Sustainability Report 2018 PDF, 11 MB

Our values Sustainability Report 2018 Sustainability Report 2018 Fraport AG 2 Sustainability Report 2018 Sustainability Report 2018 Content 3

Our vision: Fraport – from Frankfurt to the world. We are Europe’s best airport operator and set standards worldwide.

Foreword 4

Airports are hubs for growth and mobility. Our values 6 Competence 8 The success of Frankfurt Airport along with Reliability 12 the company’s expertise at this site form the Commitment 16 Openness 20 basis for the further development of our Courage 24 increasingly important international sites and Trust 28 investments. Whether it comes to digitali Highlights 2018 32 zation, globalization, or climate change: we Our Group 36 develop forward-looking concepts to meet Responsibility 44 Our program 50 increasingly complex requirements. As a service-oriented provider, we focus on our Our areas of activity Governance 58 customers without exception. And we Economic enhancement 70 Employees 82 make a promise: Community 88 Environment 96

Fraport international 104 Fraport USA 106 Fraport Brasil 108 Fraport Slovenija 110 Gute Reise! Fraport Regional Airports of Greece 112 Lima Airport Partners 114 We make it Fraport Twin Star 116 Key Figures 118 About This Report 125 happen Imprint 126 4 Foreword Sustainability Report 2018

Foreword

Dear Reader, more passengers can be checked per hour than with conven tional checkpoint lanes. With the extension of Terminal 1 in 2018 was an exceptional year for air transport in Europe in Area A, we will also create up to seven new checkpoint lanes, every respect. We welcomed more than 69.5 million passengers which will already commence operation in summer 2019. to Frankfurt Airport, an increase of over five million travelers or 7.8 percent compared to the previous year. This significant In what has been the year with our highest rate of traffic thus far, growth underscores the appeal of our home location. Yet it also our employees have had to perform above and beyond the involved some challenges: in particular, long waiting times at norm; especially workers in the operational areas were impacted the security checkpoints in Frankfurt and other major airports in by this. The number of passengers exceeded the 200,000 mark Germany caused stress among passengers from all over the at Frankfurt Airport on 165 days. We are well positioned for world. The number of late and canceled flights has also risen 2019. We welcomed more than 3,000 new colleagues in Frankfurt sharply across Europe due to the high utilization of air space. All alone last year. And all forecasts indicate that the growth in stakeholders agree that we need common solutions to improve passenger numbers is set to continue this year, albeit not as reliability and punctuality in air traffic again. Airports, airlines, air strongly as in 2018. traffic control, official bodies, and politicians are working on this. The enormous passenger demand once again underlines the For us, the satisfaction of our customers is the top priority. importance of capital expenditure on airports as a key compo This is why we initiated a range of measures last year. Additional nent of public infrastructure. Progress is being made with the staff were hired in the security division and we will continue to construction of Terminal 3 and its three piers, G, H, and J, in the strengthen our resources this year. The German Federal Police south of the airport. Pier G is expected to be available for the are testing more efficient checkpoints in order to increase effi 2021 winter flight schedule, while the other Terminal 3 piers will ciency. The initial results from the tests are positive: Significantly follow from the end of 2023. Sustainability Report 2018 Foreword 5

Michael Müller Anke Giesen Dr. Stefan Schulte Dr. Matthias Zieschang Executive Director Executive Director Chairman of the Executive Director Controlling Labor Relations Operations Executive Board and Finance

Sustainability and value are parameters that also apply to corporate culture and contribute to achieving our goals. This is our work beyond the Frankfurt site. Almost all of our airports why we have focused on them in the current sustainability report. achieved record levels of passenger numbers last year. Due Starting on page 8, you will find examples of how we imple to the consistently positive development, the International ment these values every day. Activities and Services segment is the largest single segment in terms of operating earnings (EBITDA) for the first time in the We hope you, dear readers, will find this report interesting and history of the Fraport Group. This shows that our strategy of informative, and we look forward to hearing your responses. continuously developing the international portfolio and gener ating stable long-term returns is proving to be successful.

In line with the positive Group-wide development of passenger numbers, the 2018 fiscal year was also a financial success for Fraport. We have achieved all our targets and, at a Group level, your company generated EBITDA of 1,129 million Euros and Dr. Stefan Schulte Anke Giesen EBIT of around 731 million Euros. The Group result amounted to nearly 506 million Euros.

At this point we would like to express our sincere thanks to our employees across the entire Group. It is due to their daily commitment that we have achieved such an outstanding result despite the challenges we face. The six Fraport values from our mission statement reflect precisely that. They shape our Michael Müller Dr. Matthias Zieschang 6 Our values Sustainability Report 2018

Our values

Competence Reliability Commitment

We rely on our We do business reliably. We are efficient. extensive skills We are dependable. We show commitment. and abilities. We work cooperatively. We stand together in times of crisis. We combine experience and know-how.

We stand for high quality.

Openness Courage Trust

We work and We make decisions. We rely on our values. communicate with transparency. We take responsibility. We treat each other We listen to criticism. with respect. We are steadfast. We are open to new ideas. We recognize the skills and values of others. Sustainability Report 2018 Our values 7 8 Our values Sustainability Report 2018

Competence … Sustainability Report 2018 Our values 9

… means safely transporting highly sensitive pharma ceutical drugs from A to B. 10 Our values Sustainability Report 2018

Frankfurt is Europe’s largest cargo airport and, at the same time, the largest trading hub for particularly sensitive goods: pharmaceutical drugs. At Frankfurt Airport, Fraport provides special temperature- controlled handling spaces, among other things, in addition to its competence.

nnually Fraport employees Time-sensitive and temperature-sensitive handled about 100,000 tons goods such as medicines are in good of vaccines, medicines, and hands with us – we also make sure that other pharmaceutical products. they have a “gute Reise”. This is con This sensitive cargo requires firmed by the International Air Transport particularly reliable and profes Association (IATA), which awarded our sional handling. Based on freight department with the “CEIV phar Atheir experience and expertise, our maceutical certificate” in 2018. This employees also ensure that the products makes Frankfurt one of the largest airports always reach the aircraft at their ideal in the world with a fully certified pharma temperature, even during transport on ceutical process. the apron, by using special thermally insulated transport containers. To ensure A particularly safe and reliable transport this, the containers cover a range of process is part of the daily work required temperatures from – 20 to +30 degrees of us, not just when it comes to pharma Celsius. The goods are then loaded into ceutical drugs. Our competence can be the pre-tempered cargo compartment of seen in tailor-made logistics and a the aircraft. well-trained workforce with a modern Sustainability Report 2018 Our values 11

infrastructure. Not only in Frankfurt but shows the growing travel demand across also at many other airports around the society in 2018. At Group sites, in part world. Whether it comes to express double-digit growth in passenger traffic cargo, refrigerated items, airmail, live was recorded. We are responding to this Fraport employees handled animals, dangerous goods, or sensitive trend by expanding our airports. With pharmaceutical drugs, everything is in extensive construction at the majority of good hands. our sites around the world, we are mak ing Fraport viable for the long term. The 100,000 Cargo is not the only area in which completed projects at Frankfurt Airport, Fraport demonstrates its competence. such as the Pier A-plus and the Runway metric tons of pharmaceutical As a reliable partner, we are known for Northwest, are testimony to our expertise products annually our outstanding services in all sectors of in infrastructure developments. With airport operations. A safe and pleasant Terminal 3 in Frankfurt, we are also man travel process is part of our daily goal. aging the largest construction site in Passengers from all over the world feel Europe. Carriers, airlines, passengers, and at home at our airports and look forward shop owners: all customers benefit from to coming back. Last but not least, the our expertise, and their satisfaction is the strong increase in passenger numbers most important benchmark for this.

Fraport completed the Runway Northwest at Frankfurt Airport on schedule, which will relieve the parallel runway system in the center of the airport.

Air conditioned containers allow for the safe transfer of sensitive medicines to the aircraft. 12 Our values Sustainability Report 2018

Reliability … Sustainability Report 2018 Our values 13

… means every thing arrives where it belongs. 14 Our values Sustainability Report 2018

Our employees in Ground Services ensure the smooth loading and unloading of aircraft behind the scenes. They guarantee that the baggage arrives where it belongs, on peak days they process up to 110,000 pieces of luggage per day. Their most important support tool in this process is the baggage handling system.

ne of the main arteries at customers, both airlines and passengers, Frankfurt Airport, the must be able to rely on every aspect of efficient system has a our services. At Fraport, there is a lot we total length of more than are doing to ensure this. 80 kilometers with a reliability rate of 98 per For us it is clear that reliability is ensured Ocent, which is the best in the world. by effectively combining several import Fraport mechanics are responsible for ant factors. Human skills and commit ensuring that the system runs like a ment are the first basic requirement. We “fine-tuned” machine at all times. Main appreciate the work performed by our tenance, repair, replacement of parts, employees and know that their expertise, extension activities – all of this occurs experience, and commitment are crucial while the system is in operation. Reliabili to our business success. An additional ty at Fraport has many faces: This can aspect is the technical equipment. We are be seen in baggage handling but also in well set up in all areas, particularly in general in punctuality, effective security baggage handling. standards, and regulated processes. Our Sustainability Report 2018 Our values 15

Up to 110,000 pieces of luggage per day are fed into the baggage transfer system by Fraport employees.

Consistent processes are another pre requisite for reliability. For this reason, we maintain close and continuous contact with our partners at various company sites: airlines, service providers, and authorities. Our approach is to continuously take a critical look at existing procedures, to be open to new ideas, and to search for new ways to achieve best possible results.

This is particularly true when the chal lenges are constantly increasing, as is the The regular exchange case at some of our Group sites. We of information with the therefore continuously invest in existing airlines ensures reliable facilities and work to gradually expand processes on the apron. them. With Terminal 3, the largest in the southern part of Frankfurt Airport privately financed infrastructure develop in the coming years. Up to 21 million ment project in Europe will be carried out passengers will arrive at or depart from this terminal beginning in 2023. We are also extending the infrastructure in Lima and at some of the Greek airports. As you can see, passengers will continue to be With a reliability rate able to rely on us in the future. of 98.4%, the baggage transfer system at FRA is one of a kind in the world. 16 Our values Sustainability Report 2018

Commitment … Sustainability Report 2018 Our values 17 … means everyone working together no matter what the situation calls for. 18 Our values Sustainability Report 2018

A large aviation hub like Frankfurt Airport always requires strong commitment from its operator. Fraport employees embody this commitment, day and night, summer and winter. The goal is maintaining smooth flight operations or to put it simply: it’s all about commitment.

Fraport employees at the Frankfurt site Whenever all gates are worked nearly 20,000 additional shifts. occupied, our Fraport There were also over 150 workers in employees are working administration who helped out, in partic at full speed in the ular by working at the security checks terminals and on the making sure the trays were returned to apron. the front of the line. Because this is also a part of Fraport: we all stick together in he year of 2018 was a record difficult times. year for Fraport, with corre sponding challenges especially Fraport employees not only show special in the spring and summer. With motivation during the summer peak. In 69.5 million passengers, the the Care Team, volunteers from all sectors busiest twelve-month period in help to work through emergency or Tthe history of the Frankfurt Airport has special situations. These may be, for demanded a lot, above all from the example, strikes or days with flight can employees in the operational areas. The cellations due to weather. The Care Team number of passengers exceeded the interacts with passengers, greeters, and 200,000 mark on 165 days. Fraport has relatives on site or takes care of the responded to the unexpectedly strong emergency information center to handle growth by stepping up recruitment, but, telephone inquiries. In courses and as we know, it takes time before new workshops, members learn how to deal employees are hired and trained for the with emotional stress situations. They are relevant areas. Which is why we say: All regularly prepared on the reality of sce hands on deck! From May to August, narios by role playing them with actors. Sustainability Report 2018 Our values 19

The pink vest indicates a special situation in the terminal. The Care Team goes to work.

A commitment beyond ordinary limits is also needed on days with a lot of snow. The primary objective is removing snow from the apron as well as the takeoff and landing runways. Aircraft can only safely No aircraft may take off take off and land if the surfaces have been as long as there is snow cleared and treated. To ensure this, on the runways. Fraport launches its “great winter service”. Employees from different operational areas drive large winter service vehicles at From May to August, the airport to remove snow. Volunteer Fraport employees worked staff and employees from administration have also assisted in this area for several years. Working as shift workers on the apron, they come into contact with the 20,000 rougher side of airport operations. They support the core team on a day-to-day basis, while their colleagues in the office additional shifts at the complete the usual administration tasks. Frankfurt site.

Regardless of where special effort is required, in crisis situations it becomes especially clear that Fraport employees are pulling together to help out “their” airport. 20 Our values Sustainability Report 2018

Openness … Sustainability Report 2018 Our values 21

… means giving everyone a chance. 22 Our values Sustainability Report 2018

Frankfurt Airport is more than just an infrastructure facility; it is more than just an aviation hub. It is primarily a meeting place: open to everyone and open to opportunities.

or some young people, Openness also means equal opportunities their grades in school do not at Fraport. Of course, every employee always reflect the level of must have the qualification required to their technical skills and com perform a specific job professionally. How mitment. This often makes ever, there are other matters that should Fit difficult for them to enter the work not be omitted as far as we are con force. Every year, twelve of them have cerned. Therefore, we are open to career the opportunity to demonstrate their paths that deviate from the norm when skills and commitment in our professional selecting apprentices and employees. preparation program “Ready for Takeoff”. Whoever shows strong development can Outside the company, there are many qualify for an apprenticeship, for exam areas that call for a certain level of open ple, as an electromechanical engineer, ness from Fraport. At Frankfurt Airport, a where they learn to perform maintenance diverse crowd of all walks of life crosses on elevators and repair escalators. paths every day to form a unique snapshot. Sustainability Report 2018 Our values 23

Over 80 different nationalities are represented at Fraport alone.

Good cooperation also calls for being open to new ideas.

