Quarterly Report • Aug 22, 2017
Quarterly Report
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www.viennaairport.com
Financial Indicators (in € million, excluding employees)
| H1/2017 | H1/20161 | Change in % | |
|---|---|---|---|
| Total revenue | 357.5 | 345.6 | 3.4 |
| Thereof Airport | 172.5 | 171.4 | 0.7 |
| Thereof Handling | 79.6 | 75.5 | 5.5 |
| Thereof Retail & Properties | 61.4 | 59.5 | 3.1 |
| Thereof Malta | 36.7 | 31.4 | 16.7 |
| Thereof Other Segments | 7.3 | 7.8 | -6.5 |
| EBITDA | 157.9 | 152.0 | 3.9 |
| EBITDA margin2 | 44.2 | 44.0 | n.a. |
| EBIT | 89.6 | 87.5 | 2.4 |
| EBIT margin3 | 25.1 | 25.3 | n.a. |
| Net profit | 60.1 | 57.6 | 4.4 |
| Netprofit parent company | 54.9 | 53.7 | 2.3 |
| Cash flow from operating activities | 136.1 | 134.7 | 1.0 |
| Capital expenditure4 | 61.3 | 50.5 | 21.4 |
| Income taxes | 21.1 | 20.0 | 5.6 |
| Average number of employees5 | 4,575 | 4.637 | -1.4 |
| 30.6.2017 | 31.12.2016 | Change in % | |
| Equity | 1,145.9 | 1,144.0 | 0.2 |
| Equity ratio (in %) | 56.4 | 56.7 | n.a. |
| Net debt | 323.7 | 355.5 | -8.9 |
| Total assets | 2,031.2 | 2,018.3 | 0.6 |
| Gearing (in %) | 28.2 | 31.1 | n.a. |
| Number of employees (end of period) | 4,615 | 4,626 | -0.2 |
| Industry Indicators | |||
| Passenger development of the Group | H1/2017 | H1/2016 | Change in % |
| Vienna Airport (in mill.) | 11.2 | 10.5 | 6.9 |
| Malta Airport (in mill.) | 2.6 | 2.2 | 20.3 |
| Kosice Airport (in mill.) | 0.2 | 0.2 | 11.0 |
| Vienna Airport and strat. Investments (VIE, MLA, KSC) | 14.0 | 12.9 | 9.2 |
| Traffic development Vienna Airport | |||
| Passengers (in mill.) | 11.2 | 10.5 | 6.9 |
| Thereof transfer passengers (in mill.) | 2.8 | 2.7 | 7.0 |
| Flight movements | 107,421 | 108,809 | -1.3 |
| MTOW (in mill. tonnes)6 | 4.2 | 4.1 | 3.6 |
| Cargo (air cargo and trucking; in tonnes) | 137,279 | 138,227 | -0.7 |
| Seat load factor (in %)7 | 71.9 | 70.0 | n.a. |
| Stock Market Indicators | | Ticker Symbols | |
| Market capitalisation | Reuters | VIEV.VI | |
| (as of 30.6.2017; in € mill.) 2,793.0 |
Bloomberg | FLU:AV | |
| Stock price: high (15.5.2017; in €) 35.32 |
Nasdaq | FLU-AT | |
| Stock price: low (3.1.2017 in €) 23.59 |
ISIN | AT00000VIE62 | |
| Stock price as of 30.6.2017 (in €) 33.25 |
Spot market | FLU | |
| Stock price as of 31.12.2016 (in €) 23.40 |
ADR | VIAAY |
Definitions:
1) Comparative figures adjusted 2) EBITDA margin (Earnings before Interest, Taxes, Depreciation and Amortisation) = EBITDA/ Revenue 3) EBIT margin (Earnings before Interest and Taxes) = EBIT / Revenue 4) Capital expenditure: intagible assets, property, plant and equipment and prepayments including corrections to invoices from previous years, excluding financial assets 5) Average number of employees: Weighted average number of employees including apprentices, excluding employees on official non-paying leave (maternity, military, etc.) and the Management Board and managing directors 6) MTOW: Maximum take-off weight for aircraft 7) Seat load factor: Number of passengers / available number of seats
The Flughafen Wien Group (FWAG) performed very well in the first half of 2017. Considerable passenger growth at our airports in Vienna, Malta and Košice to 14.05 million travellers – equating to a year-on-year rise of 9.2% – ensured that a new record was set. Despite a sharp improvement in the seat load factor, the number of aircraft movements also increased by 1.1% to 129,560 take-offs and landings. Particularly noteworthy was the 20.3% passenger growth at Malta Airport.
At Vienna Airport, with 11.2 million passengers, 6.9% more travellers were handled than in 2016, with the growth distributed evenly between local and transfer passengers. This increase is all the more gratifying because it was not expected to be so large at the start of the year. After all, the significant declines in passenger numbers resulting from the restructuring of airberlin first had to be made up for. But strong growth at Austrian Airlines, Eurowings and easyJet in particular ensured a sharp rise overall with more frequent flights and new destinations. Details can be found on the following pages.
The credit for coping with the further rise in passenger numbers while keeping the high service quality stable, as confirmed by international surveys, belongs to our highly motivated and excellently qualified employees, to whom we express our heartfelt thanks here.
The positive passenger figures are also reflected in the economic results: Revenues climbed by 3.4% in this period to € 357.5 million (H1/2016: € 345.6 million). This was primarily attributable to rising revenues from aircraft handling and de-icing, the acquisition of new customers and the strong growth in Malta.
Despite positive non-recurring effects in the previous year, EBITDA grew by 3.9% to € 157.9 million (H1/2016: € 152.0 million). The EBITDA margin therefore increased slightly from 44.0% to 44.2%. EBIT improved by 2.4% to € 89.6 million. The EBIT margin was practically unchanged at 25.1%. Net profit increased by 4.4% to € 60.1 million.
The balance sheet structure of FWAG as at 30 June 2017 also improved further compared to the end of the previous year. Debt will continue to be reduced in order to provide the necessary scope for the planned future investments. Net debt was lowered by € 31.8 million to currently € 323.7 million. Gearing fell from 31.1% as at 31 December 2016 to currently 28.2%.
However, the first half of 2017 also brought important changes of direction for the future. For example, we are making good progress on the development and improvement of our infrastructure. The planning for a new office building and for the improvement and extension of the terminal complex is in full swing and Airport-City continues to grow.
The third runway project is of course of tremendous importance for the long-term development of the airport as well as the business location as a whole. After the Federal Administrative Court's unexpected adverse verdict as the court of second instance, which prohibited the construction, our appeal to the Austrian Constitutional Court was successful. The supreme court saw fundamental legal principles violated, repealed the Federal Administrative Court's decision and referred the case back to the Federal Administrative Court for a decision in line with the Constitutional Court's verdict.
We are optimistic for the rest of the financial year and can adjust our guidance upwards following the positive developments of the first few months. We are now expecting passenger growth of over 5% for the Flughafen Wien Group and over 4% for Vienna Airport itself. Accordingly, consolidated net profit for 2017 is set to be considerably higher than that of the previous year.
Finally, we would sincerely like to thank you, our shareholders, and the Supervisory Board for the trust you have shown in us!
Schwechat, 14 August 2017 The Management Board
Günther Ofner Julian Jäger Member, CFO Member, COO
Note: In accordance with an assessment of the Austrian Financial Market Authority regarding the consolidation of Malta Airport, the consolidated financial statements and interim consolidated financial statements of Flughafen Wien AG for 2016 were restated as if Malta Airport had been consolidated from 2006. For further information, see "VI. Retrospective Restatement" in the notes to the 2016 consolidated financial statements.
The Flughafen Wien Group reported a 9.2% increase in passengers to 14,049,749 in total at its Vienna, Malta and Košice sites in the first half of 2017. In addition to the increase in local passengers of 9.8% to 11,140,163, the number of transfer passengers also rose by 7.2% year-on-year to 2,845,406. The number of movements in the Group rose by 1.1% in the first two quarters to 129,560 take-offs and landings. By contrast, the cargo volume decreased slightly to 144,509 tonnes (down 0.4%).
Vienna Airport counted 11,223,813 passengers in total from January to June 2017 (H1/2016: 10,500,971 passengers).
A key role in this good development was played by Austrian Airlines and Eurowings (including Germanwings), which greatly expanded their services this year and also achieved a higher seat load factor. This more than compensated the decline in passengers resulting from the restructuring measures at NIKI and airberlin.
Figures in detail: Local passengers numbered 8,337,273 in the first half of 2017, corresponding to growth of 6.8%. In terms of transfers, Vienna Airport strenghtend its hub function and generated significant growth of 7.0% to 2,834,632 passengers.
The number of passengers departing to Western Europe increased by 5.4% to 3,918,434 (H1/2016: 3,716,891), mainly as a result of more extensive services by Austrian Airlines and Eurowings (including Germanwings). The positive trend in the CEE region also continued with strong growth of 11.3%. The region became a key growth driver in the first half of 2017 (945,946 departing passengers; H1/2016: 850,188), with one highlight being the recovery of traffic towards Russia with new airlines and more frequent flights.
Increased services to the Far East led to growth in departing passengers of 8.0% to 201,668. 10.8% more passengers year-on-year flew to the Middle East in the first six months of 2017 thanks to increased services to Iran and Dubai. The number of passengers departing to North America fell by 2.2% to 143,425 despite the start of flights to Los Angeles. This development is caused by capacity reductions to other North American destinations. Long-distance destinations in other continents were added in return.
1) Retroactive adjustment of traffic data
Despite the persistently unstable situation in North Africa, individual tourist regions, above all Egypt, have recovered. As a result, Vienna Airport reported passenger growth of 32.1% to 85,383 passengers departing to Africa.
The average capacity utilisation (seat load factor) of flights (scheduled and charter) increased significantly from 70.0% in the first half of 2016 to 71.9% in the current year.
The biggest customer, Austrian Airlines, was able to achieve good utilisation of the additional capacity of five airberlin aircraft (wet lease) and thus achieved strong passenger growth in the first half of 2017. This increased its share of total passenger volume at Vienna Airport to 46.8% (H1/2016: 44.2%).
Vienna Airport's second biggest home carrier, Eurowings (including Germanwings), increased its passenger volume to 990,245 in the first half of 2017 (up 77.2%). Its share of total passenger volume was therefore 8.8% (2016: 5.3%). This was thanks to the addition of numerous new destinations and more frequent flights.
NIKI saw its passenger numbers plummet by 69.8% on account of its greatly reduced offering. Its seat load factor was down by 2.0 percentage points due to the use of larger aircraft. Its share of total passenger volume declined to 2.6% (H1/2016: 9.2%). airberlin was again affected by discontinued routes and less frequent services in the first half of 2017, with its passenger numbers down markedly by 14.7% to 95,832 passengers. Its total passenger volume at Vienna Airport therefore decreased by 1.2 percentage points to a share of 5.0%.
