subsidiaries –  have been prepared in accordance with the International Financial Reporting Standards (IFRSs) and comply with Swiss law. They have been prepared under the historical cost convention, with the exception of the financial assets of the Airport Zurich Noise Fund, derivative financial instruments, associates and defined benefit obligations.

      The single-entity financial statements of the Group companies, which have been prepared in accordance with uniform accounting policies, have been used as the basis for consolidation. The reporting date for all Group companies is 31 December. The consolidated financial statements are prepared in Swiss francs (CHF). Unless indicated otherwise, amounts are stated in millions of Swiss francs (CHF million). Due to the rules on rounding up or down, individual figures may not add up to precisely the sum total stated. This may also mean that individual amounts round to zero.

      The preparation of financial statements in accordance with IFRSs requires the Management Board to make estimates and assumptions, as well as exercise its discretion, when applying the accounting policies. This may affect reported income, expenses, assets, liabilities and contingent liabilities at the time of preparation of the financial statements. In the event that such estimates and assumptions made in good faith by the Management Board at the time of preparation of the financial statements subsequently deviate from the actual circumstances, the estimates and assumptions originally made are adjusted prospectively in the financial year in which the circumstances changed.

      Judgements made by the Management Board in its application of IFRSs that have a significant effect on the consolidated financial statements, and estimates and assumptions with a significant risk of adjustment in the following financial year, are discussed in II. Judgements and significant estimates and assumptions in the application of accounting policies plus in note 8, Property, plant and equipment and in note 11, Intangible assets, in the notes to consolidated financial statements.

    • New and amended accounting policies

      Changes in accounting policies

      The company adopted the following relevant amendments to International Financial Reporting Standards which are mandatory for the first time for the financial year beginning 1 January 2021:

      • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform (Phase 2)

      The above-mentioned amendments did not have a significant impact on the financial position, results of operations or cash flows of the Zurich Airport Group for financial year 2021.

      Introduction of new standards in 2022 and later

      The following new or amended standards and interpretations issued by the end of 2021 and relevant to the company are not yet effective and were not applied early in these consolidated financial statements.

      Amendments to standards and interpretations

       

       

       

      Effective date

       

      Planned application by the Zurich Airport Group

      Amendments to IAS 16: Property, Plant and Equipment – Proceeds before Intended Use

       

      *

       

      1 January 2022

       

      Financial year 2022

      Amendments to IAS 37: Onerous Contracts – Costs of Fulfilling a Contract

       

      *

       

      1 January 2022

       

      Financial year 2022

      Amendments to IFRS 1: First-time Adoption of IFRS - Subsidiary as a First-time Adopter

       

      *

       

      1 January 2022

       

      Financial year 2022

      Amendments to IFRS 3: Reference to the Conceptual Framework

       

      *

       

      1 January 2022

       

      Financial year 2022

      Amendments to IFRS 9 Financial Instruments – Fees in the "10 per cent" Test for Derecognition of Financial Liabilities

       

      *

       

      1 January 2022

       

      Financial year 2022

      Amendments to IAS 1: Classification of Liabilities as Current or Non-current

       

      *

       

      1 January 2023

       

      Financial year 2023

      Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies

       

      *

       

      1 January 2023

       

      Financial year 2023

      Amendments to IAS 8: Definition of Accounting Estimates

       

      *

       

      1 January 2023

       

      Financial year 2023

      Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction

       

      *

       

      1 January 2023

       

      Financial year 2023

      * No, or no significant, impact is expected on the consolidated financial statements of the Zurich Airport Group.

    • Changes in the consolidated Group

      There were no changes in the consolidated Group in financial year 2021.

    • Changes in the presentation of the consolidated financial statements

      Segment reporting

      The operating segments were adjusted in connection with the changes in the areas of responsibility on the Management Board effective as of 1 May 2021. The “International” segment is therefore presented separately from the “Non-regulated business” segment. The “International” segment comprises the income and expenses of the subsidiaries and equity investments in the Zurich Airport Group’s international operations. This includes the income and expenses of the consolidated concessionaires in India, Brazil and Chile from the operation of the relevant airport infrastructure and income from consulting services. This segment also captures income and expenses from construction projects as part of concession agreements that are accounted for in accordance with IFRIC 12.

    • Summary of significant accounting policies

      Scope and methods of consolidation

      The consolidated financial statements of the Zurich Airport Group comprise Flughafen Zürich AG and all companies in Switzerland and abroad that it directly or indirectly controls. Flughafen Zürich AG controls an entity if it is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

      The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control begins until the date on which control ceases. All assets and liabilities are therefore included in the consolidated financial statements together with all income and expenses in accordance with the principles of full consolidation. All unrealised gains and losses on intragroup transactions and all intragroup balances are eliminated on consolidation.

      Business combinations are accounted for using the acquisition method at the date of acquisition. Consideration transferred in a business combination includes the fair value of the assets transferred, liabilities assumed or incurred and equity instruments issued by the Group. Transaction costs incurred in connection with a business combination are recognised in the income statement. Goodwill arising from a business combination is recognised as an asset. Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of any previously held equity interest in the acquiree over the fair value of the assets acquired and liabilities assumed. Two choices exist regarding the measurement of non-controlling interests. Non-controlling interests are measured at their fair value or at their proportionate share of the recognised amount of the identifiable net assets. When the excess is negative, a bargain purchase gain is recognised immediately in the income statement, after first reassessing the fair value of the net assets acquired.

      Foreign currency translation

      For consolidation purposes, all assets and liabilities reported in the balance sheets of Group companies that have been prepared in foreign currency are translated into Swiss francs (functional currency of the consolidated financial statements of the Zurich Airport Group) at the closing rate. Income statements and cash flow statements are translated at the average exchange rate for the period. Foreign currency differences arising on the translation of balance sheets and income statements are credited/charged directly to the translation reserve in equity. Transactions in foreign currency are translated into Swiss francs at the exchange rate in effect on the day of the transaction.

      Foreign currency monetary items are translated at the exchange rate at the reporting date. Foreign exchange gains/losses that arise from the settlement or remeasurement of foreign currency items at the reporting date are recognised in the income statement.

      Alternative performance indicators

      Earnings before interest, tax, depreciation and amortisation (EBITDA)

      EBITDA comprises earnings before tax, the finance result, the share of profit/loss of associates plus depreciation and amortisation.

      Earnings before interest and tax (EBIT)

      EBIT comprises earnings before tax, the finance result and the share of profit/loss of associates.

      Revenue recognition

      Revenue is recognised by the Zurich Airport Group when the customer obtains control of a service.

      Revenue in the “Aviation” segment primarily comprises passenger and landing charges, and, as of 1 January 2021, noise charges (previously “Noise Segment”). Charges for providing assistance to passengers with reduced mobility are received by the “PRM” segment, while the “User fees” segment primarily receives fees for the use of the central infrastructure. Revenue in the “Air security” segment mainly includes security charges. Revenue is recognised immediately on rendering the service in question. Landing charges are billed per landing according to the weight of the aircraft. Passenger charges, fees for the use of the baggage sorting and handling system and security charges are based on the number of departing passengers. Noise charges are based, in turn, on the number of departing passengers and on an emissions-based charge according to the aircraft type.

      The main components in the “Non-regulated business” segment are revenue from the marketing and rental of the commercial infrastructure at the airport (retail, tax & duty free, food & beverage operations, advertising media, parking, rental and leasing agreements, and energy and utility cost allocation). The service is rendered as soon as the commercial space is made available and the revenue recognised accordingly. For fixed-rent tenancy agreements classified as operating leases, the rents are recognised on a straight-line basis over the term of the tenancy agreement. Conditional rental payments (e.g. from turnover-based tenancy agreements) are recognised on an accrual basis based on the turnover generated by the lessee, in which case a minimum rent may be applied. If lessees are granted significant lease incentives (e.g. rent-free periods or other rent concessions), the equivalent value of the incentive is recognised on a straight-line basis over the original or remaining lease term as an adjustment to the rental income. Any lease credit losses suffered as a consequence of lockdowns in connection with the coronavirus crisis are recognised in profit or loss when incurred. The company does not currently have any tenancy agreements classified as finance leases.

      Finance result

      The finance result comprises interest payments on borrowings calculated using the effective interest method (excluding borrowing costs relating to buildings under construction), interest expense as a result of adjusting the present value of provisions and non-current liabilities, interest and dividend income, foreign currency gains and losses, and gains and losses on financial assets.

      Interest income is recognised in the income statement using the effective interest method. Dividend income is recognised in the financial statements at the due date.

      Borrowing costs arising during the construction stage for movables, buildings and engineering structures are capitalised up until the date the asset is taken into use or at the date of completion, if earlier.

      Property, plant and equipment

      Property, plant and equipment is stated at acquisition or construction cost, less accumulated depreciation and accumulated impairment losses. The construction cost of buildings includes direct costs for labour (third-party services and internal personnel), materials and overheads, plus the borrowing costs arising during the construction stage, which are capitalised up until the date the asset is taken into use or at the date of completion, if earlier. Borrowing costs and expenditure relating to significant assets under construction are capitalised.

      Components of an item of property, plant and equipment with a different useful life are reported individually and depreciated separately. Expansion and replacement expenditure is capitalised only if it is probable that future economic benefits will flow to the Zurich Airport Group. Maintenance and renovation expenditure is charged to the income statement when incurred.

