NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
I ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
The unaudited interim consolidated financial statements for the six months ended 30 June 2021 were prepared in accordance with International Accounting Standard 34 (IAS 34) Interim Financial Reporting. They do not contain all the information included in the consolidated financial statements for the year ended 31 December 2020 and should therefore be read in conjunction with the latter.
Changes in accounting policies
The company adopted the following relevant amendments to International Financial Reporting Standards which are mandatory for the first time for financial year 2021 beginning on 1 January:
- 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 these interim consolidated financial statements. In all other respects, these interim consolidated financial statements were prepared in accordance with the accounting policies described in the consolidated financial statements for the year ended 31 December 2020.
Seasonal factors
Due to the nature of the civil aviation sector and based on statistics, traffic volumes (passenger volumes and number of flights) are usually higher in the second half of the year than in the first half. As there is still uncertainty over the further course of the coronavirus crisis, it remains difficult to issue a reliable forecast for the second half of the year. The trend in passenger numbers depends to a significant extent on the pace of the recovery in international tourist traffic.
II NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1 Segment reporting
(CHF million)
Regulated business
Noise
Non-regulated business
Eliminations
Consolidated
First half 2021
Revenue from contracts with customers (IFRS 15)
65.4
0.0
66.8
0.0
132.2
Other revenue (non IFRS 15)
0.1
0.0
131.3
0.0
131.4
Revenue from third parties
65.5
0.0
198.1
0.0
263.6
Inter-segment revenue
10.1
0.0
38.3
–48.4
0.0
Total revenue
75.6
0.0
236.4
–48.4
263.6
Personnel expenses
–27.7
–0.8
–51.6
0.0
–80.1
Other operating expenses
–55.1
–0.5
–35.7
0.0
–91.3
Inter-segment operating expenses
–38.2
–0.4
–9.8
48.4
0.0
Segment result (EBITDA)
–45.4
–1.7
139.3
0.0
92.2
Depreciation and amortisation
–69.7
–1.8
–63.3
0.0
–134.8
Segment result (EBIT)
–115.1
–3.5
76.0
0.0
–42.6
Finance result
–11.5
Share of result of associates
–2.1
Income tax expense
11.1
Consolidated result
–45.1
Invested capital as at 30 June 2021
1,844.1
107.0
2,274.1
4,225.2
Non-interest-bearing non-current liabilities 1)
499.5
Non-interest-bearing current liabilities 2)
215.7
Total assets as at 30 June 2021
4,940.4
ROIC (in %) 3)
–9.0
–3.8
4.9
–1.5
(CHF million)
Aviation
PRM
User fees
Air security 4)
Access fees 4)
Eliminations
Total regulated business
First half 2021
Revenue from contracts with customers (IFRS 15)
43.1
1.0
9.6
11.4
0.3
0.0
65.4
Other revenue (non IFRS 15)
0.1
0.0
0.0
0.0
0.0
0.0
0.1
Revenue from third parties
43.2
1.0
9.6
11.4
0.3
0.0
65.5
Inter-segment revenue
9.2
0.0
2.5
4.2
1.2
–7.0
10.1
Total revenue
52.4
1.0
12.1
15.6
1.5
–7.0
75.6
Personnel expenses
–23.6
0.0
–2.8
–1.0
–0.3
0.0
–27.7
Other operating expenses
–16.4
–2.6
–1.6
–13.8
–20.7
0.0
–55.1
Inter-segment operating expenses
–28.5
–0.3
–6.2
–4.6
–5.6
7.0
–38.2
EBITDA
–16.1
–1.9
1.5
–3.8
–25.1
0.0
–45.4
Depreciation and amortisation
–51.5
–0.1
–13.1
–3.4
–1.6
0.0
–69.7
EBIT
–67.6
–2.0
–11.6
–7.2
–26.7
0.0
–115.1
Invested capital as at 30 June 2021
1,320.6
6.5
389.2
107.1
20.7
1,844.1
ROIC (in %) 3)
–7.0
-40.4
–4.6
–8.4
–181.2
–9.0
1) Non-interest-bearing non-current liabilities include non-current provisions for formal expropriations plus sound insulation and resident protection, deferred tax liabilities, employee benefit obligations.