Respect and open communication are particularly valuable at security checkpoints. Some are traveling, while others work Openness is a key part of this. They all here, and still others are visiting the pull together in pursuit of the same goal. airport to enjoy the international flair in It is completely irrelevant what type of the terminals, where cultures, religions, training each individual has completed, and nationalities meet. what specific task they perform, where they come from, what they believe, what Of course, a part of this lively mix are interests them in their spare time, or how those who earn their money here. they live. At Frankfurt Airport, people They work for the Fraport Group, an meet eye to eye with mutual respect. And airline, or at one of the approximately this is precisely why openness at the 500 other companies at the airport. Fraport Group is invaluable, at the home Over 80 different nationalities are repre site as well as at our Group companies all sented at Fraport, spanning a wide over the world. range of professions and daily tasks. And despite or precisely because of this, all of these people are part of a large family. Everyone in the Airport Community contributes to ensure that Frankfurt Airport runs smoothly. 24 Our values Sustainability Report 2018

Courage … Sustainability Report 2018 Our values 25

… means overcoming obstacles. 26 Our values Sustainability Report 2018

Decisions must be made every day at Frankfurt Airport and our other airports around the world. Sometimes, we have to look at the bigger picture; for example, when we took part in the tender for airport concessions in Greece five years ago.

n November 25, 2014, considerable growth potential despite there was a sponta their poor condition in many areas. neous cause for cele bration on the fifth At first, there was a lot of criticism in floor of our headquar Greece about the granting of conces ters at Frankfurt Airport: sions. But we stayed the course and it is OFraport won the tender for concessions now undisputed that the airports have for the operation of 14 Greek regional benefited from the new management. airports. The consortium led by us pre Fraport created a new Group company, vailed in a bidding process with a con Fraport Greece, with headquarters in vincing offer, winning the tender against Athens to manage the operations of the strong international competition. The 14 sites. Around 600 employees have awarding of the tender caused a great been hired thus far, and this number amount of joy, since the airports offer will continue to grow in the future. Sustainability Report 2018 Our values 27

Employees on site and at the corporate headquarters in Frankfurt mutually benefit from the regular exchange of ideas and information. One colleague has transferred from Athens to Frankfurt, contributing her experience in managing international Group companies.

The benefits from the capital expenditure in and the improved management of the Greek airports could be seen in 2018: around 29.9 million passengers (+8.9%) chose an airport operated by Fraport as their destination. Overall, the capital expenditure over the first four years is expected to be around €400 million for all sites. Most of this will be spent on a comprehensive expansion and extension project. The project will include the construction of five new terminals, while five current buildings will be expanded and four will be modernized. Another area of priority is expanding the offer of Samos, Kos, and many shopping and services. The measures more – Fraport Greece were completed in January 2019 at the is responsible for a airports in Chania, Zakynthos, and total of 14 airports. Kavala. After the ground-breaking cere mony in September 2018, the new 29.9 million Terminal in Thessaloniki is now under construction. It is scheduled to open at into an integrated management system the beginning of 2021. according to ISO standards. The eco passengers chose one logical footprint of the 14 airports also of the Greek airports Fraport’s responsibility for operating the remains an important issue. CO2 emis 14 airports does not stop with the many sions are calculated by Fraport Greece operated by us as their expansion projects. Fraport Greece has according to international guidelines and destination. also implemented a number of new are included in the Group’s reporting. operational processes with the goal of All this shows that the company is fulfilling improving the quality of service. Occupa its entrepreneurial and social responsi tional safety and health management bility just two years after the take-over systems for employees were incorporated of operations.

In September 2018, a symbolic ground- breaking ceremony officially marked the expansion of Thessaloniki Airport. 28 Our values Sustainability Report 2018

Trust … Sustainability Report 2018 Our values 29

… means being aware of our own strengths. A masterpiece of organization as well as cooperation based on trust.

Frankfurt Airport is a hub used by passengers of all ages and from around the world, frequent flyers and occasional travelers, those with and without a disability. They all have one thing in common: they trust that everything runs smoothly at Fraport.

n a lot of other cases, we must who would prefer not to travel alone. first gain their trust: passengers Their work begins with a friendly greet who rarely travel or perhaps are ing of departing guests at the terminal flying or travelling alone for entrance or at the arrival hall. They take the first time, or passengers who care of the passenger’s luggage, accom do not know our culture and pany them through the airport and pro Ilanguage, and older and disabled travel vide assistance with all formalities that ers. They all need a little bit more may need to be taken care of. These attention and practical support and a include check-in and baggage drop-off friendly person who takes care of them. as well as security and passport control. Frankfurt Airport offers customized Along the way, they chat with the products and services that make travel passengers entrusted to them in German, more pleasant for these passengers. English, and most often in two other languages, providing them with a positive Our Airport Guides know the airport feeling the entire time until dropping inside out. They take care of passengers them off at their departure gate. Sustainability Report 2018 Our values 31

As an airport operator, Fraport’s top priority is the safety and well-being of our passengers.

A kind word and some information can be very helpful in the bustling terminal.

At Frankfurt Airport, we not only have to gain the trust of passengers in need of assistance. For many of our guests, flying is a matter of course day in, day out. They are familiar with the procedures, and these do not present them with any great challenges. These passengers appreciate our expertise, experience, and commit ment. At the same time, they rely, just as we do, on the fact that everything runs smoothly both out in the open and behind the scenes at Germany’s largest air traffic hub.

As an airport operator, Fraport’s top priority is the safety and well-being of our passengers. We respond to their individual needs in order to ensure their stay at the airport is a positive experience, enabling them to have a “gute Reise”. We are aware that our guests continually place an immense degree of trust in us, Passengers with and we seek to show that we are worthy reduced mobility are in of their trust every day. good hands with the employees of FraCareS. 32 Highlights 2018 Sustainability Report 2018

Highlights 2018

Apr

CEIV Pharma certificate of expertise in the ramp handling of pharmaceutical goods

The airline association IATA has awarded Fraport AG the CEIV Pharma certificate. This makes Frankfurt the largest airport in the world with a fully certified pharma ceutical process. The CEIV (Center of Excellence for Independent Validators in Pharmaceutical Logistics) international classification confirms the reliable han dling of time-sensitive and temperature- sensitive goods.

Jan Mar Lease agreement concluded with Swissport in CargoCity South

Fraport AG signed a long-term lease with Fraport Brasil takes over operations of Large-scale recruitment campaign Swissport on a property in CargoCity South the Brazilian airports in Fortaleza and in the Rhine-Main region at Frankfurt Airport. Swissport Interna Porto Alegre tional Ltd. is the global leader in Ground The increasing number of passengers Handling and with operations of 133 air Fraport Brasil takes over operations of as well as additional offers by new airlines cargo warehouses across the globe is the two Brazilian airports, “Pinto Martins” and for new destinations led to over one of the world’s largest cargo-handling in Fortaleza and “Salgado Filho” in Porto 1,800 workers being hired at Frankfurt companies. At Frankfurt Airport, an air Alegre. The two concession companies Airport. Taking into consideration the cargo hall of over 16,000 m² (approx. are subsidiaries that are wholly owned by tight labor market, Fraport started a 172,000 ft²) featuring roughly 2,260 m² Fraport AG. diversified recruiting campaign to meet (approx. 24,300 ft²) of office and social the need for manpower. space will be built. Sustainability Report 2018 Highlights 2018 33

May Jun

Group-wide climate protection Use of drones tested at Ceremony to commemorate the goals set Frankfurt Airport 70th anniversary of the Berlin Airlift at Frankfurt Airport As part of its climate protection efforts, Working with TPI Vermessungsgesellschaft Fraport AG has set Group-wide reduction mbH, the drone manufacturer Multirotor 2018 marks the 70th anniversary of the targets for the first time, and these also and in cooperation with German air traffic start of the Berlin Airlift. The ceremony at apply beyond the Frankfurt site. It also control, Fraport AG conducted successful the Airlift Memorial on the grounds of plans to halve CO2 emissions at the fully drone test flights in June. The objective of Frankfurt Airport was an expression of the consolidated Group companies down to the project, called FraDrones, is to test great appreciation for the outstanding

125,000 tons of CO2 by 2030. In 2017, different scenarios for the operational use humanitarian efforts of the Allies during the corresponding emissions amounted of drones. The initial test focused on the Berlin blockade. The pilots of the to 209,668 tons of CO2. surveying construction projects and moni “candy bombers” who lost their lives in toring their progress. this historic mission were honored in a wreath-laying ceremony. The anniversary Dividend of €1.50 per share ceremony was attended by the Prime Minister of Hesse Volker Bouffier, the At the 17th Annual General Meeting of Mayor of the City of Frankfurt Uwe Becker, Fraport AG, the shareholders approved the Ambassador of the United States in the proposed dividend of €1.50 per share. Germany Richard Grenell, the Ambassa The approval rate was 99.97%. The divi dor of France Anne-Marie Descôtes, and dend per share thus remained at the level the Deputy Ambassador of the United of the previous year. The shareholders Kingdom Robbie Bulloch. approved the actions of the Executive Board (99.64% approval rate) and the Supervisory Board (97.14% approval rate) for the 2017 fiscal year. 34 Highlights 2018 Sustainability Report 2018

Aug Sept

Planning permission for Pier G Shares in Hanover Airport sold Start of training programs at Frankfurt Airport The planning commission of the City of Fraport AG sells its shares in Flughafen Frankfurt am Main issued planning permis Hannover-Langenhagen GmbH (FHLG) to 123 new recruits between the ages of sion to Fraport AG for Pier G. By moving iCON Flughafen GmbH. The price for 30% 16 and 34 began their career paths. The up the schedule for the construction of of the shares in FHLG is €109.2 million. 89 male and 34 female trainees started the new pier, the airport operator is respond a vocational training or dual course of ing to passenger growth. Pier G will be study at Fraport AG. The new Fraport completed with an initial capacity of 4 to Electromobility expanded at employees are from 15 different countries 5 million passengers by the end of 2021. Frankfurt Airport and have ten different nationalities.

Fraport AG is expanding the fleet of Fraport USA awarded tender for center electric vehicles at Frankfurt Airport. Ground-breaking ceremony for the management at Nashville Airport Currently, 14% of all vehicles already new terminal in Thessaloniki have an electric drive, and this number is The Metropolitan Nashville Airport Author growing continuously. In 2018, twelve A symbolic ground-breaking ceremony ity awarded Fraport USA the contract for electric baggage and cargo tugs run on officially marked the expansion of the management and further develop batteries alone, two electric passenger Thessaloniki Airport. At the ceremony, ment of the concession areas at Nashville stairs and 15 electric pallet lifters were Fraport Greece presented its concept International Airport (Tennessee). In the put into operation. Five electric conveyor for modern look and feel of the airport future, Fraport USA will also expand and belt cars as well as four ground power in Greece’s second-largest city. The enhance the shopping and restaurant units run on batteries were added. most important element is the new offers for the over 14 million passengers terminal building, which is to be con per year at Nashville Airport. structed over the next two years on an area of over 34,000 m² (roughly 8.4 acres). The Fraport Group company will invest around €100 million in the Thessaloniki Airport. Sustainability Report 2018 Highlights 2018 35

Dec

Lufthansa and Fraport continue their cooperation in aircraft handling

Deutsche Lufthansa AG commissioned Ground Services of Fraport AG with the handling of all Lufthansa aircraft at the Frankfurt site for an additional seven years. The contract entered into effect on January 1, 2019 and will end on March 31, 2026. Ground Services of Fraport AG Oct Nov takes over the loading and unloading of Lufthansa passenger aircraft, baggage and cargo transport, the bus transfer of passengers as well as pushback, supply, Fraport and Lufthansa test remote- Fraport remains a premium partner and disposal services. controlled aircraft tow tractors of Eintracht Frankfurt

The electrically powered vehicle manufac Eintracht Frankfurt Fußball AG and the tured by Mototok International is put into airport operator Fraport continue their operation for several months by Fraport cooperative relationship by renewing the Ground Services at Frankfurt Airport. As a expiring contract. Fraport AG will serve test partner, Lufthansa provides aircraft for an additional three years as a premium the pushback in which the e-tractor pushes partner beginning on July 1, 2019. the plane from the park position onto the runway. The so-called “Mototok Spacer 8600” can be used for the entire A320 and Boeing 737 fleets. An employee of Fraport Ground Services operates the tow tractor by remote control. 36 Our Group Sustainability Report 2018

Our Group

Fraport AG (formerly: Flughafen Frankfurt/Main AG) has a long tradition as an aviation service provider. Founded in 1924 under the name “Südwest- deutsche Luftverkehrs AG”, the company operated the old Frankfurt airport on the Rebstock grounds. In 1936, the core of today’s airport located at the Frankfurter Kreuz took up operations. Sustainability Report 2018 Our Group 37

From Frankfurt to the world

Fraport Group (hereinafter also referred which has more than 23.300 1) employ- companies respectively integrated in to as: Fraport) is among the leading ees. It directly or indirectly holds the each of these business processes. In global airport groups with its interna- shares in the other Group companies and addition, ten central units of Fraport AG tional portfolio. Fraport provides all its head office is in Frankfurt am Main. in Frankfurt provide services, among operational and administrative services other things, across the entire Group. for airport and terminal operation as The Fraport Group is divided into four well as other associated services. The segments: Aviation, Retail & Real Estate, Germany – almost exclusively Frankfurt range of services also includes planning Ground Handling, and International Airport – was once again the most and consulting services. Passenger Activities & Services. The main site is important site of the Fraport Group in traffic, which impacts on a majority of Frankfurt Airport, one of the biggest the past fiscal year with a share of 61.5% the services the Group provides, is key passenger and cargo airports in the in the Group result (2017: 66.0%). The to the Group’s revenue and earnings world. Fraport AG Airport Services share of the USA site rose compared with performance. Worldwide (hereinafter: Fraport AG) is the previous year to 0.2% (2017: nega- the owner of the Frankfurt Airport. tive result). The earnings contribution In contrast to time-limited airport oper- Fraport’s strength lies in integrated from the Brazil site (2.9%) was added in ating models, the Fraport Group parent airport management, which guaran- 2018. Based on the strong development company, Fraport AG, wholly owns and tees comprehensive know-how in all of passenger volume in the 2018 fiscal operates Frankfurt Airport with no time airport services. year, the Turkey site recorded a contribu- limits. With around 10.600 1) employees, tion of 9.0% (2017: 4.3%). The contribu- Fraport AG, which has been stock The segments encompass the strategic tion to earnings from the Greece site exchange-listed since 2001, is also the business units and service units of decreased due to the first full-year recog- biggest single company of the Group, Fraport AG and also include the Group nition of interest expenses (2017: 3.7%).

Segment structure

Fraport Group

International Activities & Segments 2) Aviation Retail & Real Estate Ground Handling Services

Directly Airside and Retail and Properties Ground Services Global Investments and assigned Terminal Management, Management strategic Corporate Safety and Security business Integrated Facility Management units and service Information and units of Telecommunication Fraport AG Airport Expansion South

Corporate Infrastructure Management

1) As at the balance sheet date on December 31, 2018. 2) Including assigned Group companies. 38 Our Group Sustainability Report 2018

Share in the Group result by site before consolidation 1)

in %

2.7 1.7 China Slovenia

2.9 0.4 Brazil Greece 5.4 0.2 Bulgaria USA 9.0 Turkey 16.2 61.5 Peru Germany

1) Group result adjusted for the disposal of the shares in Flughafen-Langenhagen GmbH valued at €75.9 million.