      The assets (with the exception of land, which is not depreciated) are depreciated using the straight-line method over the estimated useful life or over the term of the lease, whichever is shorter. The useful life for each category of property, plant and equipment is as follows:

      • Buildings: maximum 30 years
      • Engineering structures: maximum 30 years
      • Movables: 4 to 20 years

      Projects in progress are stated at acquisition or production cost and include investments in projects that have not yet been billed. These mainly comprise assets under construction. Once a project has been put into operation and billed, the related asset is transferred to the relevant category of property, plant and equipment and segment and depreciated over its useful life. From the date the asset is taken into use, or from the date of completion, no further borrowing costs are capitalised.

      Government subsidies and grants related to investments are deducted from the carrying amount in the relevant balance sheet items and recognised in profit or loss over the useful life of the related asset. They are reported in the income statement as an adjustment to the depreciation of the related asset. All government subsidies take the form of “a fonds perdu” grants and do not have to be repaid.

      Leases as lessee

      At inception of a contract, the Zurich Airport Group assesses whether the contract is, or contains, a lease. This is the case if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. This assessment requires a certain amount of judgement.

      The Zurich Airport Group recognises the right-of-use asset and the lease liability at the commencement date of the lease. The right-of-use asset is presented in “Right-of-use assets” and the lease liability as a current or non-current financial liability, depending on its maturity. The initial measurement of the right-of-use asset is based on the present value of the lease payments, plus any initial direct costs and costs for the obligation to dismantle and remove the asset and restore the site, less any incentives received. When calculating the present value of the lease payments, the company uses its incremental borrowing rate at the commencement date, as the interest rate implicit in the lease cannot be readily determined. The right-of-use asset is depreciated over the shorter of the lease term and the useful life of the underlying asset. The right-of-use asset is tested for impairment if there are indicators of impairment. If the lease contains an extension or purchase option that the company believes it is reasonably certain to exercise, the costs related to the option are included in the lease payments.

      The Zurich Airport Group has decided not to recognise the right-of-use asset and the lease liability if the lease term is twelve months or less or if the lease relates to IT equipment of low value (less than CHF 5,000). Payments for such leases are recognised on a straight-line basis over the term of the contract.

      Investment property

      Investment property (in accordance with IAS 40) is property held for the long term to earn rentals or for capital appreciation. It is measured at initial recognition at its cost and subsequently at cost less straight-line depreciation and any impairment losses in accordance with IAS 36.

      In the case of projects, the costs incurred are billed and allocated to the relevant categories of investment property at the date when the related assets are brought into use. The assets are then depreciated over their useful lives.

      The useful life for each category of investment property is as follows:

      • Buildings: maximum 40 years
      • Engineering structures: maximum 50 years
      • Movables: 4 to 20 years

      Joint arrangements

      A joint arrangement (in accordance with IFRS 11) is a contractual arrangement between two or more parties which gives those parties joint control of an activity. Each joint arrangement must be classified as either a joint operation or a joint venture. In a joint operation, the parties that have joint control have rights to the assets and obligations for the liabilities of the joint arrangement and account for them in relation to their interest. In a joint venture, the parties that have joint control merely have rights to the net assets of the joint arrangement (the investment is accounted for using the equity method).

      Intangible assets

      Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised using the straight-line method.

      With the award of the operating licence for Zurich Airport, Flughafen Zürich AG was also granted a right of formal expropriation in respect of property owners exposed to aircraft noise. This right of formal expropriation was granted on condition that the airport operator bears the costs associated with compensation payments and is recognised as an intangible asset at the date when the probable total cost can be estimated based on final-instance court rulings, so that the cost can be reliably estimated in accordance with IAS 38.21. The timing of recognition may differ depending on the airport region. At the same time as an intangible asset is recognised at the present value of the expected future payments, an equal amount is recognised as a provision. Any future adjustments to the probable total cost already recognised as assets and liabilities will be reflected on both sides of the balance sheet. The intangible asset is amortised using the straight-line method over the remaining duration of the operating licence (i.e. until May 2051).

      In the case of clearly defined projects, external and internal costs directly attributable to the development of computer software are capitalised if they will be exceeded by the future economic benefits. The useful life of software is three to five years.

      Investments in airport operator projects

      If concession agreements for the operation of foreign airports fall within the scope of IFRIC 12, they are generally accounted for under the intangible asset model (IFRIC 12.17). In this case, the concessionaire receives the right as operator to charge for usage as consideration for the obligation to pay concession fees and provide upgrade services. The obligations under the concession agreements to pay fixed concession fees are recognised as financial liabilities. They are initially measured at the fair value of the liabilities using a discount rate appropriate to the risk. The rights to operate the airports that are received as consideration are recognised as intangible assets in the same amount and presented as investments in airport operator projects. The rights received as consideration for the upgrade services provided are recognised as an intangible asset on an accrual basis at the cost of construction. Revenues and costs relating to upgrade services are generally recognised in accordance with IFRIC 12.14. The financial liabilities recognised are subsequently measured at amortised cost using the effective interest method. The rights recognised as assets are subsequently measured at cost less accumulated amortisation over the term of the concessions. In accordance with IFRIC 12.18, any minimum revenue guaranteed by the grantor is deducted from the intangible asset and accounted for as a financial asset.

      Investments in associates

      Associates are companies where the Zurich Airport Group is able to exercise significant influence, but not control, over the financial and operating policies (where the Group holds between 20% and 50% of the voting rights). Associates are included in the consolidated financial statements by applying the equity method. Any difference between the cost of the investment and the fair value of the share of net assets acquired is determined at the time of acquisition and recognised as goodwill and included in the carrying amount of the investment. In subsequent reporting periods, the carrying amount is adjusted to recognise Flughafen Zürich AG’s share of any profit or loss and changes recognised in other comprehensive income of the investee and any dividends received.

      Investments in associates where the Group holds less than 20% of the voting rights, but where it nonetheless is able to exercise significant influence, are also included in the consolidated financial statements by applying the equity method.

      Financial assets of the Airport Zurich Noise Fund

      In accordance with the principles in IFRS 9, the financial assets of the Airport Zurich Noise Fund are classified as at amortised cost (bonds) or at fair value through profit or loss (other financial assets).

      Derivative financial instruments

      Derivative financial instruments are used exclusively for the purpose of hedging interest rate and currency risks, and are recognised as other receivables or other current liabilities at fair value. Changes in fair value are recognised in the income statement.

      Inventories

      Inventories mainly comprise operating supplies and consumables used for the maintenance and repair of property, plant and equipment and are stated at cost or, if lower, at net realisable value. The first-in, first-out method is applied when calculating the cost.

      Receivables

      Receivables are measured initially at fair value and subsequently at amortised cost, which is usually their nominal value, minus individual allowances for doubtful accounts. As soon as there is sufficient evidence that a receivable will not be recoverable, it is directly written off or offset against the corresponding allowances.

      Flughafen Zürich AG uses a simplified method to calculate expected credit losses on trade receivables. Changes in credit risk are not tracked; instead, a loss allowance is recognised at each reporting date on the basis of the lifetime expected credit losses. In addition to forward-looking factors specific to the borrowers and general economic conditions, credit loss experience to date is also taken into account.

      The recoverable amount of receivables is the present value of the estimated future cash flows. Impairment losses on receivables are reversed if the amount of the impairment loss decreases and the decrease is related to an event that occurred in a period after the impairment loss was recognised.

      Cash and cash equivalents

      Cash and cash equivalents comprise cash on hand, in postal accounts and at banks and short-term investments with a maturity of 90 days or less from the date of acquisition.

      Impairment of assets

      The carrying amounts of non-current non-financial assets (excluding deferred taxes) are assessed once a year for indications of impairment. If such indications exist, impairment tests are performed for cash-generating units (CGU) and non-financial assets in accordance with IAS 36.

      An impairment exists if the carrying amount of a CGU or a non-financial asset exceeds its recoverable amount (higher of fair value less costs of disposal and value in use).

      Value in use is calculated using the discounted cash flow (DCF) method, where the discount rate applied is a post-tax rate that reflects the risks associated with the relevant asset. If an asset does not generate cash inflows that are largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

      Impairment losses are recognised in profit or loss. They may be reversed if there are indications that the impairment loss has decreased or no longer exists and if there has been a change in the estimates used to determine recoverable amount.

      The increased carrying amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognised in prior years.

      Equity

      Share capital

      Shares are classified as equity since they are non-redeemable and dividend payments are at the discretion of the company.

      Treasury shares

      The cost (purchase price and directly attributable transaction costs) of treasury shares is deducted from equity.

      Dividends

      Dividends are recognised as a liability as soon as they have been approved at the General Meeting of Shareholders.

      Financial liabilities

      Financial liabilities are initially recognised at fair value less transaction costs. The difference between the carrying amount and the redemption amount is amortised over the term of the liability using the effective interest method.

      Provisions

      Provisions are recognised when the entity has a present obligation as a result of a past event that occurred prior to the reporting date, if an outflow of resources is probable and the amount of the outflow can be estimated reliably. If the effect is significant, provisions are reported in the balance sheet at their present value.

      Provisions for legal and constructive obligations for sound insulation and resident protection measures are recognised on the basis of the Environmental Protection Act as soon as they can be estimated reliably.

      Provisions for formal expropriations are recognised for compensation payments as soon as the probable total cost can be estimated reliably based on final-instance court rulings (see Intangible assets).