The number of flight movements fell by 1.3% in the first half of 2017 to 107,421 take-offs and landings (H1/2016: 108,809). By contrast, the maximum take-off weight (MTOW) increased by 3.6% to 4,241,504 tonnes on account of the increased use of larger aircraft (H1/2016: 4,095,861 tonnes). The cargo volume was down marginally by 0.7% at 137,279 tonnes from January to June.
In the first six months of the year, Malta Airport posted passenger growth of 20.3% to 2,639,712, attributable to both the increase in seat capacity (+19.3%) and a higher seat load factor of 80.4% (H1/2016: 80.0%).
The most important markets for Malta Airport in H1/2017 were the UK (675,677 passengers), Italy (548,952 passengers) and Germany (346,770 passengers).
The largest customer, Ryanair, flew 36.9% more passengers (1,019,337) in the first half of the year. The home carrier Air Malta also experienced a slight increase of 2.5% to 725,574 passengers. The third largest customer, easyJet, was up 5.8% year-on-year with 141,142 passengers in the reporting period.
Košice Airport reported an increase in its passenger numbers of 11.0% to 186,224 in the first half of 2017. The smallest airport in the Group thus continued its positive trend.
The Flughafen Wien Group (FWAG) generated revenues of € 357.5 million in the first six months of 2017 (H1/2016: € 345.6 million), an increase of 3.4%. This is as a result of several effects: Rising revenues from apron handling due to the use of larger aircraft, the acquisition of new customers, price adjustments and higher de-icing revenues of € 52.4 million (H1/2016: € 48.7 million). Revenues from shopping and food services likewise rose by € 1.5 million to € 22.2 million (H1/2016: € 20.7 million). Passenger growth at Malta Airport is reflected in an increase in revenues of € 5.2 million to € 36.7 million. The positive effect of passenger growth in the Airport Segment is offset by adjustments to incentives, which are intended to strengthen airline bases at the Vienna site, as a result of which this segment's revenues rose at a slower rate than the number of passengers. Thus, airlines are offered different incentives to support growth, that lead to new destinations and increased frequencies on exisiting routes – as intended. This in turn resulted in temporary reductions in revenues. In the longterm however, this volume growth will be also reflected in increased top-line numbers.
Other operating income declined from € 6.3 million to € 5.6 million year-on-year. While other income almost halved by € 1.6 million to € 1.9 million on account of a nonrecurring effect recognised in the previous year, own work capitalised for investment projects rose by € 0.8 million in the Group to € 3.7 million.
Expenses for consumables and services used climbed by € 1.4 million to € 18.6 million in the first six months of 2017. While expenses increased on account of the higher consumption of de-icing materials and fuels due to the colder winter, energy costs remained at the previous year's level.
Personnel expenses rose by € 2.9 million or 2.2% as against the previous year from € 134.3 million to € 137.3 million. This increase is essentially due to non-recurring effects as a result of updating actuarial parameters in the previous year. Wages were therefore up by € 2.4 million year-on-year at € 57.6 million, while salaries rose by € 2.2 million to € 45.7 million. By contrast, severance expenses were reduced by € 1.2 million to € 3.2 million. The average headcount at the Flughafen Wien Group declined from 4,637 to 4,575 (down 1.4%).
Other operating expenses rose by € 1.2 million or 2.5% year-on-year to € 50.6 million (H1/2016: € 49.3 million). The main changes were in the area of purchased services (up € 0.8 million). Specifically this related to services (such as IT) purchased at the Malta site. Legal, auditing and consulting costs likewise increased by € 0.6 million on account of pending litigation. The costs of maintenance, refurbishment and repairs to buildings, technical equipment, runways and aprons rose by € 0.5 million year-on-year to € 10.1 million. Offsetting this, marketing and market communication expenses declined by € 0.3 million to € 11.2 million.
The results of investments in companies recorded at equity amounted to € 1.2 million after € 0.9 million in the previous year, reflecting the operational improvement of these investments.
Positive non-recurring effects of € 9.6 million in total were recognised in EBIT in the previous year. € 4.9 million of this relates to EBITDA items and essentially comprises the effects of updating actuarial parameters for staff provisions and reversals of unutilised provisions. In addition to the reversal of impairment losses of € 3.9 million, depreciation and amortisation were reduced by € 0.8 million.
EBITDA rose by 3.9% year-on-year to € 157.9 million (H1/2016: € 152.0 million) as a result of the positive revenue performance and despite the positive non-recurring effects in the previous year. The EBITDA margin therefore rose only slightly year-on-year from 44.0% to 44.2%. Taking into account the positive non-recurring effects in the previous year (€ 4.9 million), EBITDA would have improved by approx. 7% and the EBITDA margin for H1/2016 would have been around 42.6%.
Depreciation and amortisation (including impairment) of € 68.3 million (H1/2016: € 68.5 million) was reported in the first half of 2017. However, the reversal of an impairment loss on the cash-generating unit (CGU) "Real Estate Office" of € 3.9 million was recognised in the previous year (depreciation and amortisation including reversal of impairment in total H1/2016: € 64.5 million).
The better EBITDA allowed EBIT to rise by 2.4% to € 89.6 million (H1/2016: € 87.5 million). The EBIT margin fell slightly year-on-year from 25.3% to 25.1%. Adjusted for positive non-recurring effects of € 9.6 million in the previous year, the increase in EBIT amounts to around 15%.
Financial results changed from minus € 9.9 million in the same period of the previous year to minus € 8.4 million. Income from investments (not including at-equity investments) fell by € 0.1 million year-on-year to € 0.5 million. Net interest income also improved from minus € 10.5 million to minus € 8.9 million mainly on account of lower interest expenses due to the repayment of financial liabilities.
Earnings before taxes (EBT) amounted to € 81.2 million in the first six months (up 4.7% as against H1/2016: € 77.6 million). After deducting income taxes of € 21.1 million (H1/2016: € 20.0 million), the net profit for the period amounted to € 60.1 million (H1/2016: € 57.6 million), an increase of 4.4%. The previous year's net profit for the period included positive non-recurring effects of € 7.2 million, which would reflect an increase of net profit of approx. 19%.
The net profit attributable to shareholders of the parent company rose by € 1.2 million to € 54.9 million (up 2.3%). The net profit for the period attributable to non-controlling interests amounted to € 5.2 million for the first two quarters (H1/2016: € 3.9 million).
The Flughafen Wien Group's revenues increased by € 5.2 million (up 2.7%) to € 196.9 million in the second quarter of 2017 (Q2/2016: € 191.6 million). This is largely due to the positive passenger development at Malta Airport, whereby revenues increased by € 3.4 million year-on-year. Revenues from apron handling at Vienna Airport increased by € 1.5 million. The Retail & Properties Segment generated an increase in revenues of € 1.0 million. Airport revenues at the Vienna site remained stable despite passenger growth on account of adjustments to incentives since the previous year.
Other operating income was higher than in the same quarter of the previous year at € 3.3 million (Q2/2016: € 2.7 million) as more own work was capitalised in Q2/2017 than in Q2/2016.
Expenses for consumables and services used remained constant year-on-year at € 8.0 million. By contrast, personnel expenses rose by € 2.1 million to € 69.7 million due to the non-recurring effects of updating actuarial parameters in the previous year. Other operating expenses declined from € 27.2 million in the same quarter of the previous year to € 26.2 million.
The pro rata share of net profit for the period of the investments recorded at equity rose from € 0.7 million to € 0.9 million as a result of the better operative result. This resulted in a rise in EBITDA of € 5.0 million (up 5.4%) for the second quarter of 2017 to € 97.2 million (Q2/2016: € 92.3 million).
Depreciation of property, plant and equipment and amortisation of intangible assets (including impairment losses and reversals thereof) increased by € 3.7 million year-onyear to € 33.7 million (Q2/2016: € 30.0 million). The higher EBITDA allowed EBIT to rise by € 1.3 million compared to Q2/2016 to € 63.5 million (Q2/2016: € 62.3 million).
Financial results were minus € 3.8 million in the second quarter of 2017 after minus € 4.5 million in Q2/2016. This is essentially due to lower interest expenses on account of the repayment of financial liabilities.
At € 59.7 million, the profit before taxes was higher than the previous year's figure of € 57.8 million. This also led to higher tax expenses of € 15.5 million for the second quarter of 2017 (Q2/2016: € 14.8 million). Overall, the net profit for the second quarter of 2017 improved by 2.6% to € 44.2 million (Q2/2016: € 43.0 million). The net profit for the period of the parent company amounted to € 40.0 million, thus climbing by 0.4% (Q2/2016: € 39.8 million). The net profit attributable to non-controlling interests for the second quarter was € 4.1 million (Q2/2016: € 3.2 million).
Net debt declined to € 323.7 million as at 30 June 2017, down € 31.8 million compared to the start of the year. While the equity ratio fell minimally by 0.3 percentage points to 56.4%, gearing decreased by € 31.8 million from 31.1% (31 December 2016) to currently 28.2% as a result of the lower net debt.
Net cash flow from operating activities was € 136.1 million in the first six months of 2017 after € 134.7 million in the previous year. The slight increase was essentially thanks to the improved operating result. While receivables were up by € 4.5 million compared to the previous year, there was a cash inflow in liabilities and provisions of € 10.2 million. Income tax payments amounted to € 18.3 million in the first half of 2017. Including repayments, this figure was only € 0.3 million in the previous year.
Net cash flow from investing activities amounted to minus € 57.4 million after plus € 41.1 million on account of the extraordinary effect of an advance payment in connection with a finance lease with Austrian Airlines in the prior-year period (€ 69.1 million). Payments for acquisitions of non-current assets amounted to € 48.3 million (H1/2016: € 28.2 million) in the reporting period. In total, there were also short-term investments of € 10.0 million.
Free cash flow (net cash flow from operating activities plus net cash flow from investing activities) amounted to € 78.7 million in H1/2017 (H1/2016: € 175.8 million).
Net cash flow from financing activities of minus € 73.8 million (H1/2016: minus € 173.5 million) is attributable to repayments of financial liabilities of € 60.4 million, proceeds from the borrowing of cash advances for short-term financing of € 44.0 million and the distribution of dividends of € 57.4 million (€ 52.5 million of which for shareholders of Flughafen Wien AG and € 4.9 million of which for non-controlling interests). In addition, payments of € 60.4 million were recognised for the acquisition of noncontrolling interests in the previous year.
Cash and cash equivalents amounted to € 48.4 million as at 30 June 2017 (31 December 2016: € 43.4 million).