2) Non-interest-bearing current liabilities include current provisions for formal expropriations and sound insulation and resident protection, current tax liabilities, trade payables and other current liabilities plus accruals and deferrals.
3) Based on the result of the 12-month period preceding the reporting date.
4) In accordance with the Swiss Ordinance on Airport Charges, the shortfall in the “Access fees” segment can be charged to the “Air security” segment. Taking the shortfall into account, the ROIC of the “Air security” segment amounts to -37.2%.
The reportable segments for the prior-year period are as follows:
(CHF million)
Regulated business
Noise
Non-regulated business
Eliminations
Consolidated
First half 2020
Revenue from contracts with customers (IFRS 15)
126.8
3.5
72.6
0.0
202.9
Other revenue (non IFRS 15)
0.1
0.0
107.4
0.0
107.5
Revenue from third parties
126.9
3.5
180.0
0.0
310.4
Inter-segment revenue
10.1
0.0
36.3
–46.4
0.0
Total revenue
137.0
3.5
216.3
–46.4
310.4
Personnel expenses
–33.8
–0.8
–59.4
0.0
–94.0
Other operating expenses
–73.0
–0.7
–37.8
0.0
–111.5
Inter-segment operating expenses
–36.4
–0.4
–9.6
46.4
0.0
Segment result (EBITDA)
–6.2
1.6
109.5
0.0
104.9
Depreciation and amortisation
–68.7
–1.8
–52.8
0.0
–123.3
Segment result (EBIT)
–74.9
–0.2
56.7
0.0
–18.4
Finance result
–12.8
Share of result of associates
–1.6
Income tax expense
5.3
Consolidated result
–27.5
Invested capital as at 30 June 2020
2,004.7
109.9
2,267.6
4,382.2
Non-interest-bearing non-current liabilities 1)
616.3
Non-interest-bearing current liabilities 2)
225.7
Total assets as at 30 June 2020
5,224.2
ROIC (in %) 3)
1.0
2.4
7.0
4.0
(CHF million)
Aviation
PRM
User fees
Air security 4)
Access fees 4)
Eliminations
Total regulated business
First half 2020
Revenue from contracts with customers (IFRS 15)
78.5
2.6
16.0
29.4
0.3
0.0
126.8
Other revenue (non IFRS 15)
0.1
0.0
0.0
0.0
0.0
0.0
0.1
Revenue from third parties
78.6
2.6
16.0
29.4
0.3
0.0
126.9
Inter-segment revenue
9.7
0.0
2.3
7.5
1.1
–10.5
10.1
Total revenue
88.3
2.6
18.3
36.9
1.4
–10.5
137.0
Personnel expenses
–28.7
0.0
–3.8
–1.0
–0.3
0.0
–33.8
Other operating expenses
–18.9
–3.4
–2.2
–25.6
–22.9
0.0
–73.0
Inter-segment operating expenses
–27.8
–0.4
–7.1
–4.5
–7.1
10.5
–36.4
EBITDA
12.9
–1.2
5.2
5.8
–28.9
0.0
–6.2
Depreciation and amortisation
–51.2
–0.1
–12.4
–3.5
–1.5
0.0
–68.7
EBIT
–38.3
–1.3
–7.2
2.3
–30.4
0.0
–74.9
Invested capital as at 30 June 2020
1,455.2
9.3
372.8
138.9
28.4
2,004.7
ROIC (in %) 3)
1.9
1.6
–0.1
36.8
–153.0
1.0
1) Non-interest-bearing non-current liabilities include non-current provisions for formal expropriations plus sound insulation and resident protection, deferred tax liabilities, employee benefit obligations and non-current liabilities from concession arrangements.