      Employee benefits

      For defined benefit plans, the benefit cost and the defined benefit obligation are determined on the basis of various economic and demographic assumptions using the projected unit credit method and taking into account the past years of insurance up until the measurement date. The assumptions required to be made by the Zurich Airport Group include, among others, expectations about future salary increases, the long-term return on retirement savings accounts, employee turnover and life expectancy. The calculations are performed annually by independent actuaries. The plan assets are measured annually at fair value and deducted from the defined benefit obligation.

      The defined benefit cost consists of three components:

      • service cost, which is recognised in the income statement within personnel expenses;
      • net interest expense, which is recognised in the income statement within finance costs; and
      • remeasurement components, which are recognised in other comprehensive income.

      Service cost comprises current service cost, past service cost and gains and losses on settlement. Gains and losses resulting from curtailments are regarded as past service cost. Employee contributions and contributions from third parties reduce service cost and are deducted from it if they are set out in the formal terms of the plan or arise from a constructive obligation.

      The net interest expense is the amount calculated by multiplying the net defined benefit liability (or asset) by the discount rate, both as at the beginning of the financial year, including any changes during the period as a result of contributions and benefit payments. Cash flows and changes during the year are factored in pro rata.

      Remeasurement components comprise actuarial gains and losses resulting from changes in the present value of the defined benefit obligations due to changes in assumptions and experience adjustments, the return on plan assets less amounts included in net interest expense, and changes in unrecognised assets less effects included in net interest expense. Remeasurement components are recognised in other comprehensive income and cannot be recycled.

      The amount recognised in the consolidated financial statements is the surplus or deficit of the defined benefit plans (net defined benefit liability or asset). However, the asset recognised as a result of any surplus is limited to the present value of economic benefits to the Group available in the form of reductions in future contributions.

      Employer contributions to defined contribution plans are recognised in the income statement as personnel expenses when the employee earns the benefit entitlement. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss.

      For other long-term employee benefits, the present value of the obligation is recognised at the end of the reporting period. Changes in the present value are recognised in the income statement as personnel expenses.

      Share-based payment

      Flughafen Zürich AG’s annual bonus programme provides for one-third of the allocated bonus to be paid out to members of the Management Board and eligible members of management in the form of shares. The share-based payment is recognised as an expense with a corresponding increase in equity.

      Income taxes

      Income taxes comprise current and deferred taxes. They are recognised in the income statement unless relating to transactions recognised in other comprehensive income or directly in equity. In these cases, taxes are also recognised in other comprehensive income or directly in equity.

      Current taxes comprise the taxes expected to be payable on the taxable result, calculated using tax rates enacted or substantively enacted at the reporting date.

      Deferred taxes are recognised for temporary differences between the carrying amount of assets and liabilities in the consolidated financial statements and their tax base using the balance sheet liability method. No deferred taxes are recognised for temporary differences in the following cases: the initial recognition of goodwill, the initial recognition of an asset or a liability in a transaction that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Measurement of deferred taxes takes into account the expected timing and manner of realisation or settlement of the assets and liabilities concerned using tax rates that are enacted or substantively enacted at the reporting date.

      Deferred tax assets are only recognised if it is probable that the deductible temporary differences can be offset against future taxable profits.

      Segment reporting

      Reporting of operating segments is carried out in accordance with IFRS 8 in line with the internal reporting to the company’s chief operating decision-maker. The Board of Directors of Flughafen Zürich AG has been identified as chief operating decision-maker of the Zurich Airport Group responsible for major decisions concerning the allocation of resources and the assessment of the operating segments’ performance.

  • II Judgements and significant estimates and assumptions in the application of accounting policies

    • Reporting of noise-related costs in the consolidated financial statements

      With respect to formal expropriations, the reporting of noise-related costs in the financial statements is a complex matter due to a multitude of relevant legal bases, unclear or pending case law and political debate. Especially in the case of formal expropriations, this financial reporting requires significant assumptions and estimates concerning the capitalisation of such costs and the obligation to recognise appropriate provisions.

      Flughafen Zürich AG has received a total of around 20,000 noise-related claims for compensation, of which around 5600 were still pending at the end of 2021. Slightly more than 600 of these cases are currently being examined by the Swiss Federal Assessments Commission.

      The rulings by the Swiss Federal Supreme Court in the first half of 2008 on fundamental issues related to formal expropriations enabled Flughafen Zürich AG to estimate the total cost of compensation for formal expropriations for the first time, in spite of the remaining uncertainties regarding the accuracy of this estimate. In further rulings in 2010, the Swiss Federal Supreme Court definitively set the cut-off date for the foreseeability of an eastern approach as 1 January 1961 and, in 2011, it ruled definitively on the method used to calculate a decline in the market value of investment property. In 2016, the Swiss Federal Supreme Court handed down two rulings in test cases regarding claims for compensation relating to eastern and southern approach routes and, in 2018, it handed down two rulings in test cases regarding cooperative ownership. In November 2019, the Swiss Federal Supreme Court handed down a ruling in test cases regarding the period of limitation on claims for compensation in Oberglatt. Based on these Swiss Federal Supreme Court rulings and other fundamental issues that have been decided, the company undertook a reappraisal of costs for formal expropriations at these dates, which in each case led to an adjustment to both the provision for formal expropriations and the intangible asset from the right of formal expropriation.

      As at the reporting date, the estimated costs for formal expropriations remained unchanged at CHF 330.0 million, of which CHF 85.6 million had already been paid out at that date. As at 31 December 2021, a provision was recognised for the outstanding costs of CHF 244.4 million (see note 19, Provision for formal expropriations plus sound insulation and resident protection).

      Depending on future legal judgements, including with respect to the southern approaches at Zurich Airport, 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.

      With respect to sound insulation and resident protection measures, the Federal Office of Civil Aviation (FOCA) required Flughafen Zürich AG, in connection with its 2014 operating regulations application, to submit an extended sound insulation programme. In June 2015, based on the sound insulation programme submitted, the Board of Directors approved a further CHF 100.0 million of measures in addition to the CHF 240.0 million of costs previously estimated for sound insulation and resident protection. The company is also required to implement sound insulation measures in the area where it claims exemptions from noise limits (emission limit). In this context, the FOCA initiated a night-time noise abatement procedure. The area with exemptions under the Sectoral Aviation Infrastructure Plan adopted by the Federal Council on 23 August 2017 was extended. In this context in mid-2018, Flughafen Zürich AG recognised a provision for further costs of CHF 60.0 million, in addition to the costs previously estimated for sound insulation and resident protection.

      As at the reporting date, the estimated costs for sound insulation and resident protection measures remained unchanged at CHF 400.0 million, of which CHF 289.3 million had already been paid out at that date. As at 31 December 2021, a provision was recognised for the outstanding costs of CHF 110.7 million (see note 19, Provision for formal expropriations plus sound insulation and resident protection).

    • Impairment of assets in accordance with IAS 36

      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 the Zurich Airport Group. As these circumstances indicate that the carrying amount of assets could be impaired, the company performed an impairment test for its cash-generating units (CGU) and non-financial assets in accordance with IAS 36.

      An impairment exists if the carrying amount of a CGU or a non-financial asset exceeds its recoverable amount (higher of fair value less costs of disposal and value in use).

      Value in use is calculated using the discounted cash flow (DCF) method. In doing so, cash flows are derived for the CGU Zurich Airport site from the long-term budget approved for the period to 2031 and in the case of investments in airport operator projects from the budget over the remaining terms (5 to 28 years) of the concession agreements. These budgets and forecasts are based on past experience and expected market trends and take into account the effects of the COVID-19 pandemic. The key assumptions used to determine recoverable amount for the different CGUs and non-financial assets are disclosed and explained in further detail below:

      Zurich Airport site

      Recoverable amount was determined for the CGU Zurich Airport site as at 31 December 2021 based on a value in use calculation using cash flow forecasts derived from the long-term budget approved for the period to 2031. The post-tax discount rate (WACC) applied to the cash flow forecasts was 5.5% (previous year: 5.5%) and the cash flows were extrapolated beyond the forecast period using a real growth rate of 0.5% (previous year: 0.5%).

      Investments in airport operator projects

      Recoverable amount was determined for investments in airport operator projects as at 31 December 2021 based on value in use calculations using cash flow forecasts from the financial budgets for the remaining terms of the contractually agreed concessions (5 to 28 years). The country-specific WACC applied to the cash flow forecasts ranged from 9.0% to 10.3% (previous year: 7.9% to 10.3%).

      Result

      As at 31 December 2021, no impairment losses were required to be recognised for the assets concerned as a result of the impairment test on the CGUs and non-financial assets.