The change in non-current assets from € 1,835.9 million as at the end of 2016 to € 1,829.2 million as at 30 June 2017 was essentially due to depreciation and amortisation and to capital expenditure in the first half of the year. In addition to capital expenditure for intangible assets, property, plant and equipment and investment property of € 61.3 million (H1/2016: € 50.5 million), depreciation and amortisation (including impairment losses of € 0.7 million and a reversal of € 3.9 million recognised in the prior-year period) amounted to € 68.3 million (H1/2016: € 64.5 million). Thanks to positive operating results (less distributed dividends) the carrying amounts of investments recorded at equity increased by € 0.4 million to € 40.6 million as at 30 June 2017.
Current assets rose by € 19.6 million as against the end of the year to € 202.0 million (31 December 2016: € 182.4 million), which is due to several effects. Cash and cash equivalents amounted to € 48.4 million (31 December 2016: € 43.4 million). Meanwhile, time deposits of € 50.0 million are reported under other assets (31 December 2016: € 40.0 million). Trade receivables (including receivables from non-consolidated subsidiaries) increased from € 54.8 million to € 56.6 million as a result of the positive revenue performance. Prepaid expenses amounted to € 5.2 million after € 3.2 million as at 31 December 2016. The increase is due to intra-year prepaid expenses and is expected to be reduced by the end of the year. The "Receivables and other assets" item therefore rose by € 14.8 million to € 122.2 million. Like at the end of the 2016 reporting, the "Assets available for sale" item includes land with a carrying amount of € 3.8 million (31 December 2016: € 4.3 million). The carrying amount of securities grew by € 0.5 million to € 21.8 million as at 30 June 2017 as a result of market valuation. Inventories were down marginally by € 0.2 million at € 5.8 million.
Equity has risen by 0.2% to € 1,145.9 million since 31 December 2016 (€ 1,144.0 million). This is due firstly to the net profit for the period (including the results of non-controlling interests) for the first six months of € 60.1 million, and secondly to the dividend distribution of € 57.4 million, € 52.5 million of which was distributed to shareholders of Flughafen Wien AG and € 4.9 million to the non-controlling interests of the MIA Group and MMLC. The revaluation of defined benefit plans, the market valuation of securities and funds and the partial disposal of an uncertificated security led to a reduction in other reserves of € 1.0 million. The equity ratio was therefore 56.4% as at 30 June 2017 after 56.7% as at the end of 2016.
Non-current liabilities declined by € 29.0 million to € 623.1 million, essentially as a result of reclassifications from non-current to current financial liabilities. Non-current financial liabilities amounted to € 368.8 million as at 30 June 2017 (31 December 2016: € 396.3 million).
Deferred tax liabilities decreased to € 55.3 million after € 58.9 million as at 31 December 2016. On the one hand, long-term provisions increased by € 3.1 million to € 156.5 million as a result of additions to staff provisions while, on the other, miscellaneous non-current liabilities were reduced by € 1.1 million to € 42.5 million due to scheduled reclassifications to current liabilities.
Current liabilities rose by € 40.0 million in total to € 262.2 million in the first two quarters (31 December 2016: € 222.2 million). Short-term provisions climbed by € 20.2 million year-on-year to € 107.4 million as a result of intra-year deferrals. In return, trade payables declined € 3.3 million to € 31.3 million. Tax provisions changed by € 6.2 million to € 7.7 million as at 30 June 2017 as a result of additions due to the positive operating result. Current financial liabilities increased from € 63.9 million to € 75.0 million. The change is attributable to reclassifications from non-current financial liabilities (€ 27.5 million), repayments (€ 60.4 million) and the acceptance of cash advances (€ 44.0 million). Miscellaneous current liabilities increased from € 34.9 million to € 40.8 million as at 30 June 2017 as a result of higher other social security liabilities as at the end of the reporting period and higher intra-year deferred income.
A total amount of € 61.3 million (H1/2016: € 50.5 million) was invested in intangible assets, property, plant and equipment and investment property in the first six months of 2017. The largest additions were for land purchases of € 14.2 million, capital expenditure for the expansion of Air Cargo Centre East of € 10.6 million, terminal alterations at Malta Airport of € 8.4 million, the expansion of a transformer station for € 2.2 million and investments in connection with taxiways at Vienna Airport in the amount of € 2.0 million.
The aviation industry is strongly affected by general political and economic trends at national and international level, which are therefore closely monitored. That said, the overall risk position of the Flughafen Wien Group (FWAG) remains stable.
After the global economy achieved its lowest growth rate since 2009 in 2016, there are clear signs of a recovery in the current year. Based mainly on an increase in domestic demand in Asia and Europe, a rise in global economic growth is expected in 2017 and 2018 (source: OECD Economic Outlook, 7 June 2017).
The Austrian economy saw its highest growth in six years at the beginning of 2017, a trend which is expected to continue throughout the year as a whole and in 2018. The forecast growth rates (2017: 2.4%; 2018: 2.0%) are well above the euro area average for the same period of the previous year (sources: OECD Economic Outlook, 7 June 2017, WIFO, 29 June 2017).
Globally, the IATA (International Air Transportation Association) is presenting a positive outlook for the aviation industry overall, forecasting higher growth rates in traffic volumes. Growth in cargo is also set to be dynamic (source: IATA, June 2017).
Uncertainties in the geopolitical field persist in the shape of the political ties between the European Union and Russia. Owing to its function as a hub for traffic between Eastern and Western Europe, Vienna Airport is currently being negatively affected by the EU's economic and political sanctions against Russia. However, there has recently been a recovery in traffic to Russia. In the first half of 2017, for example, S7 and UTair – airlines new to Vienna Airport – began flights from Vienna to Moscow. The airline Aeroflot also increased the frequency of its weekly flights to Moscow.
Political tension and terrorist threats in individual countries and regions have a negative impact on bookings in the respective tourist destinations. In the past, however, it has been observed that such declines were of a short-term nature or were compensated by other destinations. Negative effects on the volume of traffic at Vienna Airport would arise if these substitution effects are only partial or alternative destinations are served by private transport. Furthermore, negative sales effects are possible in duty free if passengers from non-EU destinations avoid destinations within the internal market.
According to IHS (Institute for Advanced Studies), the UK's imminent departure from the European Union will not have direct consequences for the Austrian economy on account of the relatively low intensity of economic ties. However, as the specific terms of the exit are still unclear at this time, there could still be negative repercussions for Vienna Airport in some areas. This is particularly true if the UK leaves the European Economic Area (EEA) as well, or if there is no effective follow-up for the future rules for trade relationships, which could ultimately weaken economic growth in Europe.
As the UK is already not a party to the Schengen Agreement, the aviation processes will not be affected by its forthcoming exit from the EU.
Austrian Airlines has continued to perform well in the first half of 2017. From January to June 2017, Austrian Airlines was able to achieve an increase in passengers throughout Austria of almost 13.5% compared to the same period of 2016.
The renewal of the short- and medium-haul fleet is continuing as planned. A total of 21 Fokker 70 and 100 aircraft will be replaced by 17 significantly larger Embraer 195s. The introduction of the Embraer jets will be completed by the end of August 2017. Above all, the announcement of the further expansion of long-haul routes with an additional Boeing 777 in the coming year is good news for Vienna Airport's hub function. The new destinations flown to will be Tokyo (from the 2018 summer flight plan) and Cape Town (from the 2018/19 winter flight plan).
After a good result in 2016 (EBIT: € 65 million; adjusted EBIT: € 58 million), Austrian Airlines improved its adjusted EBIT again from € - 0.1 million to € 3.0 million in the first half of 2017 and generated growth in passenger numbers of 13.5%. Airlines traditionally generate the biggest earnings contribution in the third quarter, hence adjusted EBIT is also expected to increase over 2017 as a whole compared to 2016 (source: Austrian Airlines, 2 August 2017).
The airberlin Group has embarked on a far-reaching restructuring since 2016. As part of this restructuring, airberlin's passenger volume at Vienna Airport was reduced by 14.7% in the first half of the year and that of NIKI by a further 69.8%. However, these declines were more than compensated by growth by other carriers at the site (especially Austrian Airlines, Eurowings and easyJet).
NIKI's plans to form a new carrier together with the German airline TUIfly have been put on hold for now after Etihad broke off talks in June 2017. There are now plans for TUI to take over the new carrier in full. However, Etihad's specific plans for NIKI are not known at the current time. This also means certain risks and uncertainties for Vienna Airport. However, as with airberlin's declines, NIKI's significantly lower traffic volume was completely compensated by other airlines at the site in the first half of 2017.
In terms of competition with other airports, there are indications that Lufthansa is expanding its long-haul operations at Munich Airport. As a result competition with Vienna Airport could become more intense as the catchment areas of the Munich and Vienna Airports overlap in some places. In the immediate catchment area of Vienna Airport, the activities of Ryanair at Bratislava Airport continue to be regarded as particularly relevant and remain under close observation.
In handling services, Flughafen Wien AG was able to successfully defend its leading market position in aircraft and cargo handling in the first half of 2017. Price pressure on upstream service providers remains high given the high level of competition between the airlines. However, Flughafen Wien AG can continue to offer very competitive prices on the market thanks to ongoing improvements in cost efficiency and productivity. For example, the company has successfully extended its current ground handling agreement with its main customer Austrian Airlines until the end of 2025. The new terms agreed for the contract renewal will mean slightly lower revenues at the current volume. However, thanks to the efficiency enhancements referred to above, this will largely have no effect on the margin or income. In addition to Austrian Airlines, long-term handling agreements have also been concluded with Lufthansa and SWISS.
In addition to the above industry-specific risks, the airport investment in Malta is still exposed to uncertainty regarding the financial turnaround of its home carrier Air Malta
(market share in 2016: around 31%), especially as the search for a strategic partner has so far been fruitless. At least in the short term, the loss of the airline would have negative repercussions on passenger traffic at Malta Airport, but in the medium to long term it can be assumed that new airlines or those already represented at the site would serve the existing demand.
The forthcoming exit negotiations between the UK and the European Union are also relevant to Malta Airport as the UK is its largest market with a share of around 27% (2016) of total passenger traffic. If the UK leaves the European Economic Area or the European internal aviation market as well, this could lead to restrictions in aviation rights in the EU area for British carriers and EU carriers in the UK. However, as the exit negotiations are still only just beginning, no conclusions can be drawn about the specific effects at this time.
On 9 February 2017 the Federal Administrative Court overturned the ruling regarding the "Parallel runway 11R/29L" (third runway) project. Flughafen Wien AG appealed against this decision to the Austrian Constitutional Court. The Constitutional Court allowed this appeal on 29 June 2017 and revoked the decision by the Federal Administrative Court.
The Federal Administrative Court must now revise its decision and continue the proceedings on the basis of the Constitutional Court's ruling. Based on the currently foreseeable passenger development, Vienna Airport will reach its capacity limits after 2020, though a third runway will not be available before 2025. The project is therefore crucial to ensuring the availability of sufficient capacity in time.
In FWAG's opinion, a lawsuit filed against FWAG by former lessee Rakesh Sardana in New York for \$ 168 million (currently around € 143 million) is devoid of any factual or legal basis.