2) Non-interest-bearing current liabilities include current provisions for formal expropriations and sound insulation and resident protection, current tax liabilities, trade payables and other current liabilities plus accruals and deferrals.
3) Based on the result of the 12-month period preceding the reporting date.
4) In accordance with the Swiss Ordinance on Airport Charges, the shortfall in the “Access fees” segment can be charged to the “Air security” segment. Taking the shortfall into account, the ROIC of the “Air security” segment amounts to -4.7%.
2 Revenue
(CHF 1,000)
First half 2021
First half 2020
Passenger charges
16,750
41,953
Security charges
11,433
28,952
PRM charges
968
2,575
Passenger-related flight operations charges
29,151
73,480
Landing charges
10,630
18,840
Aircraft-related noise charges
1,994
3,515
Emission charges
587
921
Parking charges
8,671
12,312
Freight revenue
3,258
3,338
Other flight operations charges
25,140
38,926
Total flight operations charges
54,291
112,406
Baggage sorting and handling system
4,651
8,575
De-icing
2,235
3,158
Check-in
844
1,388
Aircraft energy supply system
810
1,030
Other fees
1,475
2,211
Total aviation fees
10,015
16,362
Refund of security costs
0
439
Other revenue
1,203
1,222
Total other aviation revenue
1,203
1,661
Total aviation revenue
65,509
130,429
Retail, tax & duty-free
52,360
33,931
Food & beverage operations
5,262
5,528
Advertising media and promotion
6,109
6,117
Revenue from multi-storey car parks
17,207
21,392
Other commercial revenue (car rentals, taxis, banks, etc.)
4,258
5,539
Total commercial and parking revenue
85,196
72,507
Revenue from rental and leasing agreements
60,909
54,834
Energy and utility cost allocation
10,875
10,824
Cleaning
1,079
1,156
Revenue from services
1,765
2,316
Total revenue from facility management
74,628
69,130
Communication services
7,160
7,399
Other services and miscellaneous
4,790
5,019
Catering
132
393
Fuel charges
1,233
1,969
Total revenue from services
13,315
14,780
Revenue from consulting activities
4,024
2,799
Other revenue from international business
15,954
17,427
Revenue from construction projects as part of concession arrangements
4,951
3,328
Total revenue from international business
24,929
23,554
Total non-aviation revenue
198,068
179,971
Total revenue
263,577
310,400
Commercial partners in retail, tax & duty free and food & beverage operations have seen sales revenues fall significantly as a result of the coronavirus crisis. The legal assessment is that the minimum annual rent agreed is not payable by lessees affected by the closures ordered by the authorities. Accordingly, Flughafen Zürich AG did not recognise the minimum rental income for the period of the closures ordered by the authorities in the first half of 2021, just as it did not recognise the minimum rental income for the period of the prior-year lockdown.
In addition, further rent concessions for the post-lockdown period were discussed with the commercial partners concerned and solutions agreed. The rent concessions granted in this context (rent waivers and contractual amendments such as staggered rents or lease term extensions) were recognised as assets in accordance with IFRS 16 (CHF 16.3 million for the first half of 2021) and will be amortised on a straight-line basis over the term of the relevant contracts. For the first six months of the current financial year, this amortisation amounted to a total of CHF 5.2 million.