Organization

Fraport AG is a publicly listed corporation The Supervisory Board appoints the General Meeting takes place in the first registered in Germany. As such, its man Executive Board and controls the latter’s six months of each fiscal year and makes agement and control are divided into activities. It exists under German law and, decisions on all tasks assigned to it by law three independent bodies. As a manage as a result of the size of the parent com and the Group’s articles of association, ment body, the Executive Board bears the pany, comprises 20 members who are such as appropriation of profit, election strategic and operational responsibility for appointed or elected by shareholders and and discharge of the Supervisory Board, the Group. At the end of 2018, it com company employees in equal numbers. and discharge of the Executive Board. prised four members, Dr. Stefan Schulte Each share grants one voting right. (Chairman), Anke Giesen (Executive As an additional decision-making and Director Operations), Michael Müller control body, Fraport AG’s shareholders (Executive Director Labor Relations), and exercise their participation and voting Dr. Matthias Zieschang (Executive Direc rights in the company at the Annual tor Controlling and Finance). General Meeting. The ordinary Annual

Shareholder structure as at December 31, 2018 1)

in %

32.04 Free Float

3.03 BlackRock Inc. 31.31 State of Hesse 5.02 Lazard Asset Management LLC 20.16 Stadtwerke Frankfurt am Main 8.44 Holding GmbH Deutsche Lufthansa AG

1) The relative ownership interests were adjusted to the current total number of shares as at December 31, 2018 and therefore may differ from the figures given at the time of reporting or from the respective shareholders’ own disclosure. Shares below 3% are classified under “Free Float”. Sustainability Report 2018 Our Group 39

Group mission statement

The changing conditions in global aviation at all our sites which stands out from the –– Growth in Frankfurt and internationally influence the entire air aviation sector. competition through its quality as well as –– Service-oriented airport operator Price wars between airlines as well as attractive pricing. As a result of this offer –– Economically successful through optimal passengers’ price-conscious travel behavior ing in Frankfurt and throughout the world, cooperation are leading to more competition among possibilities have been created to meet the –– Learning organization & digitalization airports. In order to compete in this mobility needs of society and to strength –– Fairness and recognition for partners dynamic environment, Fraport has to offer en the economic power of the regions and neighbors an excellent product to a range of custom concerned. er groups at Frankfurt Airport. Our values of competence, commitment, The vision of establishing Fraport as openness, reliability, courage, and trust With the slogan “Gute Reise! We make it Europe’s top airport operator and also to are the core values of our corporate happen”, the mission statement of the set global standards forms the basis of the culture and show how we will be able to entire company defines the necessary mission statement. The five strategic goals achieve our goals. focus on our customers. We offer our of the mission statement lay out what we customers a platform for their businesses want to achieve in concrete terms: 40 Our Group Sustainability Report 2018

Strategic challenges and program structure

Strategic challenges Strategic programs Group objectives

To successfully manage airport operations – Manage growth Growth in Frankfurt and internationally during rapid traffic growth and capacity constraints

To increase competitiveness and productivity at FRA – Future competitiveness Economically successful through optimal cooperation also through process automation and digitization of FRA Learning organization & digitalization

To be the employer of tomorrow – by offering future-oriented Learning organization & digitalization Workplace of the future personnel policy, leadership and cultural change Fairness and recognition for partners and neighbors

To be the preferred partner for our customers – Service-oriented airport operator Market-oriented B2B offering by offering the best support for their business activities Learning organization & digitalization

To provide the best travel experience for passengers – by creating Passenger experience Service-oriented airport operator desired offers that make the stay at the airport more pleasant at FRA Learning organization & digitalization Developing infrastructure Developing infrastructure in line with demand – Growth in Frankfurt and internationally sustainably and in line securing long-term business success with demand Service-oriented airport operator

Economically successful through optimal cooperation To make an appropriate contribution to climate protection – Optimizing CO2 emissions continuously reducing CO2 emissions and energy efficiency Fairness and recognition for partners and neighbors

Strategy

In the 2018 fiscal year, Fraport continued Fraport continues to guide its strategy by airlines has the effect of promoting with the implementation of its Group the long-term forecasted development of growth. Disproportionate growth is still strategy developed based on the mission the global aviation market and its market expected from and in the economic statement implemented in 2015/2016. trends. Here, renowned aviation associa- emerging markets. In order to ensure the strategic objec- tions and aircraft manufacturers expect tives of this mission statement are long-term stable growth of the aviation In an intense competitive environment, achieved and react to changing market market. This is derived, in particular, from the quality of the service as well as provi- conditions with even more focus, seven projected global economic growth and ding reliable and fast processes are increa- strategic challenges were formulated the continuing global expansion of the singly gaining importance. For Fraport, within the scope of the 2018 strategy middle class, which consumes more. a factor critical to success is therefore to process. The strategic programs present- Supporting effects continue to result from offer excellent products to the various ed below have been intensified to the continuing internationalization of customer groups. The claim “Gute Reise! identify the defined challenges and labor and education. Increasing traffic is We make it happen” in the mission state- corresponding Group targets. also forecasted from migration and tou- ment places the necessary focus of the rism. The intense competition between entire Group on our customers.

Middle class Migr on Globaliz onTourism

>50% growth expecta on Migr on will boost Int onaliz on of Robust trend towards within next 20 years ethnic traﬃ c on city and short trips

Forecast for the long-term development of global air traﬃ c underline growth expecta on

Source Period ReferenceCAGR

Airbus un l 2037 Revenue passenger kilometers +4.4%

Boeing un l 2037 Revenue passenger kilometers +4.7%

Embraer un l 2037 Revenue passenger kilometers +4.5%

ACIu l 2040 Number of passengers +4.0% Sustainability Report 2018 Our Group 41

Key business fields in the value generation chain

Input Business model – Fraport Group worldwide Contribution

–– Financial resources Passengers B2C Generating value –– Human resources Passenger Services | VIP Services | Parking –– Customer satisfaction and –– Environmental resources product quality –– Business –– Economic efficiency resources (license –– Growth and to operate and grow, development in the Group external infrastructure) Airlines B2B Tenants & concessionaires Airport B2B Management & –– Ideas and innovation –– Goods –– Airside operations competence and services –– Attractive and responsible –– Terminal operations –– Property operations B2B & B2G employer –– Intellectual capital and marketing –– Value generation and –– Security ground services (incl. conferencing) –– Management contracts engagement in the regions –– Passage and check-in –– Concessions for –– Consulting Responsible corporate –– Freight handling retail & gastronomy –– Airport governance –– General Aviation –– Advertising inaugurations (partial) Limit effects

–– Corporate Governance and –– Noise abatement Compliance –– Occupational health and –– Data protection safety –– IT and Airport Security IT Services | Maintenance and Repairs –– Climate protection Cleaning | Canteen –– Environment and nature conservation –– Air quality

After analysis of the value chain in our to strengthen the positive effect of the business model, the topics can be allo areas of activity and how our company cated to two clusters in the materiality responds to negative effects, see the matrix. Fraport differentiates between short report in our sustainability program value-adding topics and topics that we (starting on page 50) and the extensive are working on to limit the impact of our version in the texts on these topics in business activities. For more information this report. on the measures Fraport is implementing 42 Our Group Sustainability Report 2018

Group airports

(with an interest of more than 10%)

Frankfurt am Main Fortaleza Ljubljana

Name Frankfurt Airport Name Aeroporto Internacional de Fortaleza Name Ljubljana Jože Pucnik Airport Company Fraport AG Company Fraport Brasil S. A. Company Fraport Slovenija, d.o.o. Type Group headquarters Aeroporto Fortaleza 1) Type Group company Shares 100% Type Concession until 2047 Shares 100% Employees 10,595 Shares 100% Employees 483 Passengers 69.5 million Employees 147 Passengers 1.8 million Cargo (air freight + air mail) 2.2 million metric tons Passengers 6.6 million Cargo (air freight + air mail) 12,400 metric tons Movements 512,000 Cargo (air freight + air mail) 46,000 metric tons Movements 35,500 Movements 58,300

Lima Burgas/Varna Antalya

Name Aeropuerto Internacional Jorge Chávez Name Burgas Airport/Varna Airport Name Antalya Airport Company Lima Airport Partners S.R.L. Company Fraport Twin Star Airport Company Fraport TAV Antalya Airports Type Concession until at least 2041 Management A.D. Type Concession until 2024 Share 70.01% Type Concession until 2041 Shares 51% Employees 562 3) Shares 60% Employees 431 3) Passengers 22.1 million Employees 689 Passengers 32.3 million Cargo (air freight + air mail) 285,600 metric tons Passengers 5.6 million Cargo (air freight + air mail) n/a Movements 192,700 Cargo (air freight + air mail) 8,600 metric tons Movements 188,600 Movements 41,100 Sustainability Report 2018 Our Group 43

Greek regional airports Porto Alegre (example: Thessaloniki)

Name Aeroporto Internacional de Porto Alegre Company Fraport Greece 2) Company Fraport Brasil S. A. Type Concession until 2056 Aeroporto Porto Alegre 1) Shares 73.4% Type Concession until 2042 Employees 626 Shares 100% Passengers 29.9 million Employees 237 Cargo (air freight + air mail) 8,200 metric tons Passengers 8.3 million Movements 244,200 Cargo (air freight + air mail) 40,000 metric tons Movements 81,000

St. Petersburg Xi’an

Name Pulkovo Airport Name Xi’an Xianyang International Airport Company Northern Capital Gateway LLC Company Xi’an Xianyang Type Concession until 2040 International Airport Co. Shares 25% Type Group company Employees 4,339 3) Shares 24.5% Passengers 18.1 million Employees 4,275 3) Cargo (air freight + air mail) n/a Passengers 44.7 million Movements 165,400 Cargo (air freight + air mail) 312,600 metric tons Movements 329,800

1) Take-over of operations on January 2, 2018. 2) Take-over of operations on April 11, 2017. 3) Including joint ventures. 44 Our Group Sustainability Report 2018

Responsibility

For us, sustainable action means creating the case of Frankfurt Airport, which is one analysts, property owners, as well as civil the future responsibly. We understand of the largest hubs in Europe. As an oper society, political, and government repre sustainable development to be a continu ator, Fraport AG is caught between very sentatives. Special attention is given to ous process. We are convinced that the different demands. airport employees and neighbors affected company’s scope of action can only be by aircraft noise, especially at our Frank secured by consistently including What is most important to many of our furt site. At Frankfurt Airport alone, the non-economic aspects in management stakeholders is the worldwide shipment largest workplace in Germany, there are processes. of their products as well as business or around 81,000 employees. In this regard, private travel needs. Other stakeholders we bear direct responsibility for Fraport The topic of sustainability or responsibility are concerned with issues surrounding employees in particular. The Fraport falls under the remit of the central unit the Group’s financial value creation and Group also maintains close contact with “Corporate Development, Environment, its competitiveness, as well as maintaining its main customers – airline companies – and Sustainability”, which is assigned to and creating secure, attractive jobs. to strengthen each site and further devel the Chairman of the Executive Board. The Global challenges such as climate change op the quality of service based on trust unit brings together the strategically are also seen as a relevant issue by some worthy collaboration. relevant themes relating to responsible stakeholders. Noise from airplanes is an corporate governance and initiates their extremely important issue for many We consider dialog to be an important development. It is also in charge of draw people in the proximity of an airport. tool with which we can develop proposals ing up the materiality matrix and the regarding the strategic orientation of the sustainability program. Responsibility for The concerns submitted to us are company and information for risk man reporting and managing rankings and extremely diverse. We firmly believe that agement. As a “learning organization” we assessments lies with the “Finance & exchanging information with all stake also strive to achieve progress in science Investor Relations” unit, which is allocated holders contributes to mutual under and technology. to the chief financial officer. standing and developing widely accepted solutions. Stakeholder dialog With its stakeholder dialog activities, Airports are of great interest to the gener Fraport addresses all of the company’s key al public. They are often the cause of stakeholders in a targeted manner. They social and political debates, particularly in include passengers, business partners, Sustainability Report 2018 Our Group 45

Key stakeholder groups

Airlines Economic Passengers enhancement Business Partners Shareholders Customer satisfaction and product quality Bank representives Profitability Analysts Investors Authorities Growth and development in the Group Ideas and innovation

Labor unions Employees Employee representatives

Community Corporate management Employees

Value generation Corporate governance and Attractive and and engagement in compliance responsible employer the regions Data protection Occupational health Noise abatement IT security and and safety airport safety/security

Local residents living near airports Environment Media Politicians Climate protection Airport visitors Protection of environment Economic associations and nature Foundations Air quality

NGOs Science

Examples of stakeholder communication in 2018

External: Internal: –– 2017 Annual Report –– “Retail World” customer magazine –– Employee meetings –– “2017 Compact” –– “STARTfrei” Frankfurt Airport magazine –– Management conference –– 2018 Abridged Environmental Statement –– “FRAporter” journalist information –– “Fraport World” employee newspaper –– Noise abatement reports service –– “Skynet” intranet –– Website www.fraport.com –– Participation in Airport and Regional –– “Fraport Barometer” employee survey –– Press releases and service news Forum (Forum Flughafen und Region) –– Forms of dialog with the Executive –– Social media activities –– Informational events for airport Board and employees –– Customer Advisory Board for passengers neighbors –– “Air Cargo Community Frankfurt” –– Involvement with associations association –– Dialog with authorities 46 Our Group Sustainability Report 2018

Materiality matrix

Corporate governance and compliance IT security and airport safety and security

High relevance Ideas and innovation

Protection of Customer satisfaction environment and nature and product quality Data protection Occupational health and safety Air quality Attractive and responsible employer

Climate protection

Noise abatement Value generation and engagement in the regions Profitability Relevance for stakeholders Growth and development in the Group

Impact of business activities Medium relevance

Medium impact High impact

Relevance for long-term business activities Corporate management Employees Environment High Medium Economic enhancement Community