  • III Notes to the consolidated financial statements

    • 1 Segment reporting

      The following table shows the reportable segments in the current financial year:

      (CHF million)

       

      Regulated business

       

      Noise

       

      Non-regulated business

       

      International 1)

       

      Eliminations

       

      Consolidated

      2021

       

       

       

       

       

       

      Revenue from contract with customers (IFRS 15)

       

      240.4

       

      0.0

       

      109.0

       

      55.4

       

      0.0

       

      404.8

      Other revenue (non IFRS 15)

       

      0.2

       

      0.0

       

      275.0

       

      0.0

       

      0.0

       

      275.2

      Total revenue from third parties

       

      240.6

       

      0.0

       

      384.0

       

      55.4

       

      0.0

       

      680.0

      Inter-segment revenue

       

      22.8

       

      0.0

       

      66.8

       

      0.0

       

      –89.6

       

      0.0

      Total revenue

       

      263.4

       

      0.0

       

      450.8

       

      55.4

       

      –89.6

       

      680.0

      Personnel expenses

       

      –61.2

       

      –1.7

       

      –97.9

       

      –10.5

       

      0.0

       

      –171.3

      Other operating expenses

       

      –128.6

       

      –0.9

       

      –52.7

       

      –27.3

       

      0.0

       

      –209.5

      Inter-segment operating expenses

       

      –70.2

       

      –0.8

       

      –18.6

       

      0.0

       

      89.6

       

      0.0

      Segment result (EBITDA)

       

      3.5

       

      –3.3

       

      281.5

       

      17.6

       

      0.0

       

      299.2

      Depreciation and amortisation

       

      –144.7

       

      –3.6

       

      –124.2

       

      –7.6

       

      0.0

       

      –280.2

      Segment result (EBIT)

       

      –141.2

       

      –6.9

       

      157.3

       

      9.9

       

      0.0

       

      19.1

      Finance result

       

       

       

       

       

       

       

       

       

       

       

      –29.1

      Share of result of associates

       

       

       

       

       

       

       

       

       

       

       

      –3.7

      Income tax expense

       

       

       

       

       

       

       

       

       

       

       

      3.6

      Consolidated result

       

       

       

       

       

       

       

       

       

       

       

      –10.1

       

       

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 31 December 2021

       

      1,869.6

       

      110.3

       

      1,937.2

       

      384.9

       

       

       

      4,302.0

      Non-interest-bearing non-current liabilities 2)

       

       

       

       

       

       

       

       

       

       

       

      449.5

      Non-interest-bearing current liabilities 3)

       

       

       

       

       

       

       

       

       

       

       

      211.7

      Total assets as at 31 December 2021

       

       

       

       

       

       

       

       

       

       

       

      4,963.2

       

       

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %)

       

      –6.1

       

      –4.9

       

      6.6

       

      2.2

       

       

       

      0.4

       

       

       

       

       

       

       

       

       

       

       

       

       

      Capital expenditure

       

      84.2

       

      0.0

       

      97.3

       

      38.1

       

       

       

      219.6

      Investments in associates

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

       

       

      0.0

      1) As of financial year 2021, the "International" segment will be presented separately from the "Non-regulated business” segment due to the changes in the areas of responsibility on the Management Board. For the purposes of comparison, the prior-year figures were adjusted accordingly.

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

      3) 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.

      (CHF million)

       

      Aviation

       

      PRM

       

      User fees

       

      Air security 5)

       

      Access fees 5)

       

      Eliminations

       

      Total regulated business

      2021

       

       

       

       

       

       

       

      Revenue from contract with customers (IFRS 15)

       

      149.4

       

      4.6

       

      31.4

       

      54.4

       

      0.6

       

      0.0

       

      240.4

      Other revenue (non IFRS 15)

       

      0.2

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.2

      Revenue from third parties

       

      149.6

       

      4.6

       

      31.4

       

      54.4

       

      0.6

       

      0.0

       

      240.6

      Inter-segment revenue

       

      21.3

       

      0.0

       

      4.6

       

      9.0

       

      2.5

       

      –14.6

       

      22.8

      Total revenue

       

      170.9

       

      4.6

       

      36.1

       

      63.4

       

      3.1

       

      –14.6

       

      263.4

      Personnel expenses

       

      –51.7

       

      0.0

       

      –6.7

       

      –2.1

       

      –0.7

       

      0.0

       

      –61.2

      Other operating expenses

       

      –35.3

       

      –7.1

       

      –4.0

       

      –40.2

       

      –42.0

       

      0.0

       

      –128.6

      Inter-segment operating expenses

       

      –50.8

       

      –0.8

       

      –12.7

       

      –8.4

       

      –12.0

       

      14.6

       

      –70.2

      EBITDA

       

      33.0

       

      –3.2

       

      12.7

       

      12.6

       

      –51.7

       

      0.0

       

      3.5

      Depreciation and amortisation

       

      –105.4

       

      –0.2

       

      –29.1

       

      –6.8

       

      –3.3

       

      0.0

       

      –144.7

      EBIT

       

      –72.4

       

      –3.4

       

      –16.4

       

      5.8

       

      –54.9

       

      0.0

       

      –141.2

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 31 December 2021

       

      1,315.2

       

      7.9

       

      407.0

       

      116.2

       

      23.3

       

       

       

      1,869.6

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %)

       

      –4.4

       

      -36.8

       

      –3.4

       

      4.1

       

      –195.0

       

       

       

      –6.1

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Operating assets pursuant to Ordinance on Airport Charges (OAC) 4)

       

      1,210.3

       

      3.4

       

      387.1

       

      67.9

       

      20.3

       

       

       

      1,689.0

      ROIC (in %) pursuant to OAC

       

      –4.6

       

      –87.7

       

      –3.5

       

      7.0

       

      –206.9

       

       

       

      –6.6

      4) The Ordinance on Airport Charges (OAC) defines operating assets, on which a reasonable rate of return forms the basis for the charges, as the sum of the “residual cost of the existing assets and net working capital”. This definition therefore results in minor deviations compared with the reported capital employed.

      5) 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 pursuant to OAC of the “Air security” segment amounts to 7.0%.

      The following table shows the reportable segments in the previous year:

      (CHF million)

       

      Regulated business

       

      Noise

       

      Non-regulated business

       

      International 1)

       

      Eliminations

       

      Consolidated

      2020

       

       

       

       

       

       

      Revenue from contract with customers (IFRS 15)

       

      216.0

       

      5.5

       

      93.0

       

      63.4

       

      0.0

       

      377.9

      Other revenue (non IFRS 15)

       

      0.2

       

      0.0

       

      245.9

       

      0.0

       

      0.0

       

      246.1

      Total revenue from third parties

       

      216.2

       

      5.5

       

      338.9

       

      63.4

       

      0.0

       

      624.0

      Inter-segment revenue

       

      23.5

       

      0.0

       

      71.7

       

      0.0

       

      –95.2

       

      0.0

      Total revenue

       

      239.7

       

      5.5

       

      410.6

       

      63.4

       

      –95.2

       

      624.0

      Personnel expenses

       

      –62.5

       

      –1.6

       

      –103.1

       

      –12.1

       

      0.0

       

      –179.3

      Other operating expenses

       

      –145.5

       

      –1.4

       

      –56.9

       

      –44.8

       

      0.0

       

      –248.7

      Inter-segment operating expenses

       

      –69.6

       

      –0.8

       

      –24.8

       

      0.0

       

      95.2

       

      0.0

      Segment result (EBITDA)

       

      –37.9

       

      1.7

       

      225.8

       

      6.4

       

      0.0

       

      196.0

      Depreciation and amortisation

       

      –138.0

       

      –3.6

       

      –102.9

       

      –8.0

       

      0.0

       

      –252.6

      Segment result (EBIT)

       

      –176.0

       

      –1.9

       

      122.9

       

      –1.6

       

      0.0

       

      –56.6

      Finance result

       

       

       

       

       

       

       

       

       

       

       

      –24.8

      Share of result of associates

       

       

       

       

       

       

       

       

       

       

       

      –3.1

      Income tax expense

       

       

       

       

       

       

       

       

       

       

       

      15.4

      Consolidated result

       

       

       

       

       

       

       

       

       

       

       

      –69.1

       

       

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 31 December 2020

       

      1,891.7

       

      115.8

       

      1,937.6

       

      343.2

       

       

       

      4,288.2

      Non-interest-bearing non-current liabilities 2)

       

       

       

       

       

       

       

       

       

       

       

      560.2

      Non-interest-bearing current liabilities 3)

       

       

       

       

       

       

       

       

       

       

       

      223.6

      Total assets as at 31 December 2020

       

       

       

       

       

       

       

       

       

       

       

      5,072.0

       

       

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %)

       

      –7.9

       

      –1.3

       

      5.5

       

      –0.3

       

       

       

      –1.1

       

       

       

       

       

       

       

       

       

       

       

       

       

      Capital expenditure

       

      128.8

       

      0.1

       

      254.3

       

      30.2

       

       

       

      413.5

      Investments in associates

       

      0.0

       

      0.0

       

      0.0

       

      3.7

       

       

       

      3.7

      1) As of financial year 2021, the "International" segment will be presented separately from the "Non-regulated business” segment due to the changes in the areas of responsibility on the Management Board. For the purposes of comparison, the prior-year figures were adjusted accordingly.

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

      3) 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.