Presentation of revenue from contracts with customers (IFRS 15):
(CHF 1,000)
First half 2021
First half 2020
Flight operations charges
54,291
112,406
Aviation charges
10,015
16,362
Other aviation revenue
1,105
1,556
Total aviation revenue from contracts with customers (IFRS 15)
65,411
130,324
Aviation revenue (non IFRS 15)
98
105
Total aviation revenue
65,509
130,429
Commercial and parking revenue
15,578
20,629
Revenue from facility management
13,595
14,072
Revenue from services
12,689
14,296
Revenue from international activities
24,929
23,554
Total non-aviation revenue from contracts with customers (IFRS 15)
66,791
72,551
Non-aviation revenue (non IFRS 15)
131,277
107,420
Total non-aviation revenue
198,068
179,971
Total revenue
263,577
310,400
3 Other income and expenses
(CHF 1,000)
First half 2021
First half 2020
Capitalised expenditure
4,879
7,607
Other income
3,119
736
Capitalised expenditure and other income
7,998
8,343
Expenses for construction projects as part of concession arrangements
–4,885
–3,328
Other expenses
–353
–2,409
Expenses for construction projects and other expenses
–5,238
–5,737
The expenses of CHF –4.9 million (prior-year period: CHF –3.3 million) for construction projects as part of concession arrangements are the result of investments in airport infrastructure in Chile and India in particular. The corresponding counter-item can be found under note 2, Revenue.
4 finance result
(CHF 1,000)
First half 2021
First half 2020
Net interest expenses on debentures and non-current loans
–5,354
–5,082
Net interest expenses on defined benefit obligations
–137
–175
Interest expenses on finance lease liabilities
0
–12
Other interest expenses
–5,485
–4,110
Adjustments to fair value on financial assets of Airport of Zurich Noise Fund
0
–1,399
Present value adjustment on liabilities from concession arrangements
–2,131
–959
Foreign exchange losses
–127
–699
Other finance costs
–922
–1,115
Total finance costs
–14,156
–13,551
Interest income on financial assets of Airport of Zurich Noise Fund
225
200
Adjustments to fair value on financial assets of Airport of Zurich Noise Fund
2,259
0
Other interest income
129
397
Other finance income
54
78
Total finance income
2,667
675
Finance result
–11,489
–12,876
Other interest expenses rose to CHF –5.5 million for the first half of 2021 due in particular to an increase in the foreign concessionsʼ liabilities to banks.
Positive changes in value amounting to CHF 2.3 million were achieved on the financial assets of the Airport of Zurich Noise Fund (AZNF) held at fair value in the first half of 2021 (prior-year period: CHF –1.4 million).
5 Property, Plant and equipment
(CHF million)
Land
Engineering structures
Buildings
Projects in progress
Movables
Total property, plant and equipment
Cost
Balance as at 1 January 2021
138.1
1,684.1
4,703.2
390.3
280.5
7,196.2
Additions
0.0
0.0
0.0
71.7
0.0
71.7
Disposals
0.0
0.0
–2.5
0.0
–0.1
–2.6
Transfers and reclassifications
0.0
1.1
126.9
–129.9
2.9
1.0
Foreign exchange differences
0.0
0.0
0.0
0.3
0.0
0.3
Balance as at 30 June 2021
138.1
1,685.2
4,827.6
332.4
283.3
7,266.6
Depreciation, amortisation
Balance as at 1 January 2021
0.0
–978.4
–3,165.8
0.0
–197.8
–4,342.0
Additions
0.0
–29.0
–75.8
0.0
–8.2
–113.0
Disposals
0.0
0.0
2.3
0.0
0.1
2.4
Balance as at 30 June 2021
0.0
–1,007.4
–3,239.3
0.0
–205.9
–4,452.6
Government subsidies and grants
Balance as at 1 January 2021
0.0
–8.5
–3.4
–0.3
0.0
–12.2
Additions
0.0
0.0
0.0
–0.7
0.0
–0.7
Disposals
0.0
0.3
0.1
0.0
0.0
0.4
Balance as at 30 June 2021
0.0
–8.2
–3.3
–1.0
0.0
–12.5
Net carrying amount as at 1 January 2021
138.1
697.2
1,534.0
390.0
82.7
2,842.0
Net carrying amount as at 30 June 2021
138.1
669.6
1,585.0
331.4
77.4
2,801.5
Projects in progress
In the first half of 2021, Flughafen Zürich AG invested a total of CHF 71.7 million in projects in progress (prior-year period: CHF 128.5 million). The biggest items comprise the following projects:
- Refurbishment and expansion of the baggage sorting system (CHF 31.0 million)
-
Renovation of runway 28/10 (CHF 5.5 million)
- Expansion of the landside passenger zones (CHF 3.9 million)
Impairment
Due to the coronavirus crisis and the related indicators that items of property, plant and equipment may be impaired, Flughafen Zürich AG performed some impairment tests (see note 16.1, Impairment in accordance with IAS 36).