Updates to the materiality matrix

Our systematic talks with internal and representatives, employees, local residents Both groups were also asked to prioritize external stakeholders provide us with living near airports, business partners, the topics. In a subsequent step, the inspiration for the strategic orientation of investors, and passengers as well as repre new matrix was confirmed by the Execu the company. Since 2010, we have used sentatives from banks, airlines, the media, tive Board. this to create a materiality matrix based non-governmental organizations, politi on the Global Reporting Initiative. The cians, authorities, economic associations, The graphic shows the impact of direct matrix shows the future challenges for the and scientific institutions) confirmed and indirect business activities on the company. In 2018, Fraport AG conducted the relevance of the selected topics in an corresponding aspect, its relevance for an elaborate assessment of the selected online survey. Newly added were the stakeholders, as well as the relevance topics. Fraport’s management and repre topics of “Corporate governance and for Fraport’s business activities. The matrix sentatives of the most important stake compliance”, “Data protection”, “IT is reviewed annually to ensure it is up-to- holders (analysts, shareholders, employee and airport security”, and “Air quality”. date and, if necessary, adjusted. Sustainability Report 2018 Our Group 47

Definitions of the topics

Corporate Governance and Compliance: Growth and development in the Group: Noise abatement: Improvement of the Responsible corporate governance and Growth, consolidation, and expansion of noise situation in neighboring residential compliance with national and internation the Group’s portfolio. areas and staying permanently below the al laws and regulations and internal poli noise limit. cies. Anti-Corruption and Bribery Matters. Ideas and innovation: Developing new

products and more efficient processes. Climate protection: Reducing CO2 Data protection: Protecting personal emissions based on the Paris climate data against improper use and protecting Attractive and responsible employer: protection agreement (two-degree target) the right to privacy of individuals. Protection of jobs and provision of a work by increasing energy efficiency, use and ing environment that is characterized by production of renewable energy, and use IT and Airport Security: Ensuring the diversity, equal opportunities, and respect. of alternative drive systems. safety of IT systems that are critical to the Offers regarding the work-life balance and company and data protection. Maintain development opportunities to recruit, Environment and nature conservation: ing high operational security standards at qualify, and retain dedicated personnel. Careful use of natural resources and airports and fulfilling statutory security continual improvement of environmental obligations. Occupational health and safety: Main performance such as reduced use of taining and promoting the physical and drinking water, prevention and recovery Customer satisfaction and product mental capacities of our employees. of waste, protection of soil and water, as quality: Strong customer and service well as preservation and promotion of focus. Increasing the Group’s competi Value generation and engagement in biodiversity. tiveness and securing Frankfurt’s role the regions: Positive contribution to the as a hub. economic development of the regions in Air quality: Recording air pollutant emis which we operate airports. Charitable sions stemming from airport operations. Economic efficiency: Ensuring the profit involvement in the neighborhood of the ability of the Fraport Group through airport and dialog with our stakeholders. yield-oriented capital expenditure and an efficient use of existing resources.

Sustainability program

Our sustainability program regarding Nevertheless, there are targets that, at the indicator (KPI). The KPIs make it possible strategically important topics for responsi current time, only apply to Group compa to present the extent to which targets ble corporate governance is structured nies in Germany and the Frankfurt site or are achieved in a transparent manner. The analogously to the areas of activity includ the parent company. They are identified topics of “Corporate governance and ed in the materiality matrix. We have set in the program accordingly. It is intended compliance”, “Data protection” and ourselves concrete targets and defined to gradually expand the scope of these “Airport security” are an exception here, the actions required to achieve them. targets to the entire Group, wherever this as they are essential for our business is appropriate. The responsibility for imple and are always a top priority. The topics of “Corporate governance menting the measures and achieving the and compliance”, “Data protection”, “IT targets lies with the relevant departments. You can find the entire program on pages and airport security”, and “Air quality” For the issues that apply across the entire 50 to 57. were added to the program, which is Group, measures from the Group compa reviewed and updated annually. Its scope nies were taken as examples. We report key opportunities and risks is essentially the Fraport Group, i.e., all in our current annual report on companies that are included in the scope Every target is measurable and recorded www.fraport.com in the “Investor of consolidation for financial reporting. using at least one key performance Relations” section. 48 Our Group Sustainability Report 2018

Common goals for global challenges

With Agenda 2030 for Sustainable Development, the international community is expressing its conviction that global challenges can only be solved if we all work together. The Agenda provides the basis for making global economic progress in line with social justice and within the ecological limits of our planet.

Agenda 2030 was adopted by all In January 2017, the Federal Cabinet Our focus in this regard is on the SDGs member states at a United Nations adopted the “German Sustainability which, in our view, lie within the scope of summit in September 2015. The Strategy – Revised 2016”. This is mainly what we are able to influence by our heart of the agenda consists of 17 Sus modeled on the UN Agenda 2030 and actions. In 2018, we assessed and adapt tainable Development Goals (SDGs). its sustainable development goals. ed the selection. SDG No. 11 “Sustain For the first time, the SDGs give equal able cities and communities” was added. weighting to all three dimensions of As a signatory to the UN Global Com In addition, we have identified four sustainability – social, environmental, pact, Fraport AG is particularly commit SDGs within this selection with which economic. ted to the objectives of Agenda 2030 we make our largest contribution or and the Sustainable Development Goals. have the greatest impact based on the number of associated topics.

Fraport AG assumes responsibility for the Well-trained employees are required in a spe health of its employees and offers compre cialized field such as managing and operating hensive benefits to maintain and promote an airport. We therefore provide a wide range their physical and mental performance. We of continuing education opportunities and monitor the air quality at the airport and are offer numerous traineeships every year. working on an inventory of air pollutant Through our own environmental fund, we also emissions. Our noise abatement goals contribute to noise support projects, institutions, and facilities that improve the abatement in nearby residential areas and reduction in the employability of young people in the region, as well as research number of those affected by noise at the Frankfurt site. and environmental education activities.

Areas of activity Areas of activity –– Occupational health and safety –– Attractive and responsible employer –– Air quality –– Value generation and engagement in the regions –– Noise abatement

Fraport AG is committed to ensuring a working Operating an airport requires a lot of water environment that is characterized by diversity, and simultaneously generates a large amount equal opportunity, fairness, and respect. of waste water. When dealing with the legally protected resource of water, Fraport takes all aspects of modern water management into account and conserves natural resources. Area of activity –– Attractive and responsible employer Area of activity –– Environment and nature conservation Sustainability Report 2018 Our Group 49

The use of renewable energies is an essential The Fraport Group is internationally one of component for achieving the climate protec the leading companies in the airport busi tion targets of the Fraport Group. We con ness and has set itself the goal of profitable tinually examine the options for use of renew growth and the long-term achievement of a able energies and manage our electricity positive value added in all business fields purchasing portfolio to keep our emissions (economic enhancement). This includes factor below the national average. When our energy efficiency creating good labor conditions and development opportuni measures are exhausted, we increase the renewable propor ties to recruit, qualify, and retain dedicated personnel. tion in the purchasing portfolio to bridge the gap to achieve our climate protection targets. With our value generation, we also make a positive contribu tion to the economic development of the regions in which our Area of activity sites are located. –– Climate protection Areas of activity –– Economic efficiency –– Growth and development in the Group –– Attractive and responsible employer –– Value generation and engagement in the regions

Innovations are a key to competitiveness for Fraport monitors the air quality at the Fraport AG. The aim is to introduce new Frankfurt site and is working on an inventory technologies and continuously optimize com of air pollutant emissions. This includes plex processes to meet a wide range of evaluating the airport’s share of the local customer demands while staying true to our concentration of nitric oxide. economic and business requirements. This is also part of the further development of our airport infrastructure Area of activity and Group portfolio. –– Air quality

Areas of activity –– Ideas and innovation –– Customer satisfaction and product quality –– Growth and development in the Group

We want to operate our business model as Operating an airport and air traffic have an sustainably as possible. To this end, compli effect on the environment. Fraport is commit ance with international regulations on occu ted to the due and proper consideration of pational health and safety is the obvious the environmental requirements associated course for us. We consider ourselves responsi with this. This includes, in particular, increasing ble for protecting the environment, and we energy efficiency, as well as monitoring and expect our suppliers and service providers to do the same. minimization of the emission of climate-relevant gases caused by airport operations. Areas of activity –– Occupational health and safety Area of activity –– Climate protection –– Climate protection –– Environment and nature conservation

As transport hubs, airports make intensive As a company with operations throughout the use of resources. We are committed to the world, Fraport bears responsibility at both a maintenance and improvement of the bio national and an international level. We have diversity of the airport grounds and their made a commitment to comply with interna surroundings. tionally recognized standards of conduct and are a member of national and international Area of activity working groups to promote sustainable devel –– Environment and nature conservation opment. 50 Our Group Sustainability Report 2018

Our Program

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Governance

Corporate Governance We seek to lead the company It is not necessary to determine the key performance indicators since the topic Group ––Commitment to implement the corporate policy on the Compliance Management System does not apply and Compliance responsibly and with transparency “corporate governance and compliance” is a basic requirement at all fully consolidated Group companies in all matters. for our business and included in our standard processes. ––Measures to prevent corruption (training, business partner assessments and documentation of compliance-related processes) ––Reporting of compliance violations via a certified whistleblower system (BKMS® system) and clarification of the facts by the Compliance department

Data protection We want to ensure the handling of It is not necessary to determine key performance indicators since the data Group Group: does not apply personal data in compliance with the protection regulations in each respective country must be observed at all times. – Compliance with the European General Data Protection Regulation and national data protection laws data protection laws and safeguard the rights of those affected. Fraport AG: –– Implementation of a data protection management system –– Implementation of a privacy policy and a uniform guideline for deleting data –– Establishment of an adequate training concept

IT and Airport Security We protect our IT systems and Confidence level in Highest confidence level 2020 Fraport AG & –– Continued development of existing security standards within the scope of industry working groups second-highest data against failure, manipulation, accordance with integrated –– Introduction of standardized tool support for all processes in IT security, including documentation confidence level and unwanted publication. specific aviation subsidiaries at the –– Awareness-raising activities for staff and external workers to ensure high security awareness security standards. FRA site, parts of Greece

We want to ensure the safety It is not necessary to determine key performance indicators since security in aviation Group Group: does not apply of everyone at our airports. and on Fraport premises is always the highest priority. –– The Group is responsible for guaranteeing airport security at the Group airports

Fraport AG: –– Continuation of the air safety program for Frankfurt Airport –– Emergency planning according to ICAO regulations –– Emergency management with ERIC (Emergency Response and Information Center) and care team –– Safety management system according to EU Regulation 2018/1139 –– Security awareness campaign for all employees at the airport –– Regular meetings with airlines, security firms and authorities Sustainability Report 2018 Our Group 51

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Governance

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Economic enhancement

Customer satisfaction We want to continuously optimize Global passenger ≥ 80% 1) 2021 FRA site –– Continuing the service program to improve the quality of the time spent at the airport 86% and product quality the focus on customers and services satisfaction –– Implementation of special training formats for employees within the scope of the at our airports. Passengers “service excellence” program to further improve the hospitality and service focus –– Exchange with our most important partners in the service quality committee

Customer Service At the level of the previous year (2017: 75.4%) 2019 FRA site –– Regular exchanges with airline representatives 73.9% Index Airline –– Assistance with requests regarding internal organization and maintaining contacts with authorities and Group companies –– Information on infrastructure and commercial innovations at the site

Baggage connectivity > 98.5% 2019 FRA site ––Continuous development of optimization measures, which are agreed upon in close 98.4% collaboration with customers during regular performance meetings

Economic efficiency We want to maintain our financial Group result 2018: between around €400 million and around 2019 Group –– Maintaining the competitive integrated business model at the Frankfurt site €505.7 million strength at a high level, despite €430 million –– Securing the competitive cost structures, also by introducing digitalization and automation future capital expenditure, and 2018 adjusted: upper range level due to sales of processes increase the company’s value in proceeds from Hanover shares –– Decrease of energy consumption by 20% by 2022 compared to fiscal year 2013 the long term. Exceeded range without major capital expenditure 2019: between around €420 million and around €460 million

ROFRA 2018: at roughly the same level as in the previous year 2019 Group 11.1% (+1.1 PP) 2019: significant decrease

Net financial debt 2018: increase to about €4 billion 2019 Group €3,545.4 million 2019: increase to about €4 billion

Free cash flow 2018: significantly below the previous year’s level 2019 Group €6.8 million (– 98.3%) and negative 2019: noticeably below the previous year’s level and significantly negative

Growth and develop- We want to increase passenger Frankfurt passengers 2018: range of approx. 67 million to approx. 2019 Frankfurt –– Continued development of the Frankfurt site as a hub Growth of 7.8% ment in the Group numbers organically and optimize 68.5 million passengers –– Continued development of low-cost traffic at the Frankfurt site (69.5 million our portfolio. 2018 adjusted: passenger numbers of slightly passengers) –– Construction and inauguration of Terminal 3 above 69 million passengers 2019: growth of approx. 2% to approx. 3% –– Implementation of modernization and expansion measures at the airports in Peru, Brazil, Greece and Slovenia

Group passengers 2018: passenger growth in all Group airports 2019 Group Passenger growth at 2019: passenger growth in all Group airports all Group airports

Ideas and innovation We want to promote and take Benefit of at least €300,000/year 2020 Group 2) –– Presentation of ideas and innovation award 126,000 advantage of the know-how and skills implemented ideas –– Topic-specific campaigns to generate ideas for selected problems of our employees and incorporate (in €) –– Creation of an online platform for employees to share knowledge and develop solutions the input of our stakeholders.

1) From 2021 with Pier G: 82.5%, from 2025 with T3: 85%. 2) Includes Fraport AG and the German Group companies. Sustainability Report 2018 Our Group 53

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Economic enhancement

Baggage connectivity > 98.5% 2019 FRA site ––Continuous development of optimization measures, which are agreed upon in close 98.4% collaboration with customers during regular performance meetings

ROFRA 2018: at roughly the same level as in the previous year 2019 Group 11.1% (+1.1 PP) 2019: significant decrease

Net financial debt 2018: increase to about €4 billion 2019 Group €3,545.4 million 2019: increase to about €4 billion

Free cash flow 2018: significantly below the previous year’s level 2019 Group €6.8 million (– 98.3%) and negative 2019: noticeably below the previous year’s level and significantly negative

Group passengers 2018: passenger growth in all Group airports 2019 Group Passenger growth at 2019: passenger growth in all Group airports all Group airports

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Employees

Attractive and We want to create good working Employee satisfaction Better than or equal to 3.0 2019 Group 1) –– This indicator is regularly updated based on survey data. The results are used to identify potential 2.76% responsible employer conditions and increase employee for improvement and derive appropriate measures. At Fraport AG, they are documented by the satisfaction. Personnel Services central unit; the implementation is controlled.