All asset valuations are based on the assumption that Vienna Airport will maintain its position as an east-west hub. Further information could be found in the 2016 annual financial statements.
Information on significant transactions with related parties can be found under note 9 in the notes to the condensed consolidated interim financial statements.
Vienna Airport and its investments Malta Airport and Košice Airport together handled 3.3 million passengers in July 2017, comprising an increase of 6.9% from July 2016. Accumulated passenger volume in the period January to July 2017 rose by 8.8% to 17.3 million passengers.
The number of passengers handled by Vienna Airport in July 2017 increased by 4.5% compared to the prior-year month of July to 2,542,158 passengers. The number of local passengers was up 4.6% and tranfer passenger volume climbed by 4.5%. In July 2017 the number of flight movements increased by 0.9% year-on-year. Cargo volume at Vienna Airport also rose by 3.4% compared to July 2016.
Due to the good traffic development so far, FWAG is expecting a rise in passenger numbers of 5% for the full year in the Flughafen Wien Group and a rise of 4% at Vienna Airport respectively. Consequently, this should lead to a higher net profit at year-end of 2017 compared to 2016.
Schwechat, 14 August 2017 The Management Board
Günther Ofner Julian Jäger Member, CFO Member, COO
C o n d e n s e d C o n s o l i d a t e d I n t e r i m F i n a n c i a l S t a t e m e n t s as of 30 June 2017
| Amounts in T€ | H1/2017 | H1/20161 C. in % | Q2/2017 | Q2/20161 | |
|---|---|---|---|---|---|
| Revenues | 357,497.8 | 345,590.4 | 3.4 | 196,866.5 | 191,625.5 |
| Other operating income | 5,611.9 | 6,324.3 | -11.3 | 3,311.3 | 2,709.0 |
| Operating income | 363,109.7 | 351,914.7 | 3.2 | 200,177.8 | 194,334.5 |
| Expenses for consumables and purchased services |
-18,593.8 | -17,154.9 | 8.4 | -7,956.5 | -7,990.9 |
| Personnel expenses | -137,280.2 | -134,333.0 | 2.2 | -69,689.8 | -67,577.3 |
| Other operating expenses | -50,555.6 | -49,329.2 | 2.5 | -26,154.2 | -27,163.3 |
| Pro rata results of companies recorded at equity |
1,204.4 | 875.7 | 37.5 | 854.7 | 671.4 |
| Earnings before interest, taxes, depre ciation and amortisation (EBITDA) |
157,884.5 | 151,973.3 | 3.9 | 97,232.0 | 92,274.5 |
| Depreciation and amortisation | -67,592.8 | -68,468.7 | -1.3 | -33,421.0 | -33,925.8 |
| Reversals of impairment | 0.0 | 3,945.5 | -100.0 | 0.0 | 3,945.5 |
| Impairment | -705.9 | 0.0 | n.a. | -264.6 | 0.0 |
| Earnings before interest and taxes (EBIT) |
89,585.8 | 87,450.1 | 2.4 | 63,546.4 | 62,294.2 |
| Income from investments, excluding companies recorded at equity |
465.1 | 560.0 | -17.0 | 465.1 | 560.0 |
| Interest income | 392.5 | 1,119.5 | -64.9 | 321.5 | 743.8 |
| Interest expense | -9,323.7 | -11,570.1 | -19.4 | -4,743.6 | -5,772.1 |
| Other financial result | 109.9 | 0.0 | n.a. | 109.9 | 0.0 |
| Financial result | -8,356.2 | -9,890.6 | 15.5 | -3,847.0 | -4,468.3 |
| Earnings before taxes (EBT) | 81,229.6 | 77,559.5 | 4.7 | 59,699.4 | 57,825.9 |
| Income taxes | -21,117.2 | -19,993.5 | 5.6 | -15,535.0 | -14,783.5 |
| Net profit for the period | 60,112.4 | 57,566.1 | 4.4 | 44,164.4 | 43,042.3 |
| Thereof attributable to: | |||||
| Equity holders of the parent | 54,947.7 | 53,712.9 | 2.3 | 40,018.5 | 39,843.9 |
| Non-controlling interests | 5,164.7 | 3,853.1 | 34.0 | 4,145.9 | 3,198.4 |
| Earnings per share (in €, basic = diluted) |
0.65 | 0.64 | 2.3 | 0.48 | 0.47 |
1) Figures for H1/2016 and Q2/2016 adjusted (see section VI in the notes to the consolidated financial statements 2016)
| in T€ | H1/2017 | H1/20161 | C. in % | Q2/2017 | Q2/20161 |
|---|---|---|---|---|---|
| Net profit for the period | 60,112.4 | 57,566.1 | 4.4 | 44,164.4 | 43,042.3 |
Other comprehensive income from items that will not be reclassified to the consolidated income statement in future periods
| Revaluations from defined benefit plans |
-1,463.2 | 4,946.0 | n.a. | -1,248.8 | 4,761.2 |
|---|---|---|---|---|---|
| Thereof deferred taxes | 365.8 | -1,236.5 | n.a. | 312.2 | -1,190.3 |
| Change in fair value of available-for-sale securities |
343.8 | 325.5 | 5.6 | 146.9 | 624.4 |
|---|---|---|---|---|---|
| Thereof changes not recognised through profit or loss |
453.8 | 325.5 | 39.4 | 256.8 | 624.4 |
| Thereof realised gains and losses | -109.9 | 0.0 | n.a. | -109.9 | 0.0 |
| Thereof deferred taxes | -85.1 | -81.8 | 4.1 | -36.7 | -157.3 |
| Other comprehensive income | -838.7 | 3,953.3 | n.a. | -826.4 | 4,038.0 |
| Total comprehensive income | 59,273.7 | 61,519.3 | -3.7 | 43,338.0 | 47,080.3 |
| Thereof attributable to: | |||||
|---|---|---|---|---|---|
| Equity holders of the parent | 54,107.9 | 57,667.0 | -6.2 | 39,190.9 | 43,882.7 |
| Non-controlling interests | 5,165.8 | 3,852.3 | 34.1 | 4,147.1 | 3,197.7 |
1) Figures for H1/2016 and Q2/2016 adjusted (see section VI in the notes to the consolidated financial statements 2016)
| in T€ | 30.6.2017 | 31.12.2016 | C. in % |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 157,621.8 | 158,964.6 | -0.8 |
| Property, plant and equipment | 1,464,500.2 | 1,455,926.9 | 0.6 |
| Investment property | 132,019.4 | 145,849.2 | -9.5 |
| Investments in companies recorded at equity | 40,587.1 | 40,235.1 | 0.9 |
| Other assets | 34,428.0 | 34,910.0 | -1.4 |
| 1,829,156.6 | 1,835,885.8 | -0.4 | |
| Current assets | |||
| Inventories | 5,818.7 | 5,970.2 | -2.5 |
| Securities | 21,749.5 | 21,301.7 | 2.1 |
| Assets available for sale | 3,844.4 | 4,307.9 | -10.8 |
| Receivables and other assets | 122,244.8 | 107,423.5 | 13.8 |
| Cash and cash equivalents | 48,377.9 | 43,438.5 | 11.4 |
| 202,035.3 | 182,441.8 | 10.7 | |
| Total assets | 2,031,191.9 | 2,018,327.6 | 0.6 |
| EQUITY & LIABILITIES | |||
| Equity | |||
| Share capital | 152,670.0 | 152,670.0 | 0.0 |
| Capital reserves | 117,657.3 | 117,657.3 | 0.0 |
| Other reserves | 1,826.9 | 2,847.9 | -35.8 |
| Retained earnings | 790,204.8 | 787,576.0 | 0.3 |
| Attributable to equity holders of the parent | 1,062,359.0 | 1,060,751.1 | 0.2 |
| Non-controlling interests | 83,518.7 | 83,224.1 | 0.4 |
| 1,145,877.7 | 1,143,975.2 | 0.2 | |
| Non-current liabilities | |||
| Provisions | 156,450.9 | 153,302.3 | 2.1 |
| Financial liabilities | 368,831.4 | 396,310.3 | -6.9 |
| Other liabilities | 42,530.6 | 43,627.3 | -2.5 |
| Deferred tax liabilities | 55,335.8 | 58,947.0 | -6.1 |
| 623,148.7 | 652,186.9 | -4.5 | |
| Current liabilities | |||
| Tax provisions | 7,739.2 | 1,585.4 | n.a. |
| Other provisions | 107,373.4 | 87,132.9 | 23.2 |
| Financial liabilities | 74,975.2 | 63,917.0 | 17.3 |
| Trade payables | 31,291.9 | 34,593.7 | -9.5 |
| Other liabilities | 40,785.8 | 34,936.5 | 16.7 |
| 262,165.5 | 222,165.4 | 18.0 | |
| Total equity and liabilities | 2,031,191.9 | 2,018,327.6 | 0.6 |
| in T€ | H1/2017 | H1/20161 | C. in % | |
|---|---|---|---|---|
| Profit before taxes | 81,229.6 | 77,559.5 | 4.7 | |
| + | Depreciation and amortisation of non-current assets | 67,592.8 | 68,468.7 | -1.3 |
| - | Reversals of impairment | 0.0 | -3,945.5 | -100.0 |
| + | Impairment | 705.9 | 0.0 | n.a. |
| - | Pro rata results of companies recorded at equity | -1,204.4 | -875.7 | 37.5 |
| + | Dividends from companies recorded at equity | 852.3 | 1,156.9 | -26.3 |
| + | Losses / - gains on the disposal of non-current assets | -437.3 | 91.6 | n.a. |
| - | Reversal of investment subsidies from public funds | -118.8 | -111.6 | 6.5 |
| + | Other non-cash transactions | 82.0 | 74.2 | 10.6 |
| + | Interest and dividend result | 8,466.2 | 9,890.6 | -14.4 |
| + | Dividends received | 465.1 | 560.0 | -17.0 |
| + | Interest received | 491.1 | 1,113.0 | -55.9 |
| - | Interest paid | -9,510.0 | -11,648.1 | -18.4 |
| - | Increase / + decrease in inventories | 151.5 | 19.0 | n.a. |
| - | Increase / + decrease in receivables | -4,497.9 | -7,760.8 | -42.0 |
| + | Increase / - decrease in liabilities and provisions | 10,168.7 | 428.4 | n.a. |
| Net cash flows from ordinary operating activities | 154,437.0 | 135,020.0 | 14.4 | |
| - | Income taxes paid | -18,294.4 | -285.9 | n.a. |
| Net cash flow from operating activities | 136,142.6 | 134,734.1 | 1.0 | |
| + | Payments received on the disposal of non-current assets |
909.8 | 134.8 | n.a. |
| - | Payments made for the purchase of non-current assets |
-48,320.9 | -28,176.0 | 71.5 |
| + | Payments received for assets available for sale | 0.0 | 69,095.1 | -100.0 |
| + | Payments received of short-term investments | 20,000.0 | 0.0 | n.a. |
| - | Payments made for short-term investments | -30,000.0 | 0.0 | n.a. |
| Net cash flow from investing activities | -57,411.1 | 41,053.8 | n.a. | |
| - | Dividend payment to Flughafen Wien AG shareholders |
-52,500.0 | -42,000.0 | 25.0 |
| - | Dividend payment to non-controlling interests | -4,871.3 | -4,829.8 | 0.9 |
| - | Payments for the acquisition of non-controlling interests |
0.0 | -60,409.5 | -100.0 |
| + | Payments received from the borrowing of financial liabilities |
44,000.0 | 5,610.9 | n.a. |
| - | Payments made for the repayment of financial liabilities |
-60,420.7 | -71,893.9 | -16.0 |
| Net cash flow from financing activities | -73,792.0 | -173,522.3 | -57.5 | |
| Change in cash and cash equivalents | 4,939.4 | 2,265.6 | n.a. | |
| + | Cash and cash equivalents at the beginning of the period |
43,438.5 | 44,738.2 | -2.9 |
| Cash and cash equivalents at the end of the period | 48,377.9 | 47,003.9 | 2.9 |
1) Figures for H1/2016 adjusted (see section VI in the notes to the consolidated financial statements 2016)
| Attributable to equity holders of the parent | |||||||
|---|---|---|---|---|---|---|---|
| Amounts in T€ | Share capital |
Capital reserves |
Total other reserves |
Retained earnings |
Total | Non-con trolling interests |
Total |
| As at 1.1.2016 as previously reported1 |
152,670.0 | 117,657.3 | -16,426.1 | 765,993.0 | 1,019,894.3 | 104.3 1,019,998.5 | |
| Retrospective restatement |
0.0 | 0.0 | 18,262.4 | -1,519.5 | 16,742.9 | 102,543.4 | 119,286.3 |
| Balance on 1.1.2016 adjusted1 |
152,670.0 | 117,657.3 | 1,836.3 | 764,473.5 | 1,036,637.2 | 102,647.7 1,139,284.9 | |
| Market valuation of securities |
244.5 | 244.5 | -0.8 | 243.8 | |||
