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%.
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.
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).