Group: –– “Best leader” leadership program with workshops, team building, coaching, and other measures to strengthen leadership skills (Fraport Slovenija) –– Update of the system for annual performance assessment, promotion of team building through joint volunteer work (Twin Star)

Fraport AG: –– Optimization of joint operations, including through better integration of FraGround employees in service and group discussions for ground services

We want to increase the number of Women in manage 30% 2021 Group 2) –– Strategic succession planning across all management levels 26% women in management positions. ment positions –– Specific coaching and mentoring programs (first and second level below the Executive Board)

We want to offer good development Traineeships ≥ 110 2020 FRA site –– Varied range of traineeships with a job guarantee of at least one year, permanent contracts offered 127 positions offered, opportunities to recruit and retain to trainees (for those who demonstrate professional and personal aptitude) in technical occupa 120 positions filled; motivated employees. tions, site firefighting department and emergency medics plus 8 offered and –– Continuation of the vocational preparation program “Ready for Take-off” 7 filled positions in the “BIFF” program 3) –– Restructuring of the offer of political education in cooperation with the Akademie Frankenwarte and and 12 offered and 10 the Anne Frank Educational Center filled positions in the “Ready for Takeoff” program

Occupational health We want to constantly reduce Work accidents per ≤ 25 2020 Group Group: 26.1% and safety workplace accidents. 1,000 employees –– Implementation of the occupational safety and health management manual in all Group companies

Fraport AG: –– Systematic implementation of measures identified in the risk assessments –– Enhancement of the prevention culture through targeted training measures and projects with managers and employees, with a focus on “safe behavior in the workplace” –– Continued development of the occupational safety management system –– Implementation and further development of load-reducing technical solutions in the ground services section

We want to stabilize the sickness rate Sickness rate ≤ 7.2% 2025 Group Group: 7.4% in the medium term and reduce it –– Increasing flexibility in work hours, e.g. flextime in administrative areas, opportunities to trade shifts in the long term. in the operational shift work (Lima Airport Partners) –– Health insurance for full-time staff (Twin Star) –– Sporting events, seminars, health check-ups, personal trainers (Fraport Slovenija)

Fraport AG: –– Supplementary company health insurance –– Subsidies for gym memberships with regular workouts –– Appreciation campaign for operational areas with high workloads: Food and beverage campaign as well as massage vouchers

1) Includes Fraport AG and 11 Group companies at the Frankfurt site as well as the Group companies Lima, Twin Star, and Fraport Slovenija. 2) Includes Fraport AG and the German Group companies. 3) Vocational integration of refugees in Frankfurt Rhine-Main Sustainability Report 2018 Our Group 55

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Employees

Attractive and We want to create good working Employee satisfaction Better than or equal to 3.0 2019 Group 1) –– This indicator is regularly updated based on survey data. The results are used to identify potential 2.76 responsible employer conditions and increase employee for improvement and derive appropriate measures. At Fraport AG, they are documented by the satisfaction. Personnel Services central unit; the implementation is controlled.

Fraport AG: –– Optimization of joint operations, including through better integration of FraGround employees in service and group discussions for ground services

Occupational health We want to constantly reduce Work accidents per ≤ 25 2020 Group Group: 26.1 and safety workplace accidents. 1,000 employees –– Implementation of the occupational safety and health management manual in all Group companies

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Community

Value generation We want to make a positive Gross value generation +2% compared to the previous year 1) 2019 Group –– Operational and financial improvements at Group sites +19.9% and engagement contribution to the economic and (company perfor –– Capital expenditure on existing airports to meet the future mobility requirements of the particular (around €3.7 billion) in the regions social development of the regions. mance) regions and markets

Noise abatement We want to keep the area affected LOG noise area: ≤ 22,193 ha Up to FRA site Active noise abatement measures, such as 17,582 ha by aircraft noise below the noise Area affected by a full –– Encouraging the replacement of fleets with quieter aircraft through the charges schedule ceiling during the day. Leq of 55 dB(A) day capacity –– Increase in the approach glide angle for the northwest runway to 3.2 degrees –– GBAS-based noise-abatement flight approach procedures, especially increase in the angle of approach glide to 3.2 degrees for the south and central line –– Incentivization of GBAS as a component of the application for airport charges

Environment

2) Climate protection We want to reduce the CO2 emissions Absolute emissions 125,000 metric tons CO2 2030 Group –– Improvement of energy efficiency in terms of running buildings and airport infrastructure 244,029 t CO2 of the Fraport Group. (sum of scopes 1 and –– Increased use of vehicles and ground handling equipment with alternative drive systems 2 GHG Protocol) of –– Use of alternative energies in accordance with the given local circumstances the Fraport parent company and the fully consolidated Group airports in

metric tons of CO2

We want to reduce the CO2 emissions Absolute emissions 80,000 metric tons CO2 2030 Fraport AG –– Improvement of the energy efficiency of existing buildings of Fraport AG 188,631 t CO2 of Fraport AG at the FRA site. (sum of scopes 1 and –– In the terminals 2 GHG Protocol) in –– In offices and services buildings metric tons of CO2 –– Planning and implementation parallel to construction of an energy-efficient new terminal (T3) –– Implementation of energy measures in the baggage transfer system by 2020 Specific CO2 emissions 0.9 kg CO2/traffic unit 2030 Fraport AG 2.07 kg/CO2 (sum of scopes 1 and –– Expansion of electric vehicle fleet (focus on ground services) by 2020 2 GHG Protocol) in

kilograms of CO2/ traffic unit

Environment and We want to provide our services in Proportion of fully 100% 2020 Group –– Assessment of Group companies in terms of their environmental relevance 86.7% nature conservation the Group while always taking consolidated, environ –– Expansion of environmental management systems in other Group companies environmental concerns into account mentally relevant that are environmentally relevant based on their portfolio and to constantly improve our Group companies with environmental performance. certified environmental management systems (EMAS or ISO 14001), weighted according to revenue.

Air quality We seek to record the air pollutant Inventory of air NOx: 100% 2022 FRA site 3) –– Quality assurance of the inventory and operating data NOx: 87% 4) emissions of all relevant emission pollutant emissions –– Optimization of methodology for the use of operating data for the emissions model sources from airport operations. according to main –– Specialist support of the LASPORT program (emission and propagation model to determine sources PM10AA: 100% emissions caused by the airport and aircraft) PM10AA: 30% 4)

1) Subject to maximum net financial debt of 4x – 6× EBITDA 2) Includes Fraport AG and Fraport Greece as well as the Group companies GCS, FraGround, Fraport Slovenija, Lima, Fortaleza, Porto Alegre, and Twin Star. If necessary, the target will be adjusted to any changes in Fraport’s airport portfolio. 3) Including air traffic up to 300 m. 4) In reference to a full special evaluation in 2016. Sustainability Report 2018 Our Group 57

Sustainability topic Target Key Target level Term Scope Measures Status and Target performance (As at: end of 2018) Attainment indicator End of 2018

Community

Environment

Governance

Fraport gives the highest priority to ensuring legally compliant behavior in the company. This is particularly reflected in the high standards for effective compliance management. However, for us, compliance does not end with the fulfillment of legal provisions: Rather, we seek to always act according to ethical principles. An important basis is our corporate culture focused on our values. Sustainability Report 2018 Governance 59

Corporate Governance and Compliance

Responsible corporate governance and compliance with national and international laws and regulations and internal policies. Anti-Corruption and Bribery Matters.

Values-based corporate culture

The Fraport Group has undertaken to The certified electronic whistleblower age permitting full-time employment in comply with the most important interna system (BKMS® System), which is avail compliance with the relevant national tionally recognized codes of conduct – able within the Fraport Group, is an regulations is observed within the Fraport the principles of the UN Global Compact, important tool for preventing and uncov Group. The Code of Conduct and the the OECD Guidelines for Multinational ering violations. Fraport AG has also Compliance Guidelines in place at each Enterprises, and the Core Labor Standards engaged an external lawyer to act as respective Fraport Group company are of the International Labor Organization ombudswoman for all employees at the available to all employees on the internal (ILO). In accordance with the values in German Group companies as well as information portals. The Supplier Code of the Fraport Code of Conduct, Fraport customers, suppliers, and other business Conduct ensures the respect for human intends to operate with integrity and in partners. Her job is to receive, legally rights in assignments and also includes an economically and ecologically sustain review and forward information about subcontractors. able manner. This responsibility is defined unlawful conduct that damages the in the Code of Conduct for all employees. company. An internal representative is Regulations on working hours and The same expectations can be found in also available to employees in Germany. complaints mechanisms, for example, are the Fraport Supplier Code of Conduct. implemented as part of large financing Fraport expects its suppliers and service Respect for Human Rights projects, some of which are also demanded providers to comply with the same stan by external lenders. The Environmental dards regarding the treatment of employ Fraport rejects any form of forced or child and Social Action Plan (ESAP), which ees and integrity in business activities. labor. Among other things, the minimum requires the implementation of a human 60 Governance Sustainability Report 2018

“For many years, Fraport has been committed to complying with internationally recog nized codes of conduct with regard to responsible corpo rate governance. These include the ten principles of the UN Global Compact, to which we have been expressly committed since 2007. The UN 2030 Agenda and the objectives contained therein for sustainable development are part of our voluntary Dr. Stefan Schulte commitments.” Chairman of the Executive Board

resource policy as well as a management ecological guidelines. In addition, the is already in practice in Brazil. Close and a monitoring system, is, for exam Group company has committed itself to cooperation with the competent author ple, a prerequisite for the financing of respect the “Equator Principles”, a set ities of the municipal administration Fraport Greece. The the scope of the plan of rules set forth by banks to comply with and the regional government ensures extends not only to Fraport’s employees, environmental and social standards in strict compliance with local legislation. but also to suppliers and subcontractors. the area of project financing. The Porto Alegre Group company must The ESAP also regulates the conditions compensate the affected families. for employees along the supply chain in In addition to an electronic whistleblower order to prevent, for example, suppliers system introduced in 2018, Group com The aforementioned organizational con from employing refugees under inappro panies Fortaleza and Porto Alegre have set cepts for identifying and reporting irregu priate working conditions. up monthly meetings which, among larities ensure that the Executive Board other things, focus on the protection of gains direct knowledge of any known In its “Environmental Impact Study for workers. For the implementation of the cases of human rights violations or any the Expansion Program of the AIJCH” expansion program, the Group company other relevant information in that regard. updated for fiscal year 2018, the Group Porto Alegre is committed under the During the reporting period, no com company Lima laid out the requirements concession contract to relocate over plaints related to human rights were for the contractual implementation of the 900 families. The relocation is being submitted to Fraport through the formal airport expansion in line with social and conducted in a structured manner, which organizational complaint mechanisms. Sustainability Report 2018 Governance 61

Anti-Corruption and Bribery Matters The internal audit department provides Measures to prevent corruption are independent and objective audit and derived by the Group companies on the Ensuring legal and compliant behavior in consulting services in all major business basis of this risk analysis. These include, for the Fraport Group is part of the corpo units of Fraport AG, its subsidiaries and example, training measures and the rate culture. The Code of Conduct appli joint ventures and Group companies and addition of compliance-related processes. cable to all employees worldwide also performs compliance audits. The focal takes into account the United Nations’ points of the audits are developed on the Within the scope of large financing anti-corruption conventions. The Execu basis of a standardized, risk-oriented, projects, additional measures against tive Board is expressly committed to these planned approach. corruption and bribery are implemented principles as well as the zero tolerance in the Group companies, in part also as principle, in particular in respect to cor stipulated by external lenders. Within ruption and violations of antitrust and Compliance aspects, such the context of the invitation to bid for competition law. The Code of Conduct is as reviews of business the expansion of the airport, the Group a key part of the Compliance Manage company Lima has obliged all bidders to ment Systems (CMS) of the Group com partners on the topics of sign an anti-corruption agreement. In panies and of Fraport AG’s CMS. The corruption, price fixing, accordance with Brazilian law, Group comprehensive analysis of compliance companies Fortaleza and Porto Alegre risks, which is focused on the areas of and fraud, are taken into trained their employees on the topic of anti-corruption, bribery, and antitrust account for each capital anti-corruption and held separate train and competition law, forms another ing for executives in fiscal year 2018. important part of the CMS. expenditure project and for consulting services. The aforementioned organizational The objective of the CMSs in the Fraport concepts for identifying and reporting Group is to ensure corporate manage irregularities ensure that the Executive ment based on values and integrity which The Group companies implement the Board gains direct knowledge of any goes beyond the mere fulfillment of Fraport Standards for the CMS based on known cases of corruption and bribery standards. The values-based corporate the policy on the Group CMS. The CMSs or any other relevant information culture is the basis of the stable further of the Group companies also ensure that they receive. In fiscal year 2018, no development of the CMSs. The CMSs are the corporate culture of Fraport AG is agreements with any business partner designed to be preventive and should transferred to the entire Group. Similar were terminated due to allegations of enable Fraport employees to become to Fraport AG, the compliance risk corruption. aware of compliance risks and violations analysis is the focus of the local CMSs. at an early stage and respond to them appropriately. For Fraport AG, the Execu tive Board has expressly committed to this value-based compliance. With the Group-wide Code of Conduct as well as various communication measures, the Executive Board supports the Managing Directors of the Group companies as well as Fraport AG employees and their managers to meet their responsibility to continuously implement the compli ance targets.

Semi-annual compliance reports inform the Executive Board about the activities of the department dealing with compliance of Fraport AG and the status of measures to combat corruption. Both the Code of Conduct and the Compliance Guidelines are available to all employees on the internal information portals.