| Revaluation from defined benefit plans |
3,709.5 | 3,709,5 | 0.0 | 3,709.5 | |||
| Other comprehen sive income |
0.0 | 0.0 | 3,954.0 | 0.0 | 3,954.0 | -0.8 | 3,953.3 |
| Net profit for the period |
53,712.9 | 53,712.9 | 3,853.1 | 57,566.1 | |||
| Total comprehensi ve income |
0.0 | 0.0 | 3,954.0 | 53,712.9 | 57,667.0 | 3,852.3 | 61,519.3 |
| Reversal of revaluation surplus |
-181.1 | 181.1 | 0.0 | 0.0 | 0.0 | ||
| Changes from the acquisition of non-controlling interests |
-37,898.9 | -37,898.9 | -22,510.6 | -60,409.5 | |||
| Dividend payment | -42,000.0 | -42,000.0 | -4,829.8 | -46,829.8 | |||
| As at 30.6.20161 | 152,670.0 | 117,657.3 | 5,609.3 | 738,468.6 | 1,014,405.2 | 79,159.7 1,093,564.9 | |
| As at 1.1.2017 | 152,670.0 | 117,657.3 | 2,847.9 | 787,576.0 | 1,060,751.1 | 83,224.1 1,143,975.2 | |
| Market valuation of securities |
257.6 | 257.6 | 1.2 | 258.7 | |||
| Revaluation from defined benefit plans |
-1,097.4 | -1,097.4 | 0.0 | -1,097.4 | |||
| Other comprehen sive income |
0.0 | 0.0 | -839.8 | 0.0 | -839.8 | 1.2 | -838.7 |
| Net profit for the period |
54,947.7 | 54,947.7 | 5,164.7 | 60,112.4 | |||
| Total comprehensi ve income |
0.0 | 0.0 | -839.8 | 54,947.7 | 54,107.9 | 5,165.8 | 59,273.7 |
| Reversal of revaluation surplus |
-181.1 | 181.1 | 0.0 | 0.0 | 0.0 |
Dividend payment -52,500.0 -52,500.0 -4,871.3 -57,371.3
As at 30.6.2017 152,670.0 117,657.3 1,826.9 790,204.8 1,062,359.0 83,518.7 1,145,877.7 1) Figures for 2016 adjusted (see section VI in the notes to the consolidated financial statements 2016)
The condensed consolidated interim financial statements of Flughafen Wien AG as at 30 June 2017 were prepared in accordance with IAS 34, as adopted by the European Union (EU).
In accordance with IAS 34 (Interim Financial Reporting), the condensed consolidated interim financial statements do not include all the information and disclosures that are required for annual financial statements, and should therefore be read in conjunction with the consolidated financial statements of Flughafen Wien AG as at 31 December 2016.
In addition to the information provided in the notes and interim financial statements, other detailed information can be found in the management report (IAS 34.16A).
These condensed consolidated interim financial statements have been neither audited nor reviewed by a chartered accountant.
The accounting policies and calculation methods used to prepare the 2016 consolidated financial statements were also used to prepare the condensed interim consolidated financial statements. Additional information on these accounting policies and the new standards effective as at 1 January 2017 is provided in the consolidated financial statements as at 31 December 2016, which form the basis for these condensed interim consolidated financial statements.
The following standards and interpretations were already published at 31 December 2016 but are not effective in the financial year (from 1 January 2017) as they have not yet been endorsed as European law by the EU:
The adoption of these standards is not currently expected to lead to any significant changes for the interim consolidated financial statements or the consolidated financial statements.
The use of automatic data processing equipment can lead to rounding differences in the addition of rounded amounts and percentage rates.
In the context of an indication-based examination of the accounting of Flughafen Wien AG, the Austrian Financial Market Authority (FMA) came to the conclusion in a ruling dated 27 December 2016 that Malta International Airport plc., its subsidiaries (MIA Group) and Malta Mediterranean Link Consortium Limited (MMLC) should have been included in consolidation in the financial statements prior to 31 March 2016.
The financial statements were therefore restated retrospectively back to 2006 in the 2016 consolidated financial statements. The consolidated financial statements as at 31 December 2016, including the comparative figures for previous periods, have been presented as if these companies had been included in consolidation from the first quarter of 2006.
For further information see "VI. Retrospective Restatement" in the notes to the 2016 consolidated financial statements.
The tables below show the effects on the respective items of the interim consolidated financial statements (H1/2016):
| Consolidated Income Statement in T€ |
As reported H1/2016 |
Retro spective Re statement |
Adjusted H1/2016 |
|---|---|---|---|
| Revenues | 334,360.5 | 11,229.9 | 345,590.4 |
| Other operating income | 6,376.5 | -52.2 | 6,324.3 |
| Operating income | 340,736.9 | 11,177.7 | 351,914.7 |
| Expenses for consumables and purchased services | -16,563.3 | -591.7 | -17,154.9 |
| Personnel expenses | -132,377.7 | -1,955.2 | -134,333.0 |
| Other operating expenses | -44,483.3 | -4,845.9 | -49,329.2 |
| Pro rata results of companies recorded at equity | 2,400.1 | -1,524.4 | 875.7 |
| Revaluation of companies recorded at equity due to company acquisitions |
51,827.3 | -51,827.3 | 0.0 |
| Earnings before interest, taxes, depreciation and | 201,540.1 | -49,566.8 | 151,973.3 |
| amortisation (EBITDA) | |||
| Depreciation and amortisation | -67,160.1 | -1,308.5 | -68,468.7 |
| Reversals of impairment | 3,945.5 | 0.0 | 3,945.5 |
| Earnings before interest and taxes (EBIT) | 138,325.4 | -50,875.3 | 87,450.1 |
| Income from investments, excluding companies recorded at equity |
560.0 | 0.0 | 560.0 |
| Interest income | 803.1 | 316.4 | 1,119.5 |
| Interest expense | -11,036.5 | -533.6 | -11,570.1 |
| Financial results | -9,673.4 | -217.2 | -9,890.6 |
| Earnings before taxes (EBT) | 128,652.1 | -51,092.6 | 77,559.5 |
| Income taxes | -19,124.7 | -868.7 | -19,993.5 |
| Net profit for the period | 109,527.4 | -51,961.3 | 57,566.1 |
| Thereof attributable to: | |||
| Equity holders of the parent | 106,400.3 | -52,687.3 | 53,712.9 |
| Non-controlling interests | 3,127.1 | 726.0 | 3,853.1 |
| Earnings per share (in €, basic = diluted) | 1.27 | -0.63 | 0.64 |
27
| Retro spective |
|||
|---|---|---|---|
| Consolidated statement of comperehensive income in T€ |
As reported H1/2016 |
Re statement |
Adjusted H1/2016 |
| Net profit for the period | 109,527.4 | -51,961.3 | 57,566.1 |
| reclassified to the consolidated income statement in future periods | |||||
|---|---|---|---|---|---|
| Revaluations from defined benefit plans | 4,946.0 | 0.0 | 4,946.0 | ||
| Thereof deferred taxes | -1,236.5 | 0.0 | -1,236.5 |
| Change in fair value of available-for-sale securities | 329.2 | -3.7 | 325.5 | |||
|---|---|---|---|---|---|---|
| Thereof changes not recognised through profit or loss |
329.2 | -3.7 | 325.5 | |||
| Thereof realised gains and losses | 0.0 | 0.0 | 0.0 | |||
| Thereof deferred taxes | -82.3 | 0.6 | -81.8 | |||
| Other comprehensive income | 3,956.4 | -3.2 | 3,953.3 | |||
| Total comprehensive income | 113,483.8 | -51,964.5 | 61,519.3 | |||
| Thereof attributable to: | |||
|---|---|---|---|
| Equity holders of the parent | 110,356.7 | -52,689.7 | 57,667.0 |
| Non-controlling interests | 3,127.1 | 725.3 | 3,852.3 |
| in T€ | Consolidated Cash flow statement | As re ported H1/2016 |
Retro spective Re statement |
Adjusted H1/2016 |
|---|---|---|---|---|
| Profit before taxes | 128,652.1 | -51,092.6 | 77,559.5 | |
| + | Depreciation and amortisation of non-current assets |
67,160.1 | 1,308.5 | 68,468.7 |
| - | Reversal of impairment | -3,945.5 | 0.0 | -3,945.5 |
| - | Pro rata results of companies recorded at equity | -2,400.1 | 1,524.4 | -875.7 |
| - | Revaluation of companies recorded at equity due to company acquisitions |
-51,827.3 | 51,827.3 | 0.0 |
| + | Dividends from companies recorded at equity | 1,499.5 | -342.6 | 1,156.9 |
| + | Losses/- gains on the disposal of non-current assets | 91.6 | 0.0 | 91.6 |
| - | Reversal of investment subsidies from public funds | -111.6 | 0.0 | -111.6 |
| - | Other non-cash transactions | 0.0 | 74.2 | 74.2 |
| + | Interest and dividend result | 9,673.4 | 217.2 | 9,890.6 |
| + | Dividends received | 560.0 | 0.0 | 560.0 |
| + | Interest received | 803.1 | 309.9 | 1,113.0 |
| - | Interest paid | -10,884.9 | -763.2 | -11,648.1 |
| - | Increase/+ decrease in inventories | 14.7 | 4.3 | 19.0 |
| - | Increase/+ decrease in receivables | -6,670.2 | -1,090.6 | -7,760.8 |
| + | Increase/- decrease in liabilities and provisions | -229.1 | 657.4 | 428.4 |
| Net cash flows from ordinary operating activities | 132,385.7 | 2,634.2 | 135,020.0 | |
| - | Income taxes paid | -172.7 | -113.2 | -285.9 |
| Net cash flow from operating activities | 132,213.0 | 2,521.1 | 134,734.1 | |
| + | Payments received on the disposal of non-current assets |
134.8 | 0.0 | 134.8 |
| - | Payments made for the purchase of non-current assets |
-28,174.2 | -1.8 | -28,176.0 |
| + | Payments received for assets available for sale | 69,095.1 | 0.0 | 69,095.1 |
| - | Payments received in connection with non | |||
| refundable grants | -17,820.5 | 17,820.5 | 0.0 | |
| Net cash flow from investing activities | 23,235.1 | 17,818.7 | 41,053.8 | |
| - | Dividend payment to Flughafen Wien AG shareholders |
-42,000.0 | 0.0 | -42,000.0 |
| - | Dividend payment to non-controlling interests | -4,829.8 | 0.0 | -4,829.8 |
| - | Payments for the acquisition of non-controlling interests |
0.0 | -60,409.5 | -60,409.5 |
| + | Payments received from the borrowing of financial liabilities |
5,610.9 | 0.0 | 5,610.9 |
| - | Payments made for the repayment of financial liabilities |
-71,893.9 | 0.0 | -71,893.9 |
| Net cash flow from financing activities | -113,112.8 | -60,409.5 | -173,522.3 | |
| Change in cash and cash equivalents | 42,335.4 | -40,069.7 | 2,265.6 | |
| + | Cash and cash equivalents at the beginning of the period |
4,668.5 | 40,069.7 | 44,738.2 |
| Cash and cash equivalents at the end of the period | 47,003.9 | 0.0 | > 47,003.9 |
The following changes in the consolidated group occurred after 31 December 2016: The company Load Control International SK s.r.o. (LION) was founded by Flughafen Wien AG and included in full consolidation in the first half of 2017. The company, which is based in Slovakia, is assigned to the Handling Segment and performs handling services for Group companies.