      (CHF million)

       

      Aviation

       

      PRM

       

      User fees

       

      Air security 5)

       

      Access fees 5)

       

      Eliminations

       

      Total regulated business

      2020

       

       

       

       

       

       

       

      Revenue from contract with customers (IFRS 15)

       

      136.0

       

      4.1

       

      27.6

       

      47.6

       

      0.7

       

      0.0

       

      216.0

      Other revenue (non IFRS 15)

       

      0.2

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.2

      Revenue from third parties

       

      136.2

       

      4.1

       

      27.6

       

      47.6

       

      0.7

       

      0.0

       

      216.2

      Inter-segment revenue

       

      22.1

       

      0.0

       

      2.7

       

      11.3

       

      2.3

       

      –14.9

       

      23.5

      Total revenue

       

      158.3

       

      4.1

       

      30.3

       

      58.9

       

      3.0

       

      –14.9

       

      239.7

      Personnel expenses

       

      –53.0

       

      0.0

       

      –6.9

       

      –1.9

       

      –0.7

       

      0.0

       

      –62.5

      Other operating expenses

       

      –43.6

       

      –6.4

       

      –4.5

       

      –46.6

       

      –44.4

       

      0.0

       

      –145.5

      Inter-segment operating expenses

       

      –51.1

       

      –0.8

       

      –11.6

       

      –6.9

       

      –14.1

       

      14.9

       

      –69.6

      EBITDA

       

      10.6

       

      –3.1

       

      7.3

       

      3.4

       

      –56.2

       

      0.0

       

      –37.9

      Depreciation and amortisation

       

      –103.2

       

      –0.2

       

      –24.6

       

      –6.9

       

      –3.2

       

      0.0

       

      –138.0

      EBIT

       

      –92.6

       

      –3.3

       

      –17.3

       

      –3.5

       

      –59.3

       

      0.0

       

      –176.0

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Invested capital as at 31 December 2020

       

      1,366.7

       

      7.1

       

      380.0

       

      115.5

       

      22.3

       

       

       

      1,891.7

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      ROIC (in %)

       

      –5.6

       

      -66.7

       

      –3.9

       

      –3.5

       

      –178.2

       

       

       

      –7.9

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Operating assets pursuant to Ordinance on Airport Charges (OAC) 4)

       

      1,268.9

       

      2.9

       

      361.7

       

      67.9

       

      22.7

       

       

       

      1,724.1

      ROIC (in %) pursuant to OAC

       

      –5.7

       

      –102.2

       

      –4.0

       

      –4.2

       

      –180.8

       

       

       

      –8.1

      4) The Ordinance on Airport Charges (OAC) defines operating assets, on which a reasonable rate of return forms the basis for the charges, as the sum of the “residual cost of the existing assets and net working capital”. This definition therefore results in minor deviations compared with the reported capital employed.

      5) 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 pursuant to OAC of the “Air security” segment amounts to –54.6%.

      Internal reporting of operating segments to the chief operating decision-maker is carried out in accordance with the Swiss Ordinance on Airport Charges (OAC), more specifically with regard to the regulated charges and fees affected by the Ordinance. The following segments are presented for the regulated business and submitted to the chief operating decision-maker as the basis for his significant judgements and decisions:

      • “Aviation” segment
      • “PRM” segment
      • “User fees” segment
      • “Air security” segment
      • “Access fees” segment

      The “Regulated business” column presented in the segment reporting tables is not a separate segment in accordance with IFRS 8; for presentation reasons, it merely combines the reportable segments in which charges and fees are regulated by the OAC (excluding the “Noise” segment).

      As of 1 January 2021, income from aircraft noise charges are allocated to the “Aviation” segment as, according to current knowledge, the Airport Zurich Noise Fund (AZNF) has sufficient resources to cover the known costs for sound insulation, resident protection and formal expropriations.

      In all, the Zurich Airport Group therefore has the following reportable segments:

      → Aviation

      The “Aviation” segment comprises the original infrastructure and services related to flight operations. It incorporates all the core services provided to airlines and passengers by Flughafen Zürich AG in its capacity as operator of Zurich Airport. These services include the runway system, most apron zones (including control activities), passenger zones in the terminals, freight operations, passenger handling and services, and safety. The main sources of revenue for the “Aviation” segment are passenger and landing charges. Revenue from third parties is determined by passenger volumes, flight volumes and the trend with respect to aircraft take-off weights. As of 1 January 2021, aircraft noise charges are also allocated to this segment.

      → PRM

      The “PRM” (People with Reduced Mobility) segment combines the infrastructure and services related to implementing the regulation regarding the provision of support for passengers with reduced mobility. Revenue consists exclusively of the PRM charge.

      → User fees

      The “User fees” segment comprises the central infrastructure, in particular the check-in areas and facilities, baggage sorting and handling system, aircraft power supply system, handling apron areas and the related services and fees.

      → Air security

      The “Air security” segment comprises the equipment and services that Flughafen Zürich AG is responsible for providing for air security (passenger and aircraft security measures). This includes all systems and their operation and maintenance designed to prevent actions of any kind that affect the security of commercial civil aviation, in particular facilities for checks on passengers, hand luggage, checked baggage and freight. The security charges levied per passenger are the main source of revenue for covering the costs of the “Air security” segment.

      → Access fees

      The “Access fees” segment comprises the air security-related equipment and services that have to be provided in order to allow all persons other than passengers to access the airside areas. This includes all relevant systems and their operation and maintenance. It also includes airport policing duties such as surveillance patrols and other security-related duties. Revenue in the “Access fees” segment comes mainly from the fees for issuing airport badges.

      → Noise

      As of 1 January 2021, income from aircraft noise charges are allocated to the “Aviation” segment as, according to current knowledge, the Airport Zurich Noise Fund (AZNF) has sufficient resources to cover the known costs for sound insulation, resident protection and formal expropriations. The related expenses continue to be presented separately in the “Noise” segment. A liquidity-based statement of all noise-related data is presented in the notes to the consolidated financial statements (see note 20, Airport Zurich Noise Fund). This statement presents the accumulated surplus or shortfall as at the reporting date arising from noise charges determined on a costs-by-cause basis, less expenses for formal expropriations, sound insulation and resident protection measures, and operating costs.

      → Non-regulated business

      The “Non-regulated business” segment encompasses all activities relating to the development, marketing and operation of the commercial infrastructure at Zurich Airport. This includes all retail and restaurant/catering operations at the airport, revenue from rented premises and supplementary costs (energy supply, etc.), parking charges plus a broad range of commercial services provided by Flughafen Zürich AG.

      → International

      The “International” segment comprises the income and expenses of the subsidiaries and equity investments in the Zurich Airport Group’s international operations. This includes the income and expenses of the consolidated concessionaires in India, Brazil and Chile from the operation of the relevant airport infrastructure and income from consulting services. This segment also captures income and expenses from construction projects as part of concession agreements that are accounted for in accordance with IFRIC 12.

      Principles of segment reporting

      For internal reporting purposes, each profit center has been allocated to a segment. Any internal supplies and services that have been provided to other segments have been booked as inter-segment revenue or offset against costs. For example, the “Supplementary costs” profit center is allocated to Non-regulated business and proportionate costs are charged to the Regulated business segments on a costs-by-cause basis. Support functions are also allocated to Non-regulated business and charged on accordingly.

      Invested capital is allocated to the individual operating segments based, firstly, on the allocation of the individual assets in the fixed-asset ledger and, secondly, on the pro rata allocation of the remaining assets (buildings, engineering structures and net working capital) to the respective segments. Until projects in progress have been completed, they are allocated to the segment with the largest share of the project measured by value. The definitive allocation to segments takes place after the projects have been classified into the relevant asset categories.

      The identified operating segments have not been aggregated.

      Additional disclosures in accordance with the Swiss Ordinance on Airport Charges (OAC)

      In accordance with Art. 34 OAC, 30% of the economic added value in the airside area of Zurich Airport not relevant to flight operations and in road vehicle parking is to be used in the form of a transfer payment to finance the costs in the “Aviation” segment. Pursuant to this rule, in financial year 2021, an amount of CHF 1.3 million (previous year: CHF 0.0 million) was allocated to the “Aviation” segment and is reflected in the reported return on operating assets. Moreover, in accordance with Art. 45 OAC, the shortfall in the “Access fees” segment can be charged to the “Air security” segment.

      Revenue from security charges is allocated in full to the “Security” segment and revenue from PRM charges to the “PRM” segment. All other flight operations charges (with the exception of aircraft noise charges until the end of 2020) are allocated to the “Aviation” segment. A breakdown of revenue by charge type can be found in note 2, Revenue.

      Additional disclosures

      The Zurich Airport Group primarily provides services within Switzerland. In financial year 2021, consulting services totalling CHF 5.4 million (2020: CHF 4.8 million) were provided abroad, more specifically in Brazil and Chile.

      Flughafen Zürich AG’s revenue with Lufthansa Group in the reportable segments amounted to CHF 117.2 million in the past financial year (2020: CHF 145.7 million).

    • 2 Revenue

      (CHF million)

       

      2021

       

      2020

      Passenger charges

       

      77.9

       

      68.7

      Security charges

       

      53.5

       

      47.2

      PRM charges

       

      4.6

       

      4.1

      Passenger-related flight operations charges

       

      136.0

       

      120.0

      Landing charges

       

      35.2

       

      32.7

      Aircraft-related noise charges

       

      6.5

       

      5.5

      Emission charges

       

      1.8

       

      1.6

      Parking charges

       

      18.9

       

      24.4

      Freight revenue

       

      6.8

       

      6.3

      Other flight operations charges

       

      69.2

       

      70.5

      Total flight operations charges

       

      205.2

       

      190.5

      Baggage sorting and handling system

       

      18.9

       

      14.7

      De-icing

       

      5.1

       

      5.0

      Check-in

       

      2.3

       

      2.3

      Aircraft energy supply system

       

      2.8

       

      2.1

      Other fees

       

      3.2

       

      4.2

      Total aviation fees

       

      32.3

       

      28.3

      Refund of security costs

       

      0.8

       

      0.4

      Other revenue

       

      2.3

       

      2.5

      Total other aviation revenue

       

      3.1

       

      3.0

      Total aviation revenue

       

      240.6

       

      221.7

      Retail, tax & duty-free

       

      107.4

       

      89.7

      Food & beverage operations

       

      13.3

       

      14.6

      Advertising media and promotion

       

      16.2

       

      13.1

      Revenue from multi-storey car parks

       

      51.4

       

      40.8

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

       

      10.9

       