In the interests of strengthening integrity and corruption prevention, Fraport AG laid out guidelines for accepting gifts and invitations in a new policy in fiscal year 2018. 62 Governance Sustainability Report 2018

Supply Chain and Procurement partners and suppliers must also of Fraport AG’s order volume of approxi undertake to observe these principles mately €874 million was awarded to Unlike manufacturing companies, in dealings with their own suppliers. companies in the Rhine-Main area in Fraport’s management does not focus 2018. Around 98% of the order volume on the supply chain, but on the quality of was awarded to suppliers and service the services offered and the functionality Fraport AG undertakes providers based in Germany, approxi of the infrastructure required for this. to generally focus on mately 1% to those based in the EU and Irrespective of this, it is crucial that busi about 1% to those based in the US and ness partners and suppliers are selected sustainability criteria Switzerland. As there are comparable carefully. The Group companies each have when purchasing legal standards in these countries, their own procurement management. in particular in relation to respect for products and services. human rights as well as anti-corruption In accordance with fulfilling legal regu and bribery matters, the first level of lations based on local customs and as Fraport AG’s supply chain is not deemed part of its General Terms and Conditions In addition, the company was one of the critical. Although orders with business (AGB), Fraport compels business part first in Hesse to sign a target agreement partners and suppliers based outside ners and suppliers to comply with its initiated by the Hessian Ministry of the the aforementioned countries seem Supplier Code of Conduct. The Fraport Environment, Climate Protection, Agri insignificant in relation to the total order Supplier Code of Conduct details how culture and Consumer Protection in 2016. volume, of which they make up less to treat employees correctly, including Consequently, social and ecological than one percent, especially the business respecting human rights, environmental criteria are considered in purchasing relationships with suppliers from risk and climate protection, and integrity in decisions in addition to economic criteria. countries, known as the “Primary Impact the course of business, for example the Countries” (in accordance with the prohibition of corruption and bribery. Fraport AG has a heterogeneous require FTSE4Good Index), require particular A violation of this code may result in the ment structure. Its requirements range care. For this reason, an examination of termination of the business relationship. from architectural services to the con the first level of the supply chain by A contractual penalty may be imposed struction of airport infrastructure and its contractors’ country of origin is an and a claim for lump-sum damages may maintenance, from office materials to IT essential part of regular monthly report be raised in the event of antitrust viola services and aircraft push-backs. More ing for the “Central Purchasing, tions and serious misconduct. Business than 60% (approximately €528 million) Construction Contracts” central unit. Sustainability Report 2018 Governance 63

If contracts for product groups that been carried out depending on the order fuel and is subject to the afore include suppliers or service providers value. In addition to mandatory checking mentioned terms, as is the case for from risk countries are to be put out to of sanction lists and company infor Lüftungsanlagen- und Gebäude tender and awarded, the potential mation, this includes extensive research technik LAG. contractors will be reviewed depending online on potential business partners on the order value. This also applies to before business relationships are started. The international Group companies orders for work clothes, for example. must also comply with all components The location of production sites is peri The five largest suppliers to Fraport AG of the Group CMS policy. This applies in odically checked. If a business relation according to order volume are the compa particular to large construction projects ship is started with a supplier from one nies FraSec, FraGround, Total Mineralöl, such as the new terminal at Lima Air of these countries, sanction lists are FraCareS, and Lüftungsanlagen- und port. In Lima, compliance with the extensively checked in advance. Sanction Gebäudetechnik LAG. Fraport AG wholly Fraport Supplier Code of Conduct is an lists are official lists of people, groups or owns the Group companies FraSec, integral part of the contract with the organizations subject to economic or FraGround, and FraCareS. These mainly general contractor and its subcontrac legal restrictions. If there are irregulari provide security services and ground tors. Fraport Greece also obliges its ties, further checks are planned which may result in the withdrawal of an order.

Fraport AG has fulfilled the legal require ments concerning assignments of external workers based on independent service and work contracts, as opposed to temporary work, by implementing external staff compliance within the framework of a policy on the assignment and deployment of external workers. The policy includes a mandatory inspec tion process in determining different types of contracts and reduces the risk of false service or work contracts or covert contracts for temporary work. This review process also covers the assignment of external workers by Group companies for Fraport AG. The Group companies independently ensure the legally compliant assignment of external personnel by implementing suitable processes.

A separate procurement process via the Group company Fraport Ausbau Süd was defined for the Expansion South project, in particular Terminal 3 at Frankfurt Airport, due to the size and complexity of the project. By submitting services. As fully consolidated Group business partners and suppliers to com an offer in this procurement process, companies, they must adopt the Code ply with the Fraport Supplier Code of building companies are obliged to of Conduct for employees and are also Conduct, which is an integral part of the comply with all requirements in the obliged to comply with the Group contract with the general contractor for Posted Workers Act (Arbeitnehmer- Compliance Management System (CMS) the expansion and the modernization of Entsendegesetz, AEntG) and the Mini policy. These guidelines include instruc the Greek regional airports. The Brazilian mum Wage Act (Mindestlohngesetz, tions to make the Supplier Code of Group companies Fortaleza and Porto MiLoG), to make contributions to the Conduct part of the General Terms and Alegre also include the Fraport Supplier collective bargaining parties’ joint Conditions and to use it insofar as this Code of Conduct as part of the contract facilities, and also to only engage sub is possible for the Group companies with the general contractor. contractors or other third parties that pursuant to national law. If such inclu meet these requirements. The Fraport sion in the General Terms and Condi Supplier Code of Conduct also forms tions is not possible, or is only possible if part of any agreement. the Supplier Code of Conduct is modi fied, the local management shall inform A due diligence review process was the department dealing with compliance defined for purchases made for the con at Fraport AG. The company Total struction of Terminal 3, which has since Mineralöl supplies the Frankfurt site with 64 Governance Sustainability Report 2018

Data protection

Protecting personal data against improper use and protecting the right to privacy of individuals.

Data protection ensured

Protecting personal data is a priority for compliance with the data protection mented with e-learning methods. For any company. As a responsible partner, laws and to safeguard the rights of the employees who handle sensitive data to Fraport always requires the highest stan data subjects. a particular extent, classroom training dard in this area, regardless of whether it sessions were also held, and the content is the data of passengers, customers, The Data Protection Officer at Fraport AG of these sessions is available as video employees, or contractors. monitors compliance with these regu training. lations within the company. He reports Data protection laws have always been directly to the Executive Board and is As part of the Association of German a high priority in Germany, and data independent in exercising his tasks in Commercial Airports (ADV), Fraport AG protection has been clearly regulated the area of data protection. Violations of is part of a task force, which in addition since 1980 by the Federal Data Protec the GDPR or other related complaints to Munich Airport includes many other tion Act (BDSG). While the BDSG only can be sent directly to him, anonymously airports, on the subject of GDPR. Partici applies to Germany, the EU General Data if necessary. pating in this task force allows Fraport to Protection Regulation (GDPR), which continuously evaluate its own measures came into effect in May 2018, has har against a benchmark. monized data protection in all EU Mem In 2018, Fraport AG did ber States. However, there may be not record any violations To ensure compliance with the new deviations from this regulation when regulation, Fraport AG has realized a transferred to national law. of data protection that project to implement the requirements were reportable according of the GDPR since 2017. The existing Within the Fraport Group, the GDPR framework conditions have been affects the Group companies within the to the GDPR. checked and new processes established EU. The Executive Board works towards where necessary. They are also part of ensuring the Group companies in other the quality management system accord parts of Europe comply with the regula Fraport AG has a notification process ing to ISO 9001. The records of pro tion as in Germany. The individual Group for data protection and data security cessing activities in accordance with the companies are independently responsi incidents in place. Complaints and access requirements of the GDPR have been ble for the implementation and the requests by data subjects are processed created and are constantly being up EU Group companies have fulfilled this promptly and completely. To consolidate dated. In addition, a guideline for responsibility. Compliance is monitored the processes and rules at Fraport AG, it deleting personal data was developed. by Fraport AG. For the Group companies implements existing processes in a data The steering committee of the project outside the EU, the laws on data protec protection management system and is receives regular reports on the prog tion are implemented in accordance with planning the implementation of a data ress. The Executive Board is informed national regulations. The objective is to protection policy. Existing training con regularly by a member of the steering ensure the handling of personal data in cepts have been revised and imple committee. Sustainability Report 2018 Governance 65

Information available on our website

In the course of examining the condi tions, among other things, the Fraport website was assessed regarding personal data to ensure compliance with GDPR. The data protection statements for all so-called data subject categories such as employees, visitors, applicants, passen gers, or customers are available at privacy-statement.fraport.com.

Personal data of passengers are required by Fraport AG primarily for the use of parking garages and for baggage han dling. The processing of travel data is the responsibility of the airlines. The majority of the personal data processed by Fraport is due to the issue of airport ID cards and is thus compulsory for security reasons.

Fraport AG has established a working group at the Frankfurt site, which is responsible for all issues relating to the use of video technology and consists of employees responsible for data protec tion, product management video, requirements management of the rele vant sections, and corporate safety, along with the involvement of the Works Council. It is developing a con cept that lays out clear rules for users of all video data regarding the respective purpose and data protection require Separate process for video technology the strategic business unit Airside and ments. The concept contains the roles Terminal Management, Corporate Safety and authorizations for the use of video Furthermore, a standardized approval and Security has been appointed by the technology throughout the entire airport process has been established which Executive Board to head the working grounds. Regulations on the use of is primarily based on the appointment group of all video officers. He is also a Fraport video technology by authorities of video officers (VO) by the areas point of contact for the authorities. is also included. deploying this technology. The VO of These measures ensure that the require ments for video surveillance are com patible with the privacy rights of passen gers, visitors, and employees.

To ensure safety at airports, personal access rights must be managed and controlled. In Frankfurt, this is carried out by way of an identification manage ment system as well as new access control systems for gates and all other access points to operational and security areas. Fraport AG has implemented both technical and organizational mea sures to protect data against misuse. The requirements of the GDPR are also fully complied with in this respect. Access to this system is limited to a small group of people for specifically defined tasks, so that misuse is excluded as far as possible, but can also be identified and tracked. 66 Governance Sustainability Report 2018

IT and Airport Security

Securing the safety of IT systems and data that are critical to the company. Maintaining high operational security standards at airports and fulfilling statutory self-protection obligations.

Highest priority: Security

Security is the key requirement for air officers of the Group companies underlying risk potential for IT systems. traffic. This principle applies equally to exchange information on certain Fraport takes account of this situation passenger traffic and air freight. This is projects or topics. with active and preventative IT security why security management has always management, with the goal of ensuring been a top priority for Fraport. IT Security the safety of business-critical IT systems. The requirements for IT security are All 192 member states (including all All important business and operating specified in the IT security policy and countries in which Fraport is active) of processes at Fraport AG are supported security guidelines that must be followed the International Civil Aviation Organi by IT systems and IT components. Due throughout the Group. Compliance with zation (ICAO) have contractually com to the ongoing development of new these requirements is checked regularly mitted to comply with the organization’s technologies and the increasing global by Internal Auditing, IT security manage safety standards and recommended threat of cyberattacks, there is an ment, or external advisors. practices for airports. The same applies for the 44 member states of the Euro pean Organization of European Civil Aviation Conference (ECAC). National legislation regulates the responsibilities within this framework. In contrast to most EU, ECAC, and ICAO member states, German law allocates, for exam ple, passenger and baggage checks to government authorities, whereas in other countries this is usually the respon sibility of the airports. The application of stricter measures based on a local risk evaluation in individual EU Member States is also possible.

Within the Fraport Group, each com pany is subject to the safety regulations in place in its respective country. Management must present proof of the fulfillment of the requirements to the supervisory authority in the respective country. Nonetheless, the security Sustainability Report 2018 Governance 67

As a rule, the IT systems of the Group operators, Deutsche Lufthansa and the companies at the Frankfurt site as well German Air Traffic Control, continues as the SAP systems of Fraport Greece to develop the safety standards of the A company code system are integrated into the technology of industry. These are based on the new can provide information Fraport AG at the Frankfurt site and requirements laid out by the IT Security managed from there. Exceptions in this in Critical Infrastructures Act (KRITIS). about the status of regard are only possible with the con Through the selection of security IT security measures, sent of the Executive Board. The other measures, the assignment of measures Group companies use their own IT according to predefined confidence divided into security and infrastructure, that they protect accord levels, and mutual assessment, the goal compliance aspects, ing to the Group’s IT security policy. is to establish a high standard of security within the aviation industry. at any time. A serious system failure or material loss The work should be completed in of data could lead to serious business 2019, and the industry standard will disruptions and security risks. In addition be released by the German Federal to this, attacks by viruses and hackers Office for Information Security. At The resulting overall score is regularly could lead to system failure and ulti Fraport AG, the statutory requirements reported to the Executive Board. mately to the loss of business-critical or will be implemented together with confidential data. To counter these risks, the standard by mid-2019. The risk management and safety man all of the IT systems of critical impor agement systems as well as selected tance to the company are configured The use of a standardized tool for all IT measures are subjected to regular orga redundantly and are housed at separate security processes, including docu nizational and technical audits and sites. The risks in the area of IT security mentation, is currently being planned. checks by the internal audit department. are included in the risk management In addition, the section coordinates In 2018, Fraport AG once again imple system. awareness-raising activities for staff and mented a variety of projects to ade external workers to ensure a high security quately respond to the growing risks A separate section is responsible for IT awareness. The IT Security Officer at arising from information technology. security at Fraport AG. Its tasks are, Fraport AG reports weekly to the Chief Among other things, Fraport AG has among other things, the ongoing identi Information Officer, and a report is revamped its awareness-raising campaign fication and implementation of measures submitted to the IT Management Board originally launched in 2012. In addition, to meet high safety standards. every two months. The level of IT security new requirements from the German IT is also part of the annual management Security Act, such as the reporting of Within the scope of a working group in report for ISO 9001 quality management incidents and an independent audit of the German Aviation Association, certification. security levels, have been implemented. Fraport AG along with other airport 68 Governance Sustainability Report 2018