As at 30 June 2017, the condensed consolidated interim financial statements include Flughafen Wien AG plus 20 domestic (31 December 2016: 20) and 14 foreign subsidiaries (31 December 2016: 13) which are controlled by Flughafen Wien AG. In addition, three domestic companies (31 December 2016: 3) and one foreign company (31 December 2016: 1) were accounted for using the equity method.
Three (31 December 2016: 3) subsidiaries were not included in the condensed consolidated interim financial statements as they are immaterial to a true and fair view of the asset, financial and earnings position of the Flughafen Wien Group.
IFRS 8 requires segment reporting to reflect the Group's internal reporting structure. The operating segments of the Flughafen Wien Group include the business units of Flughafen Wien AG that form the basis for the company's organisation and the individual subsidiaries and investments in companies recorded at equity. These operating segments are aggregated into the following reporting segments: Airport, Handling, Retail & Properties, Malta and Other Segments. The management of the Flughafen Wien Group is based on reporting that covers profit and loss, capital expenditure and employee-related data for the individual business units of Flughafen Wien AG plus revenues, EBITDA, EBIT, planned investments and employee-related data for the individual subsidiaries.
| H1/2017 in T€ | Airport | Handling | Retail & Properties |
Malta | Other Segments |
Group |
|---|---|---|---|---|---|---|
| External segment revenues |
172,533.0 | 79,636.5 | 61,381.5 | 36,656.1 | 7,290.8 | 357,497.8 |
| Internal segment revenues |
17,258.8 | 34,549.8 | 6,726.4 | 0.0 | 52,308.4 | |
| Segment revenues | 189,791.8 | 114,186.2 | 68,107.9 | 36,656.1 | 59,599.2 | |
| Segment EBITDA | 78,663.8 | 10,299.4 | 38,249.3 | 20,373.7 | 10,298.3 | 157,884.5 |
| Segment revenues and segment results 2017 | |||
|---|---|---|---|
| ------------------------------------------- | -- | -- | -- |
| Segment EBITDA margin (in %) |
41.4 | 9.0 | 56.2 | 55.6 | 17.3 | |
|---|---|---|---|---|---|---|
| Segment EBIT | 34,079.3 | 7,531.1 | 29,257.5 | 16,106.2 | 2,611.7 | 89,585.8 |
| Segment EBIT margin (in %) |
18.0 | 6.6 | 43.0 | 43.9 | 4.4 |
| H1/2016 in T€ | Airport | Handling | Retail & Properties |
Malta | Other Segments |
Group |
|---|---|---|---|---|---|---|
| External segment revenues |
171,415.3 | 75,453.6 | 59,508.6 | 31,414.0 | 7,799.0 | 345,590.4 |
| Internal segment revenues |
18,111.4 | 35,496.4 | 7,030.4 | 0.0 | 54,168.6 | |
| Segment revenues | 189,526.6 | 110,950.0 | 66,539.0 | 31,414.0 | 61,967.6 | |
| Segment EBITDA | 75,989.0 | 7,826.5 | 38,543.1 | 15,957.4 | 13,657.2 | 151,973.3 |
| Segment EBITDA margin (in %) |
40.1 | 7.1 | 57.9 | 50.8 | 22.0 | |
| Segment EBIT | 32,083.5 | 5,080.1 | 33,472.4 | 11,649.1 | 5,164.9 | 87,450.1 |
| Segment EBIT margin (in %) |
16.9 | 4.6 | 50.3 | 37.1 | 8.3 |
1) Figures for H1/2016 adjusted (see section VI in the notes to the consolidated financial statements 2016)
Items such as financial results and tax expense per operating segment are not stated in segment reporting as only the items up to EBIT are included in internal reporting, while these other items are monitored centrally. A separate reconciliation to EBT has not been shown. The remaining financial results are not allocated, partly due to the fact that debt is not allocated to segments. The debt of the Flughafen Wien Group is monitored centrally at a higher level. The income from companies accounted for at equity is shown in Other Segments.
The Airport Segment covers the operation and maintenance of aircraft movement areas, the terminals, the airside infrastructure and all equipment and facilities used for passenger and baggage handling. The responsibilities of this segment also include managing existing airline customers, acquiring new carriers, operating the lounges, rental of facilities to airlines, airport operations, fire brigade, medical services, access controls and winter services.
External revenues in the Airport Segment increased from € 171.4 million to € 172.5 million in the first six months of 2017. Security fee revenues rose by € 3.2 million year-on-year to € 46.8 million (H1/2016: € 43.6 million) due to passenger growth. Landing revenues increased by € 1.2 million to € 31.3 million. However, passenger fee revenues (including passengers with reduced mobility (PRM)) declined from € 73.0 million to € 69.0 million as a result of adjustments to incentives. Lounge revenues continued the positive trend of recent years and rose by € 0.5 million to € 4.2 million. Internal revenues declined by € 0.9 million year-on-year to € 17.3 million due to lower incidental rental revenues. Other income climbed by € 1.4 million to € 2.5 million as a result of higher work performed by the enterprise and capitalised (H1/2016: € 1.1 million).
The cost of external materials was up slightly by € 0.3 million compared to the same period of the previous year at € 1.5 million, primarily as a result of higher expenses for deicing. Personnel expenses rose by € 1.3 million to € 21.5 million on account of non-recurring effects recognised in the previous year. The average headcount increased from 496 to 509. Other operating expenses fell by € 0.5 million year-on-year to € 19.0 million. This is due in part to lower external maintenance costs and lower marketing and market communication expenses. Internal operating costs decreased by € 2.0 million to € 71.6 million in the first half of the year. This is largely attributable to lower expenses for purchased security services and IT equipment.
EBITDA in the Airport Segment improved by € 2.7 million to € 78.7 million. Depreciation and amortisation (including impairment) rose by € 0.7 million to € 44.6 million. EBIT therefore increased by € 2.0 million year-on-year to € 34.1 million (H1/2016: € 32.1 million). The EBITDA margin rose from 40.1% to 41.4%, while the EBIT margin improved from 16.9% to 18.0%.
As a ground and cargo handling agent, the Handling Segment provides services for aircraft and passenger handling in scheduled, charter and general aviation traffic. General aviation covers civil aviation, with the exception of scheduled and charter flights. Vienna Aircraft Handling Gesellschaft m.b.H. (VAH) is also in charge of operating the VIP & Business Centre at Vienna Airport. The Handling Segment is also responsible for security controls, which are provided by the subsidiary Vienna International Airport Security Services Ges.m.b.H. (VIAS). The subsidiary Vienna Passenger Handling Services GmbH (VPHS) has been providing ground handling services within the meaning of the Act on Airport Ground Handling since 2015. The subsidiary Load Control International SK s.r.o. (LION) founded in the first half of 2017 performs handling services for Group companies.
External revenues in the Handling Segment rose by € 4.2 million to € 79.6 million in the first two quarters of 2017 (H1/2016: € 75.5 million). Revenues from apron handling climbed from € 48.7 million to € 52.4 million due to the use of larger aircraft, the acquisition of new customers, price adjustments and higher de-icing revenues. Revenues from cargo handling increased from € 14.5 million to € 14.7 million in line with the cargo volume handled. The decline in traffic handling revenues from € 6.7 million to € 6.5 million is mainly due to NIKI/airberlin.
External revenues from security services provided by the subsidiary VIAS rose by € 0.3 million to € 1.9 million. The General Aviation area, including the operation of the VIP & Business Centre (including other segment revenues), generated an increase in revenues of € 0.3 million in the first six months of 2017. Internal revenues from security services declined by € 0.9 million to € 34.5 million. Other income increased by € 0.3 million year-on-year to € 0.5 million.
The cost of consumables was up by € 1.1 million compared to the same period of the previous year at € 4.0 million owing to higher expenses for de-icing materials and fuel consumption. Personnel expenses rose by € 0.4 million to € 81.8 million (H1/2016: € 81.4 million) with an average headcount of 2,973 (H1/2016: 3,062). Other operating expenses amounted to € 2.5 million (H1/2016: € 2.4 million). Internal operating expenses were reduced from € 16.6 million to € 16.1 million in the first half of 2017 as a result of lower internal maintenance work and internal staff costs.