6 investment property
(CHF 1,000)
Land
Project and construction costs
Buildings and engineering structures plus movables
Total investment property
Cost
Balance as at 1 January 2021
950
176,232
395,248
572,430
Additions
0
46,326
0
46,326
Transfers
0
–170,177
170,177
0
Balance as at 30 June 2021
950
52,381
565,425
618,756
Accumulated depreciation and impairment losses
Balance as at 1 January 2021
0
0
–5,488
–5,488
Additions
0
0
–9,561
–9,561
Balance as at 30 June 2021
0
0
–15,049
–15,049
Net carrying amount as at 1 January 2021
950
176,232
389,760
566,942
Net carrying amount as at 30 June 2021
950
52,381
550,376
603,707
THE CIRCLE PROJECT
Based on the nature of the contractual arrangement, the co-ownership structure The Circle is classified as a joint operation in accordance with IFRS 11. The share of the rights to the assets and the share of the obligations for the liabilities of the co-ownership structure are therefore recognised and presented in the relevant line items in the consolidated financial statements of Flughafen Zürich AG (Flughafen Zürich AGʼs share: 51%).
The share of the fair value of the Circle was CHF 729.8 million at the reporting date (31 December 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.
7 INTANGIBLE ASSETS
(CHF 1,000)
Investments in airport operator projects
Intangible asset from right of formal expropriation
Other intangible assets
Cost
Balance as at 1 January 2021
299,559
134,029
77,056
Additions
6,989
0
0
Disposals
–237
0
–370
Transfers and reclassifications
–4,590
0
3,600
Foreign exchange differences
1,464
0
0
Balance as at 30 June 2021
303,185
134,029
80,286
Accumulated depreciation and impairment losses
Balance as at 1 January 2021
–17,423
–65,439
–59,690
Additions
–3,583
–1,127
–4,221
Disposals
182
0
370
Foreign exchange differences
–113
0
0
Balance as at 30 June 2021
–20,937
–66,566
–63,541
Net carrying amount as at 1 January 2021
282,136
68,590
17,366
Net carrying amount as at 30 June 2021
282,248
67,463
16,745
Investments in airport operator projects
The investments in airport operator projects in the amount of CHF 282.2 million (31 December 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 to the expansion and operation of the Chilean airports in Antofagasta and Iquique (CHF 60.6 million; 31 December 2020: CHF 56.2 million), the expansion and operation of the Brazilian airport in Florianópolis (CHF 128.7 million; 31 December 2020: CHF 128.9 million) and the expansion and operation of the Brazilian airports in Vitória and Macaé (CHF 92.9 million; 31 December 2020: CHF 92.4 million).
The obligations of CHF 24.9 million (31 December 2020: CHF 23.2 million) relating to the corresponding concessions have been recognised as current or non-current liabilities (see note 10, Financial liabilities).
IMPAIRMENT
Due to the coronavirus crisis and the related indicators that investments in airport operator projects may be impaired, Flughafen Zürich AG performed some impairment tests (see note 16.1, Impairment in accordance with IAS 36).