      11.6

      Total commercial revenue

       

      199.2

       

      169.8

      Revenue from rental and leasing agreements

       

      123.6

       

      113.5

      Energy and utility cost allocation

       

      23.5

       

      20.5

      Cleaning

       

      2.3

       

      2.3

      Revenue from services

       

      3.6

       

      4.5

      Total revenue from facility management

       

      153.0

       

      140.9

      Communication services

       

      14.1

       

      14.5

      Other services and miscellaneous

       

      13.5

       

      9.9

      Catering

       

      0.6

       

      0.5

      Fuel charges

       

      3.6

       

      3.2

      Total revenue from services 

       

      31.8

       

      28.2

      Revenue from consulting activities

       

      5.4

       

      4.8

      Other revenue from international business

       

      39.3

       

      31.2

      Revenue from construction projects as part of concession agreements

       

      10.7

       

      27.4

      Total revenue from international business

       

      55.4

       

      63.4

      Total non-aviation revenue

       

      439.4

       

      402.3

      Total revenue 

       

      680.0

       

      624.0

      Commercial partners have seen sales revenues fall significantly as a result of the coronavirus crisis, especially in retail, tax & duty free and food & beverage operations. The legal assessment is that the minimum annual rent agreed is not payable by lessees affected by the closures ordered by the authorities. Accordingly, the Zurich Airport Group adopted the same procedure as in the previous year and did not recognise the minimum rental income amounting to CHF 4.7 million for the period of the closures ordered by the authorities in financial year 2021 (2020: CHF 18.9 million).

      In addition, further rent concessions for the period after the closures ordered by the authorities were discussed with the commercial partners concerned in the reporting period and solutions agreed. The rent concessions (rent waivers and contractual amendments such as staggered rents or lease term extensions) of CHF 40.9 million granted in this context for financial year 2021 (2020: CHF 32.6 million) were recognised as assets in accordance with IFRS 16 and will be amortised on a straight-line basis over the term of the relevant contracts. For the financial year, the amortisation amounted to a total of CHF 11.6 million (2020: CHF 6.3 million).

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

      (CHF million)

       

      2021

       

      2020

      Flight operations charges

       

      205.2

       

      190.5

      Aviation charges

       

      32.3

       

      28.3

      Other aviation revenue

       

      2.9

       

      2.7

      Total aviation revenue from contracts with customers (IFRS 15)

       

      240.4

       

      221.5

      Aviation revenue (non IFRS 15)

       

      0.2

       

      0.2

      Total aviation revenue

       

      240.6

       

      221.7

      Commercial and parking revenue

       

      49.5

       

      38.8

      Revenue from facility management

       

      28.7

       

      27.0

      Revenue from services 

       

      30.8

       

      27.2

      Revenue from international business

       

      55.4

       

      63.4

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

       

      164.4

       

      156.4

      Non-aviation revenue (non IFRS 15)

       

      275.0

       

      245.9

      Total non-aviation revenue

       

      439.4

       

      402.3

      Total revenue 

       

      680.0

       

      624.0

    • 3 Personnel expenses

      (CHF million)

       

      2021

       

      2020

      Wages and salaries

       

      125.2

       

      125.0

      Pension costs for defined benefit plans 1)

       

      23.6

       

      27.4

      Social security contributions

       

      14.1

       

      14.8

      Other personnel expenses and employee benefits

       

      8.4

       

      12.1

      Total personnel expenses

       

      171.3

       

      179.3

      Average number of employees (full-time positions) 2)

       

      1,708

       

      1,785

      Number of employees as at reporting date (full-time positions) 2)

       

      1,694

       

      1,722

      Personnel expense per full-time position as at 31 December (in CHF)

       

      101,092

       

      104,133

      1) See note 22, Employee benefits.

      In the past financial year, short-time working compensation of CHF 29.5 million (2020: CHF 34.0 million) was offset against personnel expenses (wages and salaries).

      Staff participation programme

      The Zurich Airport Group gives those employees of Flughafen Zürich AG who have completed their first year of service one share free of charge as a one-off payment in kind. In financial year 2021, 82 shares (2020: 147 shares) worth CHF 13,024 (2020: CHF 19,232) were handed out.

      Variable remuneration for members of the Management Board and other members of management

      The total annual remuneration awarded to members of the Management Board and other members of management comprises a fixed salary and a variable remuneration component, which is based on the consolidated result. EBIT according to the budget (excluding the influence of aircraft noise) has been adopted as the target. The decision relating to the degree of achievement of the relevant target is taken in the following financial year (grant date). Two thirds of the variable remuneration is paid out in cash and one third in shares.

       

       

      2021

       

      2020

       

      2020 1)

       

      Price per share 1)

      (Recipient)

       

      (CHF)

       

      (CHF)

       

      (Number of shares)

       

      (CHF)

      Members of the Management Board

       

      360,698

       

      240,335

       

      1,539

       

      155.80

      Other members of management

       

      598,365

       

      479,354

       

      3,001

       

      155.80

      Adjustment of variable remuneration accrued in the previous year 2)

       

      –12,357

       

      –20,131

       

       

       

       

      Total

       

      946,706

       

      699,558

       

      4,540

       

       

      1) Shares distributed in the 2021 financial year under the variable remuneration programme for the Management Board and other members of management (number and price per share) for the 2020 financial year.

      2) In the subsequent period, the accrued variable remuneration is adjusted through personnel expenses on the basis of the actual degree of achievement of the relevant profit figure.

      The equity-settled portion of the bonus for financial year 2021 is calculated and accounted for on the basis of the data available as at the reporting date regarding the degree of achievement of the consolidated result. The number of shares to be granted cannot yet be established precisely at the reporting date, as that number is determined based on the quoted price as at the payment date (mid-April 2022). If the shares had been granted as at year-end, a total of 5,844 shares would have been distributed.

      Remuneration of the Board of Directors

      The remuneration awarded to the Board of Directors comprises an annual lump sum plus payments for attending meetings.

      Option programme

      No option programme exists at the Zurich Airport Group.

    • 4 Other operating expenses

      (CHF million)

       

      2021

       

      2020

      Zurich Protection & Rescue Services

       

      22.0

       

      20.4

      PRM costs (service costs of service providers)

       

      7.1

       

      6.4

      Other operating costs

       

      3.8

       

      4.4

      Insurance

       

      4.5

       

      4.0

      Cleaning by external contractors, incl. snow clearing

       

      3.7

       

      2.5

      Costs for own car park

       

      1.9

       

      1.4

      Communication costs

       

      1.4

       

      1.6

      Passenger services

       

      0.7

       

      1.2

      Total other operating expenses

       

      45.2

       

      42.0

    • 5 Other income and expenses

      (CHF million)

       

      2021

       

      2020

      Capitalised expenditure

       

      10.8

       

      14.2

      Other income

       

      7.0

       

      1.8

      Capitalised expenditure and other income

       

      17.8

       

      16.0

       

       

       

       

       

      Expenses for construction projects as part of concession agreements

       

      –10.6

       

      –27.1

      Other expenses

       

      –2.7

       

      –16.8

      Expenses for construction projects and other expenses

       

      –13.3

       

      –43.8

      Capitalised expenditure of CHF 10.8 million (2020: CHF 14.2 million) consists primarily of fees for the company’s architects and engineers as well as for project managers representing the client.

      In the reporting period, other income comprised compensation payments of CHF 5.0 million for projects written down in the previous year and income of CHF 1.1 million from the reversal of provisions no longer required.

      The expenses of CHF –10.6 million (2020: CHF –27.1 million) for construction projects as part of concession agreements are the result of investments in airport infrastructure in Brazil and Chile. The corresponding counter-item can be found under note 2, Revenue.

      The items recognised in other expenses in the reporting period primarily included losses on asset disposals and losses on receivables. In the previous year, this item also included project costs amortised in the amount of CHF 10.1 million.

    • 6 Finance result

      (CHF million)

       

      2021

       

      2020

      Interest expenses on debentures and non-current loans

       

      –10.8

       

      –9.7

      Net interest expenses on defined benefit obligations

       

      –0.3

       

      –0.3

      Interest expenses on finance lease liabilities

       

      –0.0

       

      –0.0

      Other interest expenses

       

      –12.9

       

      –8.2

      Present value adjustment on liabilities from concession agreements

       

      –4.9

       

      –2.7

      Foreign exchange losses

       

      –1.1

       

      –0.0

      Other finance costs

       

      –2.0

       

      –6.7

      Total finance costs

       

      –32.1

       

      –27.7

       

       

       

       

       

      Interest income on financial assets of Airport Zurich Noise Fund

       

      0.5

       

      0.4

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

       

      2.0

       

      1.8

      Other interest income

       

      0.4

       

      0.5

      Other finance income

       

      0.1

       

      0.1

      Total finance income

       

      3.0

       

      2.9

       

       

       

       

       

      Finance result

       

      –29.1

       

      –24.8

      Despite average interest rates being lower, interest expenses on debentures and non-current loans increased slightly year on year due to the higher level of debt.

      Other interest expenses increased compared with the previous year after some interest payments were discontinued at the Brazilian subsidiaries in 2020 and added to the loan amount.

      The expense for the present value adjustment on liabilities from concession agreements increased year on year due to high inflation in Brazil.

      In the previous year, other finance costs included an impairment loss of CHF 3.8 million on a financial interest in Curaçao airport held through the subsidiary A-Port S.A.