EBITDA in the Handling Segment increased from € 7.8 million to € 10.3 million in the first six months of 2017 as a result of revenue growth. Adjusted for depreciation and amortisation of € 2.8 million (H1/2016: € 2.7 million), EBIT amounted to € 7.5 million after € 5.1 million in the same period of the previous year. The EBITDA margin was up by 2.0 percentage points year-on-year at 9.0% and the EBIT margin by 2.0 percentage points year-on-year at 6.6%.
The Retail & Properties Segment covers shopping, food services and car parking in addition to the development and marketing of properties and advertising space.
External revenues in the Retail & Properties Segment climbed by € 1.9 million year-onyear to € 61.4 million (H1/2016: € 59.5 million). This development was driven by higher revenues from shopping and food services, which increased by € 1.5 million to € 22.2 million. There were increases of € 0.2 million in both rental revenues and parking revenues to € 17.4 million and € 21.8 million respectively. Internal revenues declined slightly from € 7.0 million to € 6.7 million, while other income was down by € 1.0 million year-on-year at € 1.6 million.
The cost of materials was at roughly the same level as in the previous year at € 0.4 million (H1/2016: € 0.3 million). Personnel expenses rose by € 1.1 million to € 4.8 million in line with the higher allocated average headcount. Other operating expenses increased by € 6.3 million to € 6.9 million as a result of higher maintenance costs and marketing expenses. Internal operating expenses declined by € 0.9 million to € 19.4 million, mainly in the area of internal rentals.
EBITDA in the Retail & Properties Segment dipped from € 38.5 million to € 38.2 million in the first six months. Depreciation and amortisation rose to € 9.0 million (H1/2016: € 5.1 million) as a result of an impairment reversal of € 3.9 million in the previous year. EBIT therefore declined by € 4.2 million to € 29.3 million (H1/2016: € 33.5 million). The EBITDA margin was 56.2% (H1/2016: 57.9%) and the EBIT margin was 43.0% (H1/2016: 50.3%).
The Malta Segment includes Malta Airport (Malta International Airport plc, MIA) and its direct investments (hereinafter referred to as the MIA Group). Malta Airport and its investments are responsible for the operation of Malta Airport. In addition to traditional aviation services, the companies of the MIA Group also generate revenues from parking and the rental of retail and office space. Handling is performed by two external firms.
The Malta Segment's external revenues amounted to € 36.7 million in the first half of the year, and increased by € 5.2 million as a result of passenger growth (H1/2016: € 31.4 million). This increase largely results from aviation (up € 4.1 million). However, revenues from Retail & Properties were also up by € 1.0 million year-on-year at € 10.5 million.
The cost of materials was on par with the previous year's level at € 1.3 million. Personnel expenses were down by 2.5% at € 3.8 million despite the slightly higher number of employees. By contrast, other operating expenses rose by € 0.8 million to € 10.5 million, and included costs for security staff, cleaning, staff for PRM services, other third-party personnel services, marketing expenses, lease costs and maintenance costs. Internal operating expenses amounted to € 0.6 million (H1/2016: € 0.5 million).
The Malta Segment reported EBITDA of € 20.4 million for the first half of 2017 (H1/2016: € 16.0 million) with an EBITDA margin of 55.6% (H1/2016: 50.8%). Taking into account the segment's depreciation and amortisation of € 4.3 million, EBIT amounted to € 16.1 million (H1/2016: € 11.6 million) with an EBIT margin of 43.9% (H1/2016: 37.1%).
The segment entitled "Other Segments" provides a wide range of services, both for other operating segments and for external customers. This includes technical services and repairs, energy supply and waste disposal, telecommunications and information technology, technical services (electromechanical, building services, construction and maintenance of infrastructure facilities), construction management and consulting. This segment additionally includes the investments recorded at equity as well as investment holding companies, that have no operating activities, and are not independently reportable.
External revenues for Other Segments amounted to € 7.3 million in the first six months of 2017 (H1/2016: € 7.8 million). This decrease is due to lower revenues from energy supply and waste disposal. Internal revenues declined by € 1.9 million year-on-year to € 52.3 million (H1/2016: € 54.2 million). This reduction largely related to IT services and property management services for Group companies and other units. Other income amounted to € 1.0 million (H1/2016: € 2.4 million). The decline is essentially due to lower own work capitalised in this segment.
The cost of consumables and purchased services was constant year-on-year at € 11.5 million. Personnel expenses rose slightly by € 0.3 million to € 25.3 million with an average headcount of 686 (H1/2016: 699). Other operating expenses increased from € 11.4 million to € 11.7 million, largely on account of higher maintenance expenses.
The increase in the results of investments in companies recorded at equity reflects the better operative results of these investments. Positive income of € 1.2 million (H1/2016: € 0.9 million) was reported in the first half of 2017.
Overall, Other Segments reported a decline in EBITDA to € 10.3 million after € 13.7 million in the previous year owing to lower income. Adjusted for depreciation and amortisation of € 7.7 million (H1/2016: € 8.5 million), segment EBIT amounted to € 2.6 million (H1/2016: € 5.2 million). The EBITDA margin was 17.3% (H1/2016: 22.0%) and the EBIT margin was 4.4% (H1/2016: 8.3%).
| Amounts in T€ | 30.6.2017 | 31.12.2016 |
|---|---|---|
| Assets by segment | ||
| Airport | 1,158,920.8 | 1,191,971.8 |
| Handling | 37,500.9 | 35,714.6 |
| Retail & Properties | 312,794.4 | 294,591.1 |
| Malta | 328,206.0 | 319,287.7 |
| Other Segments | 97,769.6 | 98,658.7 |
| Total assets in reportable segments | 1,935,191.7 | 1,940,224.1 |
| Assets not allocated to a specific segment1 | ||
| Other financial assets | 2,422.5 | 2,584.6 |
| Current securities | 21,749.5 | 21,301.7 |
| Receivables due from taxation authorities | 1,556.2 | 2,816.8 |
| Other receivables and assets | 55,009.1 | 43,162.9 |
| Prepaid expenses | 3,455.0 | 1,349.3 |
| Cash and cash equivalents | 11,807.9 | 6,888.3 |
| Total assets not allocated to a specific segment | 96,000.2 | 78,103.5 |
1) Includes assets not allocated to a specific segment, except assets of the MIA Group
Land with a carrying amount of T€ 3,844.4 is reported under "Assets available for sale" in accordance with IFRS 5 as at 30 June 2017. The Flughafen Wien Group still expects this land to be sold within the next year. The recognition of these assets in accordance with IFRS 5 did not lead to the recognition of gains or losses as at 30 June 2017. This land is allocated to the Retail & Properties Segment.
| Amounts in T€ | Non-current financial liabilities |
Current financial liabilities |
Total |
|---|---|---|---|
| As at 1.1.2017 | 396,310.3 | 63,917.0 | 460,227.3 |
| Additions | 0.0 | 44,000.0 | 44,000.0 |
| Repayments | 0.0 | -60,420.7 | -60,420.7 |
| Reclassification | -27,478.9 | 27,478.9 | 0.0 |
| As at 30.6.2017 | 368,831.4 | 74,975.2 | 443,806.6 |
Depreciation and amortisation of € 67.6 million (H1/2016: € 68.5 million) was recognised in the first six months of 2017. A reversal of impairment losses of € 3.9 million was recognised in the previous year. Impairment losses in connection with the third runway project amounted to € 0.7 million in the first half of 2017.
| Amounts in T€ | H1/2017 | H1/2016 |
|---|---|---|
| Amortisation of intangible assets | 2,324.9 | 2,521.6 |
| Depreciation of property, plant and equipment | 65,267.9 | 65,947.1 |
| Reversal of impairment on property, plant and equipment | 0.0 | -3,945.5 |
| Impairment on property, plant and equipment | 705.9 | 0.0 |
| Total depreciation and amortisation including impairment losses and reversals thereof |
68,298.7 | 64,523.2 |
Despite the successful appeal to the Austrian Constitutional Court and the matter having been referred back to the Austrian Federal Administrative Court, there is still legal uncertainty regarding the realisation of the third runway project. An impairment loss of € 0.7 million was therefore recognised in the interim consolidated financial statements for 2017.
The liabilities to the environmental fund and the corresponding capitalised project costs of € 48.3 million were derecognised in the 2016 consolidated financial statements as the payment obligation was cancelled. This did not give rise to any changes in the first half of 2017.
In the previous year, impairment testing led to the reversal of impairment on a property in the "Real Estate Office" cash-generating unit totalling € 3.9 million, which was reported in the Retail & Properties Segment. This reversal was based on the current estimate of the medium-term development of the market and demand as defined by the forecast and the associated rise in the building's occupancy rate. Further information on measurement methods and inputs can be found in the 2016 consolidated financial statements.
Income taxes for the interim reporting period represent a best estimate of the weighted average annual income tax rate expected for the financial year as a whole. Tax expense for the Flughafen Wien Group comprises the following items:
| Amounts in T€ | H1/2017 | H1/2016 |
|---|---|---|
| Current income tax expense | 24,448.2 | 18,196.6 |
| Change in deferred taxes | -3,330.9 | 1,796.8 |
| Total taxes | 21,117.2 | 19,993.5 |
Business in the aviation industry is influenced by two different seasonal factors. The first factor is related to revenues, which are generally below average in the first and fourth quarters and above average in the second and third quarters. This pattern is a consequence of the increased passenger volume during the summer months in Europe. The second factor involves fluctuations in maintenance and repair expenses. Work of this type is generally performed during the autumn and winter, which has a higher negative effect on earnings at year-end.
As at 30 June 2017, obligations for the purchase of intangible assets amounted to € 0.2 million (31 December 2016: € 0.8 million) and obligations for the purchase of property, plant and equipment to € 35.4 million (31 December 2016: € 32.4 million).
In the case of a positive, legally binding second instance ruling regarding the third runway at Vienna Airport, the agreement with the environmental fund arising from the mediation procedure, would lead to a payment of an amount, which is calculated upon traffic figures. As at 30 June 2017 and the corresponding traffic figures, the obligation amounts to approx. € 52 million.
There have been no material changes in contingent liabilities or other financial obligations since the end of the last reporting period.
The group of related parties (legal entities and persons) is essentially unchanged since the last consolidated financial statements. There were the following changes in the Supervisory Board of Flughafen Wien AG:
Business relations with related parties did not change significantly as against the same period of the previous year and are conducted at ordinary market conditions.
There were no material transactions with related parties in the first six months of 2017. The third-party services purchased from related parties (non-consolidated subsidiaries or companies recorded at equity) amounted to € 6.3 million in the reporting period (H1/2016: € 5.9 million). Revenues with these companies amounted to € 0.2 million (H1/2016: € 0.2 million). Receivables amounted to € 2.4 million and liabilities to € 10.4 million as at 30 June 2017.