Airport Safety areas at Frankfurt Airport. All factors that services then coordinate operations in the may affect the safety of airport opera field. A crisis unit commences operation This area encompasses both security and tions are taken into account in the SMS, in the “Emergency Response and Infor safety: Safety refers to the operational whether they are of a technical, organiza mation Center” (ERIC). It coordinates safety of the overall airport as well as the tional, or human nature. To this end, and executes all measures that require a safety within the airport grounds. Security internal and external employees can send concerted approach at the site beyond is understood in terms of defending safety notices or messages. They are any routine damage and risk prevention. against terrorist threats and protecting civil treated as confidential upon request, and If necessary, the care team is deployed, aviation. The relevant measures include they can also be placed anonymously. which interacts with passengers, greeters, passenger, baggage, and cargo inspections and relatives on site, or mans the “emer and reviewing the access control points The SMS in place for all people and gency information center” to handle for airport employees and suppliers. organizations participating in the opera telephone inquiries. The care team con tion of the airport documents the sists of volunteer employees of Fraport AG Safety responsibilities, methods, and operating and the Group companies in Frankfurt The Safety Management System (SMS) is procedures that are relevant o the ongo who are trained for the respective tasks. in place with the goal of preventing per ing development of operational safety. sonal injury and damage to aircraft, vehi For example, the SMS contains specifica The contingency plan for Frankfurt cles, or infrastructure due to accidents and tions for identifying hazards as well as Airport “FRA Emergency” documents technical defects. For example, anyone instructions for process and risk evalua which preparations have been made with access to the airside areas (apron and tions. Proactive recommendations are for various emergency scenarios and runway) must complete SMS training therefore possible with this system. The defines procedures to minimize the before they may enter the airside areas. SMS was last updated on December 11, impact. These include, in particular, the Emergency and crisis management is also 2017. The EASA Safety Manager follows rescue of humans and animals, the part of safety management. the guidelines of the European Aviation preservation of natural resources and Safety Agency (EASA) and enjoys a direct material assets, as well as maintaining Fraport AG is obligated to operate an SMS reporting right to the Executive Board. the airport’s operations. The FRA at Frankfurt Airport. It was established Emergency plan includes procedures based on EU Regulation 2018/1139, EU As a central reporting and alarm point to coordinate all internal and external Regulation 139/2014 and the relevant for security matters, Fraport AG operates bodies that deal with emergencies. guidance documents. With the SMS, a security control center at Frankfurt security incidents are recorded and evalu Airport, which activates the emergency ICAO and EASA prescribe regular exercises ated, and potential vulnerabilities are and crisis management, if required. The at the international airports to train for identified. It is meant for all organizations airport fire department, medical services, the handling of emergencies and other and individuals with access to the airside ambulance service, and the security security-related scenarios. These training Sustainability Report 2018 Governance 69

exercises are prerequisites for obtaining measures at the airports aim to prevent The education and training of all security an operating license. Each respective attacks, such as hijacking, acts of sabo personnel takes place in accordance operating company is responsible for tage, or terrorist activities. with Group-wide regulatory and internal carrying out the procedures. requirements. At the Frankfurt site, the In Germany, passenger and baggage training requirements apply to the secu In November 2018, Fraport AG together checks are part of the central functions of rity personnel of both Fraport AG and with Lufthansa, the Regional Health security according to Section 5 German FraSec. FraSec carries out access checks Department in Frankfurt, the Frankfurt Aviation Security Act (LuftSiG). They lie for vehicles and people, and they check Fire Department, the Special Isolation within the jurisdiction of the German people and goods at access points to Ward of Frankfurt University Hospital, and Ministry of the Interior and are carried sensitive parts of the security area on emergency services and authorities at out by the German Federal Police and behalf of Fraport AG. Frankfurt Airport rehearsed procedures in third parties it commissions. At Frankfurt a medical emergency. In this case, the Airport, Fraport employees as well as exercise was not only required by ICAO employees of the Group company FraSec Fraport AG does not limit and EASA but also by international health and other private security providers cur its activities at Frankfurt regulations. Such exercises have no rently carry out airport security checks on impact on flight operations. behalf of the German Federal Police. Airport to the implementation of legal requirements, and The scenario of the exercise was based According to Section 8 LuftSiG, all on the event that two passengers exhibit buildings and the site must be designed develops measures in agree symptoms of a contagious infection in such a way that the operation of the ment with the competent while on a flight to Frankfurt. After a airport can be protected against attacks fictional landing scenario, the doctors of on the security of air transport and the authorities responsible for the Regional Health Department and proper implementation of all security maintaining the high safety Fraport AG practiced the processes on measures is ensured. This applies, in board. The further medical treatment of all particular, to the access controls to the standards. passengers as well as the transfer of infec airside areas as well as controlling persons, tious passengers with special Fire Depart carried objects, and vehicles before ment vehicles to the Special Isolation Ward entering the security area. It also includes For example, the fence surrounding at Frankfurt University Hospital were also fencing, identification cards, training of Runway West was upgraded with part of the exercise. The results will be personnel, as well as the secure transport electronic sensors in 2018 that auto used for further education and training. of controlled luggage which protects it matically report every touch. In addition, from unauthorized access. These security Fraport AG tested a vehicle for auto Security measures are the immediate responsibil nomous fence controls in cooperation Both international and European regula ity of the airport operator. They are pre with the Fraunhofer Institute. As an tions contain guidelines on the structural sented in an air safety program approved additional measure, a security-awareness design of airport infrastructure for the by the Hessian Ministry of Economics, campaign using various media was purposes of defending against attacks on Energy, Transport and Regional Develop launched to raise awareness regarding the security of air transport. The security ment as the supervisory authority. security among employees at the airport and encourage them to report any incidents to the security control center. While the focus in 2018 was on security measures at terminals, in 2019 safety will be given a greater priority.

As the operator of Frankfurt Airport, Fraport AG assumes responsibility for the task of exchanging all information relevant to security and for ensuring the continuous communication and close cooperation of the organizations responsible for security. In terms of work processes, regular weekly or monthly meetings are held with airlines, security service providers, and authorities for this purpose. Several times a year, Fraport AG invites managers of these companies as well as authorities to an informal meeting to exchange information. 70 Economic enhancement Sustainability Report 2018

Economic enhancement

We see our economic enhancement as the continuous improvement of our corporate value, securing and improving profitability, while maintaining a financial balance. The objective of economic enhancement is to achieve profitable growth and the long-term generation of positive value added in all non-regulated business fields. We control the development of the Group according to the principles of value-oriented management in this respect. Our main parameter in this regard is Fraport value added. 1)

1) Fraport value added means the difference between adjusted EBIT and capital costs (= Fraport assets × cost of capital). Sustainability Report 2018 Economic enhancement 71

Customer satisfaction and product quality

Strong orientation towards customers and service. Increasing the Group’s competitiveness and securing Frankfurt’s role as a hub.

Our goal: The best service for all customers

The customer comes first for Fraport. This Passenger satisfaction is also important for the airports in Varna and Burgas, the is also reflected by the mission statement the international Group companies. The satisfaction level was nearly 74%. Here “Gute Reise! We make it happen.” The aim fully consolidated Group airports that are the system of collecting data used by of the strategy is to establish itself as operated through concession agreements Fraport AG was applied for the first time Europe’s best airport operator and also to are contractually obliged to carry out in fiscal year 2018. In the new system, set global standards. This ensures the surveys on passenger satisfaction. This is the previous year’s level of 97% resulted development of the company’s value and measured at the different sites using in a satisfaction rate of 82%, a decrease competitiveness in the long term. The various key figures. Where appropriate, of 8 percentage points. While satisfaction target is to win over the main customers, this system of collecting data is to be at Varna Airport increased, it deteriorated i.e., passengers, airlines, the freight com harmonized in the medium term. in Burgas due to the high utilization rate munity, and retail concessionaires, with of the terminal in the summer. attractive offers and the best service. At the Passenger satisfaction at Lima Airport Frankfurt site, Fraport works closely, was 94% in 2018 (2017: 82%). Travelers Despite significant passenger growth, the among others, with the Federal Police to reacted positively to various improve number of complaints in Ljubljana rose ensure that security and passport control ments to the quality of services. For only slightly to 81 (previous year: 64). In processes are efficient and that a high example, customs clearances, the look March 2018, Fraport Greece launched an volume of passengers is handled in a and feel of the public areas of the termi expanded market research program at all timely manner. nal, and retail offers were improved. At 14 airports. Based on these survey results 72 Economic enhancement Sustainability Report 2018

in summer 2018, all airports received Terminal 3, passenger satisfaction should and security companies in an effort to overall grades, despite on-going construc be at least 82.5% from 2021. From 2025, avoid long waiting times for passengers tion, of better than 3.00 (on a scale of Fraport AG’s target is at least 85% based at the security checkpoints in the future. 1 to 5, where 1 is very poor and 5 is on the complete capacity increase from excellent). The three top ranked airports Terminal 3. In Frankfurt, passenger satis The service program “Great to have you were Rhodes (4.06), Aktion (3.94), and faction is mainly recorded using surveys. here!” launched in 2010 has increased Kefalonia (3.86). At the two Brazilian The global satisfaction of passengers at global passenger satisfaction at Frankfurt airports Fortaleza and Porto Alegre, pas the Frankfurt site was 86% in 2018, one Airport significantly. As part of five sub- senger satisfaction will be measured percentage point above the level of the initiatives, directions and signposting, within the scope of the concessions guide previous year (previous year: 85%). ambiance and convenience, and the range lines in the future. The initial results are of relaxation, work and entertainment expected for the second quarter of 2019. options on offer in the terminals were all With 69.5 million passen significantly improved. Most of the mea In order to guarantee service quality gers in 2018, Frankfurt sures were successfully completed in while traffic volume increases, and to 2018. Individual measures, such as the meet passengers’ and airlines’ increasing Airport recorded strong renovation of the sanitary facilities, will requirements, Fraport is conducting growth of 7.8% compared continue in fiscal year 2019. At the same extensive expansion and modernization time, in 2018, approximately 1,100 measures at the Group airports. For to the previous year. employees completed training within the example, a new terminal and a second scope of the “Service Excellence” pro runway will be built at Lima Airport. gram, in order to further improve hospi This resulted in increased waiting times tality and service orientation at Frankfurt Frankfurt Airport, the site with the most at security checkpoints during peaks in Airport. In 2018, passenger satisfaction passengers, is a particular focus in the traffic (particularly during school vacations regarding the hospitality of airport staff Group portfolio. The following will there and public holidays). This was reflected, was 91%, which represented a significant fore discuss the service quality manage among other things, in an increase in the increase (previous year: 85%). ment implemented at that site. number of complaints about the security inspection process. Passenger satisfaction Fraport has also been directly exchang Passenger satisfaction is considered the with waiting times at security checkpoints ing ideas with Deutsche Lufthansa, the most important criterion for service quality. was 80% in 2018 (previous year: 81%), security companies working at the Global satisfaction describes passengers’ while satisfaction with personnel at Frankfurt site, retail concessionaires and satisfaction with the services offered and security checkpoints was 82% in 2018 other service providers, and Deutsche the overall service at Frankfurt Airport. (previous year: 82%). Despite the Bahn regarding service, hospitality, and Fraport is committed to the target of main excellent results for most key figures in customer satisfaction in the Service taining and increasing customer satisfac passenger satisfaction in fiscal year 2018, Quality Committee since 2016. The first tion continuously. Despite the expected the focus is on improving performance important milestone was the definition temporary overload of terminal infrastruc particularly at security checkpoints. and approval of the Service Guidelines for ture due to traffic growth in the next few Fraport is cooperating closely with the FRA. In these guidelines, the partners years, Fraport AG aims for a target of at authorities of the German Federal Minis reiterate their desire and their joint least 80% global satisfaction at Frankfurt try of the Interior, Building and Commu responsibility to strengthen the Frankfurt Airport. With the inauguration of Pier G of nity (BMI), the German Federal Police, site and to further develop service quality and trusting cooperation. The goal is to ensure that common passen gers, customers, and guests retain a positive impression of Frankfurt Airport in addition to improving global satis faction of the passengers, the willingness to recommend Frankfurt Airport, satis faction with the hospitality, and improv ing the sense of security.

The reliable loading of luggage for departing flights and the fast delivery of luggage to the baggage claim for arriving flights have a major impact on customer satisfaction. The baggage connectivity figure provides information about the percentage of baggage at Frankfurt Airport that is loaded on time in relation to the total departing bag gage. A high level of connectivity proves the good quality of baggage processes, Sustainability Report 2018 Economic enhancement 73

Top ten in the Skytrax ranking

Another parameter for measuring customer satisfaction and service quality at Frankfurt Airport includes the annual ranking of the top 100 airports by the consultancy Skytrax. Frankfurt Airport was ranked tenth in 2018 worldwide, based on online passenger surveys (2017: tenth place).

which is one of the main responsibilities at its current high level in the future An essential component in implementing of Ground Services. This is particularly coupled with increasing number of the digitalization strategy and enhancing important because Frankfurt as a hub has baggage items, Fraport is constantly the customer experience in retail is the a high proportion of transfer baggage working on optimization measures introduction and development of pay with a transfer share of more than 55%. that are closely coordinated and imple ment methods via cell phones or tablet mented with airlines within the scope computers. For many travelers from The objective is to achieve a long-term of regular performance discussions. In China, shopping for international brands baggage connectivity of more than order to maintain baggage handling at is an important part of their stay in 98.5%. In the past fiscal year, baggage a high level given the strong traffic Europe. The shops at Frankfurt Airport connectivity amounted to 98.4% and growth in fiscal year 2018, recruitment are a popular destination, and they was therefore 0.1 percentage point of personnel was significantly expanded. remain the focus of our strategic devel below the previous year’s and the target On the other hand, IT processes were opment. For this reason, Frankfurt Air figure. In particular, delayed flights and optimized to ensure the stability of port, in addition to its website in poor weather conditions had a negative the IT infrastructure of the baggage Chinese, has been offering the Alipay impact on the loading of baggage on conveyor system, even when processing and WeChat Pay payment functions at time. In order to maintain connectivity high volumes. its retail tenants since 2018. Passengers 74 Economic enhancement Sustainability Report 2018

are therefore able to pay as usual, with Digitalization in processing airport, i.e., the baggage checking out having to exchange currency. The performed by ground services, flight and mobile payment functions are expected Ground Services also improves the ground terminal management services, and to be expanded in the future to accom handling processes through selected corporate security. modate additional target groups. digitalization projects. This should, for example, encourage passengers to make In the cargo sector, Fraport continuously We offer our airline customers at the more use of the self-service check-in so develops new products and solutions Frankfurt site comprehensive support and as to avoid any waiting times at the that position Frankfurt Airport as an inno advice on strategic and operational baggage counter. The passenger checks vation leader in the air freight industry. topics such as the commencement of in independently online and prints his or For example, the two freight processing flight operations, frequency increases, and her baggage tag at home or at the air companies Frankfurt Cargo Services GmbH slot allocation. With regard to developing port. The baggage is then checked in and LUG aircargo handling GmbH have routes, we support airlines from the analy independently at one of Fraport’s patent developed solutions in close cooperation sis of potential routes through to joint ed check-in counters. A new scanning with Fraport AG and the Freight Forward marketing activities, also in cooperation glove ensures optimized workflows in ing and Logistics Association of Hesse/ with partners from the tourism industry. baggage handling and on the luggage Rhineland-Palatinate designed to optimize In 2018, considerable passenger growth conveyors. The glove has an attached the collection and delivery processes of (7.8%) was achieved in particular due to scanner that enables employees to quickly freight shipments. The aim was to increase the strong development of Lufthansa, process the trailer while, at the same the level of standardization of the pro Condor, Ryanair, TuiFly, Air Canada, time, allowing them to use their hands to cesses in order to improve predictability and United. We include our airline cus handle the luggage. and create greater transparency. Both tomers when dealing with important companies introduced a uniform ramp matters in the development of the air Fraport AG measures the success of the control system for all shipping and port, such as regarding Terminal 3 and measures for the airline customers by collecting carriers and freight forwarders the management of ongoing perfor using the Customer Service Index Airlines beginning in 2018. Another positive mance measures. The Customer Service KPI. The aim each year is to achieve the effect was the increase in the number of Center (CSC) offers all airline customers level of the previous year. At 73.9%, the registered businesses in the cargo com a direct point of contact for questions figure for 2018 was slightly below the munity system FAIR@Link from 130 to regarding operations. In addition to previous year’s figure of 75.4%. Bottle over 500, and 78% of the cargo was advance information on construction or necks in the aviation sector and the result being preregistered after just one month. operational changes, the CSC provides a ing problems in operations are reflected central point of contact for the airline in this result. The survey primarily The shipping platform for hazardous stations through regular customer visits. includes the airline-relevant areas of the goods “INFr8” was developed by Sustainability Report 2018 Economic enhancement 75