    • 7 Income tax

      (CHF million)

       

      2021

       

      2020

      Taxes for current year

       

      –0.7

       

      –0.8

      Taxes for prior years

       

      –2.1

       

      0.1

      Total current income tax

       

      –2.8

       

      –0.6

      Deferred income tax on changes in temporary differences

       

      2.2

       

      16.0

      Change in tax rate

       

      4.2

       

      0.0

      Total deferred income tax

       

      6.4

       

      16.0

      Total income tax

       

      3.6

       

      15.4

      Income tax can be analysed as follows:

      (CHF million)

       

      2021

       

      2020

      Result before tax

       

      –13.7

       

      –84.5

       

       

       

       

       

      Income tax based on the statutory tax rate of 19.0% applicable at the parent company (2020: 20.4%)

       

      2.6

       

      17.2

      Effect of application of different income tax rates in foreign countries

       

      1.0

       

      1.5

      Prior-period adjustments

       

      –2.1

       

      0.1

      Effect of tax rate changes on deferred taxes

       

      4.2

       

      0.0

      Effect of share of results of associates

       

      0.0

       

      –0.1

      Non-deductible expenses

       

      0.0

       

      –1.0

      Current-year losses for which no deferred tax assets were recognised

       

      –2.0

       

      –1.9

      Foreign exchange differences

       

      –0.1

       

      –0.5

      Miscellaneous items

       

      0.0

       

      0.1

      Total income tax

       

      3.6

       

      15.4

    • 8 Property, plant and equipment

      (CHF million)

       

      Land

       

      Engineering structures

       

      Buildings

       

      Movables

       

      Projects in progress

       

      Total

      Cost

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      129.0

       

      1,673.3

       

      4,607.7

       

      277.4

       

      305.2

       

      6,992.6

      Additions

       

      9.1

       

      0.0

       

      0.8

       

      0.0

       

      234.4

       

      244.3

      Disposals

       

      0.0

       

      –2.0

       

      –27.7

       

      –13.2

       

      –10.1

       

      –53.0

      Transfers

       

      0.0

       

      12.8

       

      100.6

       

      16.3

       

      –139.2

       

      –9.5

      Reclassifications

       

      0.0

       

      0.0

       

      21.8

       

      0.0

       

      0.0

       

      21.8

      Foreign exchange differences

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

      Balance as at 31 December 2020

       

      138.1

       

      1,684.1

       

      4,703.2

       

      280.5

       

      390.3

       

      7,196.2

       

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      138.1

       

      1,684.1

       

      4,703.2

       

      280.5

       

      390.3

       

      7,196.2

      Additions

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      141.6

       

      141.6

      Disposals

       

      0.0

       

      –3.2

       

      –124.1

       

      –15.3

       

      0.0

       

      –142.6

      Transfers

       

      0.0

       

      23.2

       

      220.2

       

      15.0

       

      –268.0

       

      –9.6

      Reclassifications

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      4.6

       

      4.6

      Foreign exchange differences

       

      0.0

       

      0.0

       

      –0.1

       

      –0.2

       

      0.0

       

      –0.3

      Balance as at 31 December 2021

       

      138.1

       

      1,704.1

       

      4,799.2

       

      280.0

       

      268.5

       

      7,189.9

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Depreciation, amortisation

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      0.0

       

      –921.4

       

      –3,022.6

       

      –193.9

       

      0.0

       

      –4,137.9

      Additions

       

      0.0

       

      –58.9

       

      –147.7

       

      –16.7

       

      0.0

       

      –223.3

      Disposals

       

      0.0

       

      1.9

       

      26.2

       

      12.8

       

      0.0

       

      40.9

      Reclassifications

       

      0.0

       

      0.0

       

      –21.7

       

      0.0

       

      0.0

       

      –21.7

      Balance as at 31 December 2020

       

      0.0

       

      –978.4

       

      –3,165.8

       

      –197.8

       

      0.0

       

      –4,342.0

       

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      0.0

       

      –978.4

       

      –3,165.8

       

      –197.8

       

      0.0

       

      –4,342.0

      Additions

       

      0.0

       

      –60.1

       

      –155.1

       

      –17.3

       

      0.0

       

      –232.5

      Disposals

       

      0.0

       

      3.2

       

      123.6

       

      15.3

       

      0.0

       

      142.1

      Foreign exchange differences

       

      0.0

       

      0.0

       

      0.0

       

      0.1

       

      0.0

       

      0.1

      Balance as at 31 December 2021

       

      0.0

       

      –1,035.3

       

      –3,197.3

       

      –199.7

       

      0.0

       

      –4,432.3

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Government subsidies and grants

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      0.0

       

      –9.3

       

      –1.7

       

      –0.2

       

      0.0

       

      –11.2

      Additions

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      –2.2

       

      –2.2

      Disposals

       

      0.0

       

      0.8

       

      0.2

       

      0.2

       

      0.0

       

      1.2

      Transfers

       

      0.0

       

      0.0

       

      –1.9

       

      0.0

       

      1.9

       

      0.0

      Balance as at 31 December 2020

       

      0.0

       

      –8.5

       

      –3.4

       

      0.0

       

      –0.3

       

      –12.2

       

       

       

       

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      0.0

       

      –8.5

       

      –3.4

       

      0.0

       

      –0.3

       

      –12.2

      Additions

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      –0.7

       

      –0.7

      Disposals

       

      0.0

       

      0.8

       

      0.3

       

      0.0

       

      0.0

       

      1.1

      Transfers

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

       

      0.0

      Balance as at 31 December 2021

       

      0.0

       

      –7.7

       

      –3.1

       

      0.0

       

      –1.0

       

      –11.8

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Net carrying amount as at 31 December 2020

       

      138.1

       

      697.2

       

      1,534.0

       

      82.7

       

      390.0

       

      2,842.0

      Net carrying amount as at 31 December 2021

       

      138.1

       

      661.1

       

      1,598.8

       

      80.3

       

      267.5

       

      2,745.8

      PROJECTS IN PROGRESS

      In the past financial year, Flughafen Zürich AG invested a total of CHF 141.6 million in projects in progress (2020: CHF 234.4 million). The largest investments at Zurich Airport are attributable to the following projects:

      • Expansion and refurbishment of the baggage sorting system (CHF 54.3 million)
      • Renovation of runway 28/10 (CHF 12.7 million)
      • Expansion of the landside passenger zones (CHF 9.3 million)

      Also in the reporting period, CHF 21.7 million was invested in development and planning relating to the construction and operation of Noida International Airport in New Delhi, India.

      DEPRECIATION

      Depreciation of property, plant and equipment totalling CHF –232.5 million was offset against government grants and subsidies recognised in the income statement in the amount of CHF 1.1 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 Impairment of assets in accordance with IAS 36).

    • 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

    • 10 Investment property

      (CHF million)

       

      Land

       

      Project costs

       

      Buildings and engineering structures plus movables

       

      Total investment property

      Cost

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      1.0

       

      431.8

       

      0.7

       

      433.5

      Additions

       

      0.0

       

      138.9

       

      0.0

       

      138.9

      Transfer

       

      0.0

       

      –394.5

       

      394.5

       

      0.0

      Balance as at 31 December 2020

       

      1.0

       

      176.2

       

      395.2

       

      572.4

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      1.0

       

      176.2

       

      395.2

       

      572.4

      Additions

       

      0.0

       

      61.8

       

      0.0

       

      61.8

      Disposals

       

      0.0

       

      0.0

       

      –0.7

       

      –0.7

      Transfer

       

      0.0

       

      –237.4

       

      237.4

       

      0.0

      Balance as at 31 December 2021

       

      1.0

       

      0.6

       

      631.9

       

      633.5

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Depreciation, amortisation

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      0.0

       

      0.0

       

      –0.7

       

      –0.7

      Additions

       

      0.0

       

      0.0

       

      –4.8

       

      –4.8

      Balance as at 31 December 2020

       

      0.0

       

      0.0

       

      –5.5

       

      –5.5

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      0.0

       

      0.0

       

      –5.5

       

      –5.5

      Additions

       

      0.0

       

      0.0

       

      –22.8

       

      –22.8

      Disposals

       

      0.0

       

      0.0

       

      0.7

       

      0.7

      Balance as at 31 December 2021

       

      0.0

       

      0.0

       

      –27.6

       

      –27.6

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Net carrying amount as at 31 December 2020

       

      1.0

       

      176.2

       

      389.7

       

      566.9

      Net carrying amount as at 31 December 2021

       

      1.0

       

      0.6

       

      604.3

       

      605.9

      THE CIRCLE

      In 2015, Flughafen Zürich AG and Swiss Life AG notarised the purchase agreement for the share of land for the Circle and registered it for entry in the Land Register, thereby establishing the Circle co-ownership structure between the two parties provided for in the financing agreements, in which Flughafen Zürich AG has a 51% interest and Swiss Life AG a 49% interest.

      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 the Zurich Airport Group.

      The share of the property is classified as investment property in accordance with IAS 40. In this context, the Zurich Airport Group has decided to apply the cost model.

      The Circle was opened in November 2020 even though not all of the construction work had been completed. Following the largely completed handover of the space to the lessees, during the reporting period, the share of the project costs is regularly billed, allocated to the relevant categories of investment property and depreciated over their useful lives.

      The share of the fair value of the Circle was CHF 759.9 million at the reporting date (2020: CHF 707.9 million). The value was determined by an external expert using the discounted cash flow method (level 3) and taking into account the highest and best use. Under this method, the fair value is determined on the basis of the total expected future net income (before tax, interest payments, depreciation and amortisation) discounted to the present date. A risk-adjusted discount rate is set depending on the risks and rewards and in line with market rates.