The following tables show the carrying amounts, fair values and valuations of financial assets and liabilities broken down by measurement category as at 30 June 2017 and 31 December 2016. The information on the fair value of financial assets and liabilities that are not recognised at fair value is for information purposes only. As the items "Receivables and other assets" and "Other liabilities" contain both non-financial assets and nonfinancial liabilities, the line "Non financial instruments" has been added in order to ensure the reconciliation of the carrying amounts to the corresponding statement of financial position item.
Management assumes that – with the exception of the items listed below – the carrying amounts of financial assets and financial liabilities reported at amortised cost essentially reflect fair value.
Trade receivables, originated loans and other receivables predominantly have short remaining terms and are therefore essentially at fair value. Trade payables and other liabilities also have predominantly short remaining terms, hence the amounts recognised for these items are approximately their fair value.
The fair values of financial liabilities to banks (bank loans) and other financial liabilities are calculated using the present value of the payments connected with these liabilities in accordance with the yield curve applicable to their respective remaining terms and an appropriate credit spread (level 2).
The fair value of the available-for-sale (AfS) fund is based on a listed fund (level 1).
The fair value of the available-for-sale (AfS) securities is based on rights from life insurance policies and calculated using the capitalisation value of these policies. The capitalisation value equals the coverage capital and the profit participation of the respective policy (level 2).
The fair value of the available-for-sale (AfS) debt instruments (securities) was calculated based on a price determined from credit spread and interest rate risk (level 2).
No items were reclassified between levels 1 and 2 in the reporting period.
39
| ASSETS | Carrying amount | |||
|---|---|---|---|---|
| Non current assets |
Current assets | |||
| Amounts in T€ | Valuation category |
Other financial assets |
Securities | Receivables and other assets |
| 30 June 2017 | ||||
| Financial assets carried at fair value | ||||
| Rights | AfS | 1,064.9 | ||
| Funds | AfS | 105.9 | ||
| Debt instruments (securities) | AfS | 21,749.5 | ||
| Financial assets not recognised at fair value | ||||
| Trade receivables 1 | LaR | 56,642.2 | ||
| Receivables due from associated companies | LaR | 2,291.0 | ||
| Other receivables 3 | LaR | 56,527.1 | ||
| Originated loans | LaR | 766.5 | ||
| Equity instruments (securities) 2 | AfS | 632.6 | ||
| Investment in other companies 2 | AfS | 117.5 | ||
| Cash and cash equivalents | Cash reserve | |||
| Non-financial instruments | ||||
| Other receivables and accruals | n.a. | 31,740.7 | 6,784.4 | |
| Total | 34,428.0 | 21,749.5 | 122,244.8 | |
| 31 December 2016 | ||||
| Financial assets carried at fair value | ||||
| Rights | AfS | 1,573.6 | ||
| Funds | 103.6 | |||
| Debt instruments (securities) | AfS | 21,301.7 | ||
| Financial assets not recognised at fair value | ||||
| Trade receivables 1 | LaR | 54,831.7 | ||
| Receivables due from associated companies | LaR | 2,425.0 | ||
| Other receivables 3 | LaR | 43,162.9 | ||
| Originated loans | LaR | 419.8 | ||
| Equity instruments (securities) 2 | AfS | 632.6 | ||
| Investment in other companies 2 | AfS | 116.3 | ||
| Cash and cash equivalents | Cash reserve | |||
| Non-financial instruments | ||||
| Other receivables and accruals | n.a. | 32,064.0 | 7,004.0 | |
| Total | 34,910.0 | 21,301.7 | 107,423.5 |
1) Less valuation allowances including receivables due from non-consolidated companies
2) Information on this has been omitted owing to immateriality (and lack of a quoted price).
3) Less valuation allowances
| ASSETS Carrying amount |
Fair value | |||||
|---|---|---|---|---|---|---|
| Non | ||||||
| current assets Current assets |
||||||
| Other Receivables |
Cash | |||||
| Valuation financial and other Amounts in T€ category assets Securities assets |
and cash equivalents |
Total Level 1 |
Level 2 | Level 3 | Total | Valuation approach as per IAS 39 |
| 1,064.9 | 1,064.9 | ||
|---|---|---|---|
| 105.9 | 105.9 | ||
| 21,749.5 | 21,749.5 | ||
| 56,642.2 | |||
| 2,291.0 | |||
| 56,527.1 | |||
| 766.5 | |||
| 48,377.9 | |||
| 48,377.9 | |||
| 632.6 117.5 48,377.9 38,525.0 226,800.3 |
| Fair value not recognised in profit or loss |
1,573.6 | 1,573.6 | 1,573.6 | ||
|---|---|---|---|---|---|
| Fair value not recognised in profit or loss |
103.6 | 103.6 | 103.6 | ||
| 21,301.7 | 21,301.7 | 21,301.7 | |||
| Amortised cost | |||||
| Amortised cost | 54,831.7 | ||||
| Amortised cost | 2,425.0 | ||||
| Amortised cost | 43,162.9 | ||||
| Cost | 419.8 | ||||
| 632.6 | |||||
| Cost | 116.3 | ||||
| Nominal value = fair value | 43,438.5 | 43,438.5 | |||
| 39,068.0 | |||||
| 207,073.7 | 43,438.5 |
| EQUITY & LIABILITIES | Carrying amounts | ||||
|---|---|---|---|---|---|
| Non-current liabilties | Current liabilities | ||||
| Amounts in T€ | Valuation category |
Financial liabilities |
Other liabilities |
Financial liabilities |
Trade payables |
| 30 June 2017 | |||||
| Financial liabilities recognised at fair value |
|||||
| n.a. | |||||
| Financial liabilities not recognised at fair value |
|||||
| Trade payables | FLAC | 31,291.9 | |||
| Financial liabilities | FLAC | 368,831.4 | 74,975.2 | ||
| Other liabilities | FLAC | 10,823.2 | |||
| Non-financial liabilities | |||||
| Other liabilities and accruals | n.a. | 31,707.4 | |||
| Total | 368,831.4 | 42,530.6 | 74,975.2 | 31,291.9 | |
| 31 December 2016 | |||||
| Financial liabilities recognised at fair value |
|||||
| n.a. | |||||
| Financial liabilities not recognised at fair value |
|||||
| Trade payables | FLAC | 34,593.7 | |||
| Financial liabilities | FLAC | 396,310.3 | 63,917.0 | ||
| Other liabilities | FLAC | 10,633.2 | |||
| Non-financial liabilities | |||||
| Other liabilities and accruals | n.a. | 32,994.1 | |||
| Total | 396,310.3 | 43,627.3 | 63,917.0 | 34,593.7 |
| Fair value | ||||||
|---|---|---|---|---|---|---|
| Valuation approach as per IAS 39 |
Total | Level 3 | Level 2 | Level 1 | Total | Other liabilities |
| Amortised cost | 31,291.9 | |||||
| Amortised cost | 502,448.5 | 502,448.5 | 443,806.6 | |||
| Amortised cost | 35,216.7 | 24,393.5 | ||||
| 48,099.7 | 16,392.3 | |||||
| 558,414.9 | 40,785.8 | |||||
| Amortised cost | 34,593.7 | |||||
| Amortised cost | 503,433.0 | 503,433.0 | 460,227.3 | |||
| Amortised cost | 34,326.6 | 23,693.5 | ||||
| 44,237.2 | 11,243.0 |
Abbreviations:
Total 396,310.3 43,627.3 63,917.0 34,593.7 34,936.5 573,384.8
FLAC – financial liabilities measured at amortised cost
Flughafen Wien AG and Austrian Airlines renewed their ground handling agreement in July 2017. The agreement covers all aircraft handling on the apron. At the same time, long-term handling agreements have also been concluded with Lufthansa and SWISS.
Other events after the end of the interim reporting period that are of material importance to accounting on 30 June 2017, such as pending legal proceedings or claims for damages, other obligations and anticipated losses which must be recognised or disclosed in accordance with IAS 10, are included in these interim financial statements or are not known.
Schwechat, 14 August 2017 The Management Board
Günther Ofner Julian Jäger Member, CFO Member, COO
in accordance with Section 87 (1) of the Austrian Stock Exchange Act
We confirm to the best of our knowledge that the condensed consolidated interim financial statements prepared in accordance with the applicable accounting standards provide a true and fair view of the asset, financial and earnings position of the Group and that the Group interim management report provides a true and fair view of the asset, financial and earnings position of the Group regarding important events that occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements regarding the principal risks and uncertainties for the remaining six months of the financial year and the major related party transactions to be disclosed.
Schwechat, 14 August 2017 The Management Board
Günther Ofner Julian Jäger Member, CFO Member, COO
Publisher Flughafen Wien Aktiengesellschaft P.O. Box 1 1300 Wien-Flughafen, Austria
Telephone: +43/1/7007-0 Telefax: +43/1/7007-23001
Data Registry Nr.: 008613 Corporate Register Nr.: FN 42984 m Court of Registry: Provincial Court Korneuburg
Mag. Judit Helenyi Telephone: +43/1/7007-23126 E-Mail: [email protected] Mario Santi Telephone: +43/1/7007-22826 E-Mail: [email protected]
Stephan Klasmann Telephone: +43/1/7007-22300 E-Mail: [email protected]
Peter Kleemann, MAS Telephone: +43/1/7007-23000 E-Mail: [email protected] The Flughafen Wien Group provides the following information in the Internet:
Flughafen Wien AG website: http://www.viennaairport.com Investor Relations: http://www.viennaairport.com/en/ company/investor_relations Noise protection programme at Vienna International Airport: http://www.laermschutzprogramm.at The environment and aviation: http://www.vie-umwelt.at Facts & figures on the third runway: http://www.viennaairport.com/ unternehmen/flughafen_wien_ag/3_piste Dialogue forum at Vienna International Airport:
http://www.dialogforum.at Mediation process (archive): http://www.viemediation.at
This Quarterly Report was prepared by VGN – Content Marketing / Corporate Publishing.
on behalf of Flughafen Wien AG
Concept and Graphic Design: Dieter Dalinger, Gabriele Rosenzopf MSc Layout, Table Layout and Coordination: Rene Gatti
Third Quarter Results
for 2017 15 November 2017
Disclaimer: This quarterly report contains assumptions and forecasts, which are based on information available up to the copy deadline on 14 August 2017. If the premises for these forecasts do not occur or risks indicated in the risk report arise, actual results may vary from these estimates. Although the greatest caution was exercised in preparing data, all information related to the future is provided without guarantee. The quarterly report 2/2017 of Flughafen Wien AG is also available on our homepage http://www.viennaairport.com/en/company/investor_relations under the menu point "Publications and reports".
www.viennaairport.com
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