Notes to the consolidated financial statements

The consolidated financial statements of the Zurich Airport Group – comprising Zurich Airport Ltd. and its subsidiaries – have been prepared in accordance with the IFRS Accounting Standards 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 the IFRS Accounting Standards 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of the financial statements subsequently deviate from the actual circumstances, the estimates and assumptions originally made are adjusted prospectively in the reporting year in which the circumstances changed.

Judgements made by the Management Board in its application of the IFRS Accounting Standards that have a significant effect on the consolidated financial statements, as well as 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.

Changes in accounting policies

The Zurich Airport Group adopted the following relevant amendments to the IFRS Accounting Standards which are mandatory for the first time for the financial year beginning 1 January 2025.

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 2025.

Introduction of new standards in 2025 and later

The following new or amended standards and interpretations issued by the end of 2025 and relevant to the company are not yet effective and were not applied early in these consolidated financial statements.

There were no changes to the scope of consolidation in the reporting year.

Consolidated group and methods of consolidation

The consolidated financial statements of the Zurich Airport Group comprise Zurich Airport Ltd. and all companies in Switzerland and abroad that it directly or indirectly controls. Zurich Airport Ltd. 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 revenue 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

The functional currency of each subsidiary is the currency of the principal territory in which it operates. Foreign currency transactions concluded by subsidiaries are translated at the exchange rate applicable to the respective transaction. Foreign currency monetary items are translated at the closing rate. The resulting currency gains and losses are recognised in profit or loss.

Within the consolidated accounts, all assets and liabilities booked in the respective functional currencies of the subsidiaries are translated at the closing rate into CHF – the reporting currency for the group accounts of the Zurich Airport Group and the functional currency of Zurich Airport Ltd. Revenue and expenses are translated according to the average rate for the period. Differences resulting from the translation of the opening book values for net assets and the net annual results for subsidiaries are recognised in other comprehensive income. In the event of a change or loss of control over a subsidiary, the translation differences previously recognised in equity are recognised in profit and loss.

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, 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.

Return on invested capital (ROIC)

ROIC is a profitability ratio that expresses the percentage of net operating profit after taxes (NOPAT) in relation to the average invested capital. NOPAT corresponds to EBIT minus calculated taxes.

Revenue recognition

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

Revenue in the ”Aviation” segment comprises in particular passenger and landing charges and revenue in the ”Noise” segment comprises noise 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 safety 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 fees for the support of passengers with reduced mobility are included in the ”PRM” segment. In particular, the ”Usage fees” segment includes fees for the use of central infrastructure facilities. Revenue in the ”Air security” segment mainly includes safety charges, and revenue in the ”Access fees” segment comes in particular from the fees for issuing airport badges. This revenue is also recognised immediately on rendering the service in question.

The main components in the ”Non-regulated business” segment are revenue from the marketing and rental of the commercial infrastructure at Zurich 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 over the contractual term. 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.

Revenue from international business comes mainly from the operation of airport infrastructure in Brazil, Chile and India. This includes the provision of regulated services (aviation services) directly in conjunction with related services, with revenue comprising mainly passenger and landing charges. It is also possible to provide unregulated services through the marketing and lease of airport areas and infrastructure. These services consist directly in the provision of areas and infrastructure, and the revenue is realised over the contractual term.

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. The useful life for each category is as follows:

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.

Investment subsidies and grants 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 investment subsidies and grants take the form of “a fonds perdu” grants and do not have to be repaid by the Zurich Airport Group.

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 Zurich Airport Group uses an incremental borrowing rate applicable for the country, as well as the term and currency of the contract. The lease liability is then classified and revalued at amortised cost based on the effective rate method (with a corresponding adjustment of the respective right to use the leased item) if future lease payments would change in the event of renegotiations, changes to an index or a revaluation of options. 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 rent or for capital appreciation. Investment property is valued at acquisition or production costs upon acquisition. Subsequent measurement is carried out at cost less scheduled straight-line depreciation and, if applicable, less impairment 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 is as follows:

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, Zurich Airport Ltd. was also granted a right of formal expropriation in respect of property owners exposed to aircraft noise. The right to formal expropriation was conferred on the condition that the associated costs should be borne by compensation payments. This right is capitalised as an intangible asset. Capitalisation takes place at the time at which the probable total costs can be estimated on the basis of court rulings and thus a reliable cost estimate in accordance with IAS 38.21 becomes possible. 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 licensed company as operator receives the right 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 cash value of the fixed concession liabilities. When calculating the cash value, the Zurich Airport Group uses an incremental borrowing rate applicable for the country, as well as the term and currency of the contract. 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 traffic-dependent 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.