    • 11 Intangible assets

      (CHF million)

       

      Investments in airport operator projects

       

      Intangible asset from right of formal expropriation

       

      Other intangible assets

       

      Total intangible assets

      Cost

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      353.8

       

      134.0

       

      94.1

       

      581.9

      Additions

       

      30.2

       

      0.0

       

      0.0

       

      30.2

      Disposals

       

      0.0

       

      0.0

       

      –22.3

       

      –22.3

      Transfer

       

      0.0

       

      0.0

       

      9.6

       

      9.6

      Reclassification

       

      4.3

       

      0.0

       

      –4.3

       

      0.0

      Foreign exchange differences

       

      –88.8

       

      0.0

       

      0.0

       

      –88.8

      Balance as at 31 December 2020

       

      299.6

       

      134.0

       

      77.1

       

      510.6

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      299.6

       

      134.0

       

      77.1

       

      510.6

      Additions

       

      16.2

       

      0.0

       

      0.1

       

      16.3

      Disposals

       

      –0.9

       

      0.0

       

      –3.8

       

      –4.7

      Transfer

       

      0.0

       

      0.0

       

      9.6

       

      9.6

      Reclassification

       

      –4.6

       

      0.0

       

      0.0

       

      –4.6

      Foreign exchange differences

       

      –22.1

       

      0.0

       

      0.0

       

      –22.1

      Balance as at 31 December 2021

       

      288.2

       

      134.0

       

      83.0

       

      505.1

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Depreciation, amortisation

       

       

       

       

       

       

       

       

      Balance as at 1 January 2020

       

      –10.5

       

      –63.2

       

      –75.6

       

      –149.2

      Additions

       

      –7.7

       

      –2.3

       

      –7.6

       

      –17.6

      Disposals

       

      0.0

       

      0.0

       

      21.9

       

      21.9

      Reclassification

       

      –1.6

       

      0.0

       

      1.6

       

      0.0

      Foreign exchange differences

       

      2.4

       

      0.0

       

      0.0

       

      2.4

      Balance as at 31 December 2020

       

      –17.4

       

      –65.4

       

      –59.7

       

      –142.6

       

       

       

       

       

       

       

       

       

      Balance as at 1 January 2021

       

      –17.4

       

      –65.4

       

      –59.7

       

      –142.6

      Additions

       

      –7.2

       

      –2.3

       

      –9.2

       

      –18.7

      Disposals

       

      0.2

       

      0.0

       

      3.8

       

      4.0

      Reclassification

       

      0.0

       

      0.0

       

      0.0

       

      0.0

      Foreign exchange differences

       

      4.9

       

      0.0

       

      0.0

       

      4.9

      Balance as at 31 December 2021

       

      –19.5

       

      –67.7

       

      –65.1

       

      –152.4

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      Net carrying amount as at 31 December 2020

       

      282.1

       

      68.6

       

      17.4

       

      368.1

      Net carrying amount as at 31 December 2021

       

      268.6

       

      66.3

       

      17.9

       

      352.8

      INVESTMENTS IN AIRPORT OPERATOR PROJECTS

      The investments in airport operator projects in the amount of CHF 268.6 million (2020: CHF 282.1 million) consist of concession rights which, due to the application of IFRIC 12, comprise minimum concession payments recognised as assets and investments made. They relate mainly to the expansion and operation of the Chilean airports in Antofagasta and Iquique (CHF 56.4 million; 2020: CHF 56.2 million), the expansion and operation of the Brazilian airport in Florianópolis (CHF 122.0 million; 2020: CHF 128.9 million) and the expansion and operation of the Brazilian airports in Vitória and Macaé (CHF 90.2 million; 2020: CHF 92.4 million).

      The obligations of CHF 24.7 million (2020: CHF 23.2 million) relating to the relevant concessions have been recognised as current and non-current liabilities (see note 18, Financial liabilities).

      INTANGIBLE ASSET FROM RIGHT OF FORMAL EXPROPRIATION

      With the award of the operating licence for Zurich Airport, Flughafen Zürich AG was also granted a right of formal expropriation in respect of property owners exposed to aircraft noise. This right of formal expropriation was granted on condition that the airport operator bears the costs associated with compensation payments and is recognised as an intangible asset at the date when the probable total cost can be estimated based on final-instance court rulings, so that the cost can be reliably estimated in accordance with IAS 38.21 (see Reporting of noise-related costs in the financial statements). This is amortised using the straight-line method over the remaining term of the operating licence (until May 2051).

      As at 31 December 2021, the Zurich Airport Group has recognised an intangible asset from the right of formal expropriation in the amount of CHF 66.3 million (2020: CHF 68.6 million).

      IMPAIRMENT

      Due to the coronavirus pandemic and the related indicators that investments in airport operator projects may be impaired, Flughafen Zürich AG performed an impairment test (see Impairment of assets in accordance with IAS 36).

    • 12 Investments in associates

      (CHF million)

       

      31.12.2021

       

      31.12.2020

      Sociedade de Participação no Aeroporto de Confins S.A., Belo Horizonte (Brazil)

       

       

       

       

      Share capital: BRL 474 million (previous year BRL 474 million)/Equity share 25.0% (previous year 25.0%)

       

      0.0

       

      3.7

      Administradora Unique IDC C.A., Porlamar (Venezuela)

       

       

       

       

      Share capital: VEB 25 million (previous year VEB 25 million)/Equity share 49.5% (previous year 49.5 %)

       

      0.0

       

      0.0

      Aeropuertos Asociados de Venezuela C.A., Porlamar (Venezuela)

       

       

       

       

      Share capital: VEB 10 million (previous year VEB 10 million)/Equity share 49.5% (previous year 49.5 %)

       

      0.0

       

      0.0

      Total investments in associates

       

      0.0

       

      3.7

      BRAZIL

      Alongside Brazilian company CCR, the Zurich Airport Group holds a 25% interest in Sociedade de Participação no Aeroporto de Confins S.A., Belo Horizonte, a private consortium which in turn controls 51% of the airport operator Concessionária no Aeroporto Internacional de Confins S.A. The remaining 49% of the shares are held by the state-owned Infraero. The Zurich Airport Group and CCR have therefore been responsible for the expansion of the international airport in Belo Horizonte in the Brazilian state of Minas Gerais since 2014 and for its operation since 2016. The concession agreement is for 30 years and prescribes certain infrastructure expansion. The Zurich Airport Group appoints the flight operations manager. Until the first quarter of financial year 2021, there was also an Operations, Management and Service Agreement (OMSA) with the licence holder, from which the company received revenue.

      VENEZUELA

      In 2010, the Zurich Airport Group and its consortium partner Unique IDC turned to the International Centre for Settlement of Investment Disputes (ICSID) in Washington D.C. in the matter of the airport expropriated in Venezuela (Isla de Margarita). This step is in compliance with the investment protection treaty between Venezuela, Switzerland and Chile. The ICSID reached its decision in November 2014, requiring the Bolivarian Republic of Venezuela to reimburse the consortium the costs incurred for the proceedings and project plus a compensation payment of around USD 19.5 million as well as interest incurred up until receipt of payment. The Zurich Airport Group is entitled to 50% of this. After an application for annulment was rejected, the tribunal’s decision is definitive and final. The value of this holding has been fully impaired.

      ADDITIONAL DISCLOSURES

      The following table contains the summarised financial information for the associate Sociedade de Participação no Aeroporto de Confins S.A. The amounts correspond to those in the associate’s financial statements prepared in accordance with IFRSs.

      SOCIEDADE DE PARTICIPAÇÃO NO AEROPORTO DE CONFINS S.A.

      (CHF million)

       

      31.12.2021

       

      31.12.2020

      Revenue

       

      50.2

       

      56.0

      Loss

       

      –33.1

       

      –24.3

      Comprehensive income

       

      –33.1

       

      –24.3

       

       

       

       

       

      Non-current assets

       

      360.5

       

      369.4

      Current assets

       

      31.4

       

      27.0

      Non-current liabilities

       

      –359.3

       

      –343.7

      Current liabilities

       

      –36.7

       

      –23.5

      Equity attributable to non-controlling interests

       

      2.0

       

      –14.3

       

       

       

       

       

      Net equity

       

      –2.1

       

      14.9

      Equity share

       

      25.0% 

       

      25.0% 

       

       

       

       

       

      Carrying amount of interest in associate

       

      0.0

       

      3.7

    • 13 Financial assets of the Airport Zurich Noise Fund

      (CHF million)

       

      31.12.2021

       

      31.12.2020

      Current financial assets of Airport Zurich Noise Fund

       

      45.3

       

      48.4

      Non-current financial assets of Airport Zurich Noise Fund

       

      327.7

       

      370.6

      Total financial assets of Airport Zurich Noise Fund

       

      373.0

       

      419.1

      The financial assets of the Airport Zurich Noise Fund consist mostly of CHF-denominated bonds and a mixed investment fund. The investment horizon is based on the expected obligation to make payments from the Airport Zurich Noise Fund and averages around four years. In 2021, interest on bonds was between 0.00% and 0.875% (2020: 0.00% and 2.625%). The funds are invested by professional financial institutions (see note 6, Finance result, and note 24.1 a) Financial risk management, i) Credit risk).

    • 14 Trade receivables

      (CHF million)

       

      31.12.2021

       

      31.12.2020