8 Trade receivables
(CHF 1,000)
30.06.2021
31.12.2020
Trade receivables, gross
68,154
73,059
Allowance for expected credit loss
–1,065
–1,280
Trade receivables, net
67,089
71,779
(CHF 1,000)
30.06.2021
Not past due
Past due, 0 to 30 days
Past due, 31 to 60 days
Past due, more than 60 days
Total
Expected credit loss rate (in %)
0.3
1.5
3.0
5.0
Trade receivables, gross
45,018
4,967
2,718
15,451
68,154
Expected credit loss
–137
–74
–82
–772
–1,065
(CHF 1,000)
31.12.2020
Not past due
Past due, 0 to 30 days
Past due, 31 to 60 days
Past due, more than 60 days
Total
Expected credit loss rate (in %)
0.3
1.5
3.0
5.0
Trade receivables, gross
48,804
2,395
1,541
20,319
73,059
Expected credit loss
–170
–37
–47
–1,026
–1,280
9 CASH AND CASH EQUIVALENTS AND FIXED-TERM DEPOSITS
30.06.2021
31.12.2020
(CHF 1,000)
Total
of which AZNF
Total
of which AZNF
Cash on hand
235
0
205
0
Cash at banks and in postal accounts
227,037
8,892
245,090
3,943
Fixed-term deposits 1)
108,276
0
105,919
0
Total cash and cash equivalents
335,548
8,892
351,214
3,943
Current fixed-term deposits 2)
126,431
0
200,000
0
Non-current fixed-term deposits 2)
2,253
0
821
0
Total fixed-term deposits
128,684
0
200,821
0
1) Due within 90 days from date of acquisition.
2) Due after 90 days from date of acquisition.
10 FINANCIAL LIABILITIES
(CHF 1,000)
30.06.2021
31.12.2020
Non-current debentures
1,648,701
1,648,536
Non-current liabilities to banks
115,445
109,887
Non-current lease liabilities
69,646
75,815
Non-current liabilities from concession agreements
23,621
21,664
Other non-current financial liabilities
20,400
20,400
Non-current financial liabilities
1,877,813
1,876,302
Current liabilities to banks
8,652
64,025
Current lease liabilities
9,895
7,463
Current liabilities from concession agreements
1,284
1,535
Other current financial liabilities
320
2,117
Current financial liabilities
20,151
75,140
Total financial liabilities
1,897,964
1,951,442
The decline in current liabilities to banks is due mainly to the repayment of the fixed advance of CHF 60.0 million under the operating credit facilities.
The maturities and terms of the debentures outstanding at the reporting date were as follows:
as at 30.06.2021
as at 30.06.2021
Debentures
Nominal value
Carrying amount
Duration
Interest rate
Early amortisation
Interest payment date
(CHF 1,000)
(CHF 1,000)
Debenture (2023)
400,000
399,911
2013 – 2023
1.500%
no
17.4.
Debenture (2024)
300,000
299,315
2020 – 2024
0.700%
no
22.5.
Debenture (2027)
200,000
199,560
2020 – 2027
0.100%
no
30.12.
Debenture (2029)
350,000
350,487
2017 – 2029
0.625%
no
24.5.
Debenture (2035)
400,000
399,428
2020 – 2035
0.200%
no
26.2.
Total debentures
1,648,701
As at the reporting date, Flughafen Zürich AG had the following unused credit facilities at its disposal:
(CHF 1,000)
Duration
30.06.2021
31.12.2020
Operating credit lines (committed credit lines)
31.12.2025
300,000
160,000
Total credit lines
300,000
160,000
Utilisation: fixed advance
0
–60,000
Utilisation: bank guarantees
–12,460
–12,110
Total unused credit lines
287,540
87,890
11 PROVISION FOR FORMAL EXPROPRIATIONS PLUS SOUND INSULATION AND RESIDENT PROTECTION
(CHF 1,000)
Formal expropriations
Sound insulation and resident protection
Total
Balance as at 1 January 2021
245,450
125,165
370,615
Provisions used 1)
–269
–3,412
–3,681
Present value adjustment
0
0
0
Balance as at 30 June 2021
245,181
121,753
366,934
of which current (planned payment within 1 year)
25,981
19,828
45,809
of which non-current (planned payment from 1 year on)
219,200
101,925
321,125
1) The amount paid for formal expropriations only includes effective payments of compensation, and excludes other associated external costs in accordance with the regulations of the Airport of Zurich Noise Fund.