Financial assets of the Airport Zurich Noise Fund

The financial assets of the Airport Zurich Noise Fund (AZNF) are comprised mainly of fixed-income bonds, which are held for the purpose of collecting interest and redemption payments at specified points in time. The investments are valued accordingly at amortised cost.

The credit risk associated with the financial investments of the AZNF is considered to be low at the reporting date (minimum rating: Standard & Poor’s A-), and accordingly an impairment charge has been recognised pursuant to IFRS 9 that represents the anticipated credit losses over a period of 12 months. Impairment charges are deducted from the gross book value of the investments.

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.

The Zurich Airport Group 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 there are indications of a potential impairment, 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.

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 court rulings (see note 11, 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 valuation of plan assets is carried out annually at fair value. The plan assets are deducted from the defined benefit obligation.

The defined benefit cost consists of three components:

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 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 on the reporting date. Changes in the present value are recognised in the income statement as personnel expenses.

Income taxes

Income taxes comprise current and deferred income 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. The measurement of deferred taxes takes into account the expected time and manner in which the affected assets and liabilities will be realised or repaid. The tax rates that apply or will enter into force on the reporting date are used. 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.

Deferred tax assets are only recognised if it is probable that the deductible temporary differences can be offset against future taxable profits. Deferred tax assets are recognised for unused tax losses if it is probable that future taxable profits will be earned, so that the loss carryforwards can actually be used.

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 Zurich Airport Ltd. 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.

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 the respective intangible assets and the obligation to recognise provisions for the related costs.

Zurich Airport Ltd. has received a total of around 20,000 noise-related claims for compensation, of which just over 5,000 were still pending at the end of 2025. Around 450 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 Zurich Airport Ltd. 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 approaches from the east 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 Zurich Airport Group 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 90.7 million had already been paid out at that date. As at 31 December 2025, a provision for the outstanding costs was recognised at their present value (see note 19, Provision for formal expropriations plus sound insulation and resident protection).

Depending on future legal judgements, amongst others 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 balance sheet. At the present time, a definitive assessment is not possible.

With respect to sound insulation and resident protection measures, the Federal Office of Civil Aviation (FOCA) required Zurich Airport Ltd., 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 in August 2017 was extended. In this context in mid-2018, Zurich Airport Ltd. 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 342.8 million had already been paid out at that date. As at 31 December 2025, a provision for the outstanding costs was recognised at their present value (see note 19, Provision for formal expropriations plus sound insulation and resident protection).

The carrying amounts of non-current non-financial assets (excluding deferred taxes) are assessed once a year for indications of impairment. If there are indications of a potential impairment, 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).

The discounted cash flow (DCF) method is used to calculate value in use for CGUs and non-financial assets for which there are indications of a potential impairment or for which an annual impairment test is required. The key assumptions used to determine recoverable amount are disclosed and explained in further detail below:

Investments in airport operator projects

The recoverable amount was determined for investments in airport operator projects as at 31 December 2025 based on value in use calculations using cash flow forecasts from the financial budgets for the remaining terms of the contractually agreed concessions (17 to 29 years). The country-specific WACC applied to the cash flow forecasts ranged from 9.7% to 11.3% (previous year: from 6.2% to 10.7%).

Result of impairment testing

Impairment testing of the CGUs and non-financial assets for which there were indications of possible impairment resulted in an impairment requirement of CHF 6.1 million for the CGU Iquique Airport (Chile) as at 31 December 2025 (see note 11, Intangible assets), which was recognised in the income statement (“Depreciation and amortisation”) in the reporting year. Impairment testing did not result in the impairment of any other assets.

In the case of agreements where the airport premises can be used both for the provision of regulated services and for the provision of non-regulated services, management must assess whether IFRIC 12 is applicable. If the unregulated business activities make a significant contribution to revenue, IFRIC 12 does not apply to that agreement. These assessments involve judgements by management.

The following table shows the reportable segments in the 2025 financial year:

In the “International” segment, “Depreciation and amortisation” included an impairment loss of CHF 6.1 million that arose on investments in international airport operator projects as a result of impairment calculations (see also Impairment of assets in accordance with IAS 36).

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

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:

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 a result, the Zurich Airport Group has the following reporting 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 Zurich Airport Ltd. 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.

→ PRM

The “PRM” (Passengers 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.

→ Usage fees

The “Usage fees” segment includes what are known as the central infrastructures. In particular, this refers to 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 Zurich Airport Ltd. 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 safety 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

Since 1 January 2021, revenue from aircraft noise charges has been 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 an originator pays principle, less expenses for formal expropriations, sound insulation and resident protection measures, and operating expenses.

→ 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.), revenue from multi-storey car parks plus a broad range of commercial services provided by Zurich Airport Ltd.