Fraport AG together with the IT service was successfully sent in September 2018. process has already been recognized and provider Dakosy and the initial users The pilot project is initially scheduled for approved. To introduce this in Germany, Lufthansa Cargo and Panalpina. The six months. the method is currently being tested in portal transfers all consignment data cooperation with the German Federal electronically through just one interface Tracking dogs inspect trucks Aviation Authority, and initial approval from the consignor to the other parties has been requested for the Frankfurt site. involved in the processing chain. The In addition, Fraport AG, the Group com processing of hazardous goods is thus pany Frasec, and its subsidiary K9 Tedd In addition to numerous events with our completely digitalized. Errors in docu are working on providing new aviation local partners, Fraport AG has been mentation and the associated delays security procedures at Frankfurt Airport. increasingly organizing conferences with and osts are therefore avoided. The In the so-called REST process (Remote carriers and consignors both in Germany special feature of “INFr8” is that all opera Explosive Scent Tracing), explosives and abroad since 2017 in order to address tors in the air freight processing chain detection dogs are used to inspect air this target group and better understand are connected, from the sender to the samples from trucks. The aim is to check their needs. The goal is to expand the recipient. The first shipment with an air freight quickly, cost-effectively, and international flow of goods processed via electronic dangerous goods declaration reliably in future. In the Netherlands, the the freight hub in Frankfurt. 76 Economic enhancement Sustainability Report 2018

Economic efficiency

Ensuring the profitability of the Fraport Group through yield-oriented capital expenditure and an efficient use of existing resources.

Record levels of revenue and profit

Fraport AG has continued on its growth retail business area in the terminals as the previous year to approximately path in the 2018 fiscal year, recording well as online sales, deceased by 7.4% to – €60 million, which led to a Group new record levels of revenue and profit. €3.12 compared to the previous year. result of €506 million (+40.6%). Group revenue increased by 18.5% Influences on retail revenue included, in in the 2018 fiscal year to just under particular, the above-average growth in Positive free cash flow €3.5 billion. Adjusted for the revenue in passenger numbers on European routes, connection with the capacitive capital where passengers tend to spend less, as Operating cash flow fell slightly by 2% expenditure based on the application of well as capacity bottlenecks at the termi to €802 million. The main reason for IFRIC 12, revenue increased by 7.8% to nals. In addition, the devaluation of this were changes in net current assets as over €3.1 billion. At the Frankfurt site, various currencies compared to the euro at the balance sheet date. Adjusted for this development was caused, among led to a loss of purchasing power. these changes, cash flow from operating other things, by higher revenue from activities rose significantly by 18.8% to airport charges, a rise in earnings from Besides the positive development in over €845 million (adjusted value 2017: ground services and infrastructure operations, the disposal of shares in €711 million). As expected, the free cash charges due to an increase in traffic Flughafen Hannover-Langenhagen flow declined significantly due to higher volume. Beyond the Frankfurt site, the GmbH (+€25 million) increased Group capital expenditure at the Frankfurt site Group companies Fortaleza and Porto EBITDA and Group EBIT, coming in at and in international business (– 98.3%) Alegre in Brazil, for which the takeover of €1,129 million (+12.5%) and around and at €7 million was just slightly positive. operations took place on January 2, €731 million (+13.6%), respectively. The 2018, and Fraport Greece contributed disposal of shares as well as the strong In total, net financial debt increased significantly to revenue growth. development of the Group company only slightly in the past year to around Antalya, which is accounted for using the €3.55 billion (+€33 million). Among The net retail revenue per passenger, a equity method, improved the negative other things, this development is also key figure on the development of the financial result from – €137 million in due to higher cash and cash equivalents Sustainability Report 2018 Economic enhancement 77

resulting from the disposal of shares that is used to generate the EBIT Hannover-Langenhagen GmbH, the in Flughafen Hannover-Langenhagen (value-oriented management principle). takeover of operations of the Brazilian GmbH coupled with an increased need In the past fiscal year, assets of airports in Fortaleza and Porto Alegre, for funds in connection with the financ €7.69 billion (“Fraport assets”) were and the positive operating performance ing of airport expansions in Greece and offset by an EBIT including earnings of the Group company Antalya, which Brazil. Relative to the shareholders’ before taxes of the Group companies is accounted for using the equity equity (excluding the minority interests accounted for using the equity method method. The economic enhancement is and the amount planned for dividends), of close to €857 million. Based on a also visible in the “ROFRA”, the return this means that leverage (gearing ratio) pre-tax cost of capital (WACC) for on Fraport assets. This was 11.1% in the is around 89%. Net financial debt was Fraport of 6.5% (previous year: 6.7%), past fiscal year and exceeded the WACC 3.1-times EBITDA. this resulted in ongoing capital costs by 4.6 percentage points. before taxes of around €500 in 2018 to ROFRA of 11.1% signals economic achieve this adjusted EBIT. Detailed information about the devel enhancement opment of earnings in the past fiscal The value added before taxes of year as well as the forecast for 2019 To permanently increase the Group’s €357 million means that Fraport once can be found in “The Group’s Results value, the Executive Board specifically again earned its capital costs in the of Operations” and “Business Outlook” draws parallels between the develop past fiscal year and “created value” sections of the 2018 Annual Report. ment of the results of operations and Group-wide. In addition to the strong the asset and financial position. In this growth in traffic in Frankfurt and at Selected key financial figures can context, Fraport calculates the ratio of the Group airports, this improvement be found starting on page 118 of the operating result achieved before to value added is attributed to the this report. interest and taxes (EBIT) to the capital disposal of shares in Flughafen

EBITDA margin 40.8% 34.2% 32.5%

3,478

2,935

2,586

1,129 1,054 1,003

506 400 360

in € million 2016 2017 2018

Revenue EBITDA Group Result 78 Economic enhancement Sustainability Report 2018

Growth and development in the Group

Growth, consolidation, and expansion of the Group’s portfolio.

Another record year in aviation

Building on the good year with strong Tourist destinations were also the main capacities and the required level of growth rates in 2017, the past fiscal year focus outside of Europe. International infrastructure for the long term. was also marked by record numbers. traffic grew by 2.8%. Here, the markets Fraport AG will meet the needs of the Both in Frankfurt and at the Group sites, in northern and central Africa as well as growing passenger demand by moving in part double-digit growth in passenger Central America generated significant up construction of Pier G from the sec traffic was recorded. The Frankfurt site growth. Traffic to Thailand and Vietnam ond construction phase for Terminal 3. set a passenger record of approximately in the Far East increased. After planning permission was granted 69.5 million passengers. The previous for Pier G in August 2018, construction year’s total was exceeded by around will start in the spring of 2019. The 5 million travelers, or 7.8%. Significant construction of Terminal 3 involves an strike-related cancellations were not investment volume of approximately recorded. The month of July marked the €3.5 billion. highest monthly result with approxi mately 6.9 million passengers. Over the 7.8% Strong growth at key Group sites course of the year, the number of daily passengers exceeded the 200,000 mark At Ljubljana Airport, passenger numbers on 165 days, and on 13 days it even more passengers in in the 2018 fiscal year were up 7.7% reached a value of over 230,000 travel Frankfurt compared to the previous year at around ers. This significant growth underscores 1.8 million. The growth was based to a how attractive Frankfurt Airport is. large extent on the addition of new routes by Adria Airways. In addition, Both the offer of new travel destinations In contrast, the Cargo volume in 2018 passenger numbers showed positive as well as frequency increases were fell slightly below the previous year’s development on the majority of routes behind the increase in demand. Domes volume by 0.8% with around 2.2 million on offer. Short and long-term capital tic traffic rose noticeably by 4.8%. This metric tons. This result was in line with expenditure is necessary to increase the growth was driven primarily by travel to economic development. quality of service at the airport and and from Berlin. The distinct growth of improve operational processes. The the traffic regions of southern and east In particular, the expansion and modern largest capital expenditure is the expan ern Europe led to double-digit growth ization programs contribute to main sion of the terminal, which is scheduled for Mediterranean airports, in particular taining and improving the Frankfurt to be fully operational for the summer Turkey as a holiday destination. Conse site’s international competitive position. flight plan 2021. quently, European traffic was once again Terminal 3, which is scheduled to take the largest driver of growth at 12.1%. up operations in 2023, ensures airport Sustainability Report 2018 Economic enhancement 79

St. Petersburg

Frankfurt Ljubljana Varna FRA Burgas Cleveland Pittsburgh Antalya New York , Nashville Baltimore Xi an Kavala Thessaloniki Delhi Hong Kong Corfu Skiathos Mytilene Aktion Kefalonia Samos Zakynthos Mykonos Kos Santorini Rhodes Chania

Fortaleza

Lima

Porto Alegre

The Group companies Fraport Brasil S.A. of this will be spent on a comprehensive government. The construction of a new Aeroporto Fortaleza and Fraport Brasil S.A. expansion and extension project. Five terminal, a new runway, including Aeroporto Porto Alegre have been operat new terminals will be built, and six aprons and taxiways, as well as other ing the respective airports in Brazil since terminals will be expanded at the sites. peripheral infrastructure is planned. January 2, 2018. The two companies A priority area is also expanding the offer The volume of the capital expenditure is welcomed 14.9 million passengers (+7.0%) of shopping and services. The first air expected to be around US$1.5 billion. in 2018. In Fortaleza, international traffic ports where the measures will be com The second runway is scheduled to benefited primarily from the creation of an pleted in 2019 are Chania, Zakynthos, be completed in 2021/2022, while the Air France/KLM hub (+61.7%) together and Kavala. After the ground-breaking terminal will be finished no later with the Brazilian airline Gol. Capital ceremony in September 2018, the new than 2024. expenditure on airport infrastructure of Terminal in Thessaloniki is now under around BRL 2.3 billion is expected in the construction. It is scheduled to open in The Bulgarian airports in Varna and first five years of the term of the con 2021. In total, around €100 million is Burgas served some 5.6 million passen cession. In Fortaleza, significant capital being invested in Thessaloniki Airport. gers in 2018, thus around 12.2% more expenditure will go towards modernizing than in the same period of the previous and expanding the terminal. Capital Growth in Lima at 7.3% year. Mainly travelers from Poland, expenditure priorities at Porto Alegre Germany, and the United Kingdom, but Airport will be to extend the runway in In Peru, the Lima site continues to also strong domestic traffic, contributed addition to modernizing and expanding benefit from the relatively high economic to the growth in traffic. The number of both terminals and the apron areas. growth rate of the country as well as Russian passengers in Burgas declined, ever-increasing tourist demand. The air though they still represent the largest With just under 29.9 million passengers port benefits from a good geographical passenger group (– 14.0%), while the in the 2018 fiscal year (+8.9%), the location, making it particularly attractive Varna site recorded moderate growth in 14 regional airports of Fraport Greece for transfer traffic between South and this regard. benefited to a great extent from the North America. Jorge Chávez Airport is appeal of Greece as a tourist destination. Peru’s most important airport and was At Antalya Airport, around 32.3 million At nearly 77%, the high share of inter once again among the ten largest airports passengers in the 2018 fiscal year signi national travelers demonstrates the in South America with over 22.1 million fied an increase of 22.5%, which was an importance of Greece as a holiday desti passengers (+7.3%) in the last fiscal year. all-time high. While the number of pas nation. The 40-year concession agree Due to passenger growth, the site’s sengers traveling within Turkey increased ments budget for capital expenditure of capacity is reaching its limit. In October by 2.2% to over 7.5 million, the number approximately €400 million on airport 2018, the land needed for the expansion of international passengers fell signifi infrastructure in the first four years. Most of the airport was granted by the cantly by 30.3% to around 24.8 million. 80 Economic enhancement Sustainability Report 2018

Ideas and innovation

Developing new products and more efficient processes.

Service robots and first drone flights

As a service group, Fraport does not in the year under review (previous to fly drones in a predefined area on the conduct research or development in the year: 81), which particularly led to Terminal 3 construction site. Methods narrower sense. However, the objective improvements to operations that do not were developed for the safe and effec remains to introduce new technologies have a direct financial effect. Digitaliza tive use of drones in normal operations and continuously optimize complex tion and automation capabilities were in cooperation with Deutsche Flug processes to meet a wide range of custom also addressed. In addition, the presen sicherung GmbH and the relevant state er demands. In order to make optimum tation of ideas has been successfully aviation authorities. Drones may be use of all potential, the company’s idea integrated into the leadership culture, so used, for example, for surveying and management system brings together much so that ideas from some of the monitoring the progress of construction employee creativity, while innovation areas are implemented directly without sites, with advance notice of five days. management is oriented towards projects involving idea management. The benefits Other possible uses of drones as well as with partners or customers as well as close of the submitted ideas amounted to an extension of the approved applica cooperation with scientific institutions. €126,000 in the reporting year. This tion areas are being continuously tested. demonstrates the important role played Overall, 475 ideas were submitted to by the experience and internal knowl Initial walking tests in the field of the Group’s idea management in the edge of the staff. robotics and artificial intelligence were reporting year (previous year: 596), 24 of conducted in cooperation with Furhat which were from Group companies at In 2018, Frankfurt Airport was the first Robotics and DB Systel. In the first half the Frankfurt site. 49 ideas were realized German airport to be granted approval of 2018, passengers in Terminal 1 were Sustainability Report 2018 Economic enhancement 81

In addition, Fraport AG has expanded its