Provision for formal expropriations
As at 30 June 2021, the estimated costs for formal expropriations remained unchanged at CHF 330.0 million, of which CHF 84.8 million had already been paid out at that date. As at the reporting date, a provision was recognised in the consolidated financial statements at present value for the outstanding costs of CHF 245.2 million (nominal amount). As the interest rate used to adjust the present value of the nominal payment flows remained unchanged at 0.0%, the present value is the nominal amount. It is expected that the payments can be completed by the end of 2030.
Provision for sound insulation and resident protection
As at 30 June 2021, the estimated costs for sound insulation and resident protection measures remained unchanged at CHF 400.0 million, of which CHF 278.2 million had already been paid out at that date. As at the reporting date, a provision was recognised in the consolidated financial statements at present value for the outstanding costs of CHF 121.8 million (nominal amount). As the interest rate used to adjust the present value of the nominal payment flows remained unchanged at 0.0%, the present value is the nominal amount. It is expected that the payments can be completed by the end of 2030.
12 AIRPORT of ZURICH NOISE FUND
(CHF 1,000)
2021
Airport of Zurich Noise Fund as at 1 January
409,848
Revenue from noise charges
793
Costs for sound insulation and resident protection
–3,412
Costs for formal expropriations 1)
–504
Airport of Zurich Noise Fund as at 30 June before operating costs and finance result
406,725
Noise-related operating costs
–1,447
Interest income and adjustments to fair value financial assets of Airport of Zurich Noise Fund
2,503
Airport of Zurich Noise Fund as at 30 June
407,781
1) In addition to compensation payments for formal expropriations, this amount includes other associated external costs (in accordance with the regulations of the Airport of Zurich Noise Fund).
Summary of assets invested in the Airport of Zurich Noise Fund:
(CHF 1,000)
30.06.2021
31.12.2020
Cash equivalents (see note 9, "Cash and cash equivalents")
8,892
3,943
Current financial assets of Airport of Zurich Noise Fund
86,406
48,449
Non-current financial assets of Airport of Zurich Noise Fund
314,842
370,644
Accrual/deferral towards Flughafen Zürich AG 1)
–2,359
–13,188
Total assets invested for Airport of Zurich Noise Fund
407,781
409,848
1) For accounting reasons, an asset or liability towards Flughafen Zürich AG arises as of the balance sheet date. This is compensated in the subsequent month, so the balance of liquid funds is restored.
13 DEFERRED TAX ASSETS AND LIABILITIES
In accordance with IAS 12.47, deferred tax assets and liabilities are calculated at the rate that is expected to apply when the asset is realised or the liability settled. Flughafen Zürich AG currently anticipates an applicable tax rate of 19.0% (31 December 2020: 20.4%).
The balance of deferred taxes changed as follows:
(CHF 1,000)
2021
Deferred tax assets and liabilities, net as at 1 January
–18,686
Change in tax rate, recognised in other comprehensive income
–683
Change in tax rate, recognised in income statement
4,167
Deferred taxes on remeasurement of defined benefit obligations, recognised in OCI
–8,034
Change according to income statement
7,848
Foreign exchange differences
–10
Deferred tax assets and liabilities, net as at 30 June
–15,398
of which deferred tax assets
4,192
of which deferred tax liabilities
–19,590
14 Employee benefit obligations
Employee benefit obligations broke down as follows at the reporting date:
(CHF 1,000)
30.06.2021
31.12.2020
Net defined benefit obligations
–145,258
–184,339
Other long-term employee benefits
–13,506
–13,250
Employee benefit obligations
–158,764
–197,589
Net defined benefit obligations changed as follows in the first half of 2021:
(CHF 1,000)
2021
Net defined benefit obligations as at 1 January
–184,339
Total charge recognised in the income statement
–11,930
Total remeasurements recognised in other comprehensive income
42,284
Employer contributions
8,727
Net defined benefit obligations as at 30 June
–145,258
15 FAIR VALUE DISCLOSURES
FAIR VALUES
Due to their short-term nature, the carrying amounts of cash and cash equivalents, fixed-term deposits, trade receivables, other current receivables and current liabilities are a reasonable approximation of their fair values.
Financial assets in the Airport of Zurich Noise Fund: The fair value of the bonds corresponds to the market price of the securities at the reporting date (level 1). The fair value of the mixed investment fund is the unadjusted net asset value, as the units may be redeemed at that value as at the reporting date (level 2).
Financial liabilities: The fair value of the debentures corresponds to the market price at the reporting date (level 1).
(CHF 1,000)
30.06.2021
31.12.2020
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets of Airport of Zurich Noise Fund (bonds)
292,516
297,804
312,391
318,665
Total financial assets
292,516
297,804
312,391
318,665
Debentures
–1,648,701
–1,657,419
–1,648,536
–1,672,925
Total financial liabilities
–1,648,701
–1,657,419
–1,648,536
–1,672,925
FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
Financial instruments recognised or disclosed at fair value are categorised according to the following hierarchy, reflecting the significance of the inputs used to measure fair value:
Level 1 – Quoted market prices
The inputs used to measure the assets or liabilities are quoted, unadjusted market prices determined in active markets for identical assets or liabilities at the measurement date.
Level 2 – Measurement based on observable inputs
The assets or liabilities are measured on the basis of inputs (other than the quoted prices included within level 1) that are directly or indirectly observable for the asset or liability.
Level 3 – Measurement based on unobservable inputs
The inputs for these assets or liabilities are not observable.
(CHF 1,000)
30.06.2021
31.12.2020
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Mixed investment fund of the Airport of Zurich Noise Fund at fair value
0
108,732
0
0
106,703
0
16 FURTHER DETAILS
16.1 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 Flughafen Zürich AG. As these circumstances indicated that the carrying amount of assets could be impaired, the company performed an impairment test for its cash-generating units (CGUs) and non-financial assets in accordance with IAS 36.
As at 31 December 2020, no impairment losses were required to be recognised for the assets concerned as a result of a detailed impairment test on the CGUs and non-financial assets.
As, in the first half of 2021, there were no additional significant negative indicators that had not already been taken into account in performing the calculation and impairment test at the end of 2020, Flughafen Zürich AG performed a summary impairment test on the CGUs and non-financial assets as at 30 June 2021. Once again, no impairment losses were required to be recognised as a result of the impairment test.
The detailed impairment test on the CGUs and non-financial assets will be updated at the end of the current financial year.
16.2 CONTINGENT LIABILITIES
A number of legal proceedings and claims against Flughafen Zürich AG in the context of its normal business activities are still pending. The company does not expect the amounts required to settle these lawsuits and claims to have a significantly negative impact on the consolidated financial statements and cash flow of Flughafen Zürich AG.
Depending on future and final-instance legal judgements, especially with respect to the southern approaches, noise-related liabilities may in future be subject to substantial adjustments, which would also require adjustments to the noise-related costs recognised as assets and liabilities in the balance sheet. At the present time, it is not possible to reliably estimate the total costs to capitalise as an intangible asset from the right of formal expropriation, the resulting amortisation or the corresponding provision.
Flughafen Zürich AG is jointly and severally liable to third parties for the liabilities of the co-ownership structure The Circle and the ordinary partnership The Circle.
16.3 EVENTS AFTER THE REPORTING DATE
The Board of Directors approved the 2021 interim consolidated financial statements and authorised them for issue on 19 August 2021.