→ International

The “International” segment comprises the revenue and expenses of the subsidiaries and equity investments in the Zurich Airport Group’s international operations. This includes the revenue and expenses of the consolidated licensed companies in India, Brazil and Chile from the operation of the relevant airport infrastructure and revenue from consulting services. This segment also captures revenue 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 centre 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 centre 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 Swiss Ordinance on Airport Charges (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 the 2025 financial year, CHF 25.7 million (previous year: CHF 25.1 million) was attributed to the “Aviation” segment and included 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 safety charges is allocated in full to the “Security” segment and revenue from PRM charges to the “PRM” segment. All other flight operation charges are allocated to the “Aviation” segment. A breakdown of revenue by charge type can be found in note 2, Revenue.

Other disclosures

Of the total revenue of CHF 1,361.1 million (previous year: CHF 1,326.3 million), CHF 1,236.3 million (previous year: CHF 1,195.4 million) was generated in Switzerland and CHF 124.8 million (previous year: CHF 130.9 million) was generated abroad.

The company’s revenue with the Lufthansa Group in the reportable segments amounted to CHF 482.6 million in the past reporting year (previous year: CHF 470.0 million).

Of the non-current assets in accordance with IFRS 8.33 in the amount of CHF 4,495.9 million (previous year: CHF 4,071.5 million) CHF 3,586.0 million (previous year: CHF 3,359.9 million) is attributable to Switzerland and CHF 909.9 million (previous year: CHF 711.6 million) to foreign Group companies. Of this, CHF 577.4 million (previous year: CHF 368.0 million) is attributable to India.

Revenue from contracts with customers (IFRS 15) is comprised as follows:

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. The variable remuneration entails the achievement of a financial target with a weighting of two-thirds and the achievement of three qualitative targets that have a combined weighting of one-third. The financial target and the three qualitative targets as well as the target values are reviewed annually by the Board of Directors and, if necessary, adjusted.

The financial performance indicator corresponds to the EBITDA margin. The qualitative targets for 2025 are aligned to specific key performance indicators pertaining to sustainability, customer and passenger satisfaction as well as the recommendation rate/employee satisfaction.

The decision relating to the degree of achievement of the relevant target is taken in the following financial year (grant date). The variable remuneration paid to members of the Management Board and members of the most senior management is determined as a total amount based on target achievement, two-thirds of which is paid out in cash and one-third in shares.

For the year under review, expenses for share-based payments amount to CHF 1.2 million (previous year: CHF 1.2 million). 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 (April 2026). If the shares had been granted at the end of the year, 4,719 shares (previous year: 5,555 shares) would have been distributed.

Staff participation programme

Employees of Zurich Airport Ltd. who have completed their first year of service receive one share free of charge as a one-off payment in kind. In the 2025 financial year, 247 shares (previous year: 260 shares) worth CHF 0.1 million (previous year: CHF 0.1 million) were handed out.

Capitalised expenditure of CHF 21.7 million (previous year: CHF 21.0 million) comprises fees for the company’s architects and engineers as well as costs incurred by internal project managers and project staff.

Expenses for construction projects as part of concession agreements in the amount of CHF –10.4 million (previous year: CHF –26.8 million) resulted from investments in infrastructure at the airports in Brazil and Chile. Information regarding the revenue generated from this construction work can be found under note 2, Revenue.

In addition to the effect of adjusting the discount rate for calculating the present value of the provisions for sound insulation and resident protection, other expenses include losses from asset disposals and losses on receivables both in the reporting year and in the previous year.

The increased interest expense on liabilities to banks of CHF –17.8 million (prior-year period: CHF –13.0 million) is attributable in particular to the higher liabilities to banks at foreign airport concessions due to their construction activities (see note 18, Financial liabilities).

Interest income on fixed-term deposits and other financial assets increased year on year to CHF 8.0 million (prior-year period: CHF 6.8 million).

Income tax can be analysed as follows:

Global minimum taxation (BEPS Pillar 2)

The Zurich Airport Group falls within the scope of OECD minimum taxation (BEPS Pillar 2 rules). According to these new rules, international groups with revenues in excess of EUR 750 million must pay tax of at least 15% on the profits earned in each country in which they operate. The model rules were approved by a large number of countries in 2023 and came into force at the start of 2024. Switzerland implemented the new rules in the form of a constitutional amendment and a corresponding ordinance, which has been in force since 1 January 2024.

The Zurich Airport Group has assessed the impact of the BEPS Pillar 2 rules and carried out an analysis on the application of the “Transitional CbCR Safe Harbour Rules” based on qualified country-specific reporting data. This established that, in 2025, at least one of the three “transitional safe harbour tests” has been fulfilled in each country, with the result that no significant additional income taxes are due for 2025 within the ambit of global minimum taxation.

The Zurich Airport Group has applied the temporary exception to the IAS 12 requirements for deferred tax accounting resulting from the implementation of BEPS Pillar 2 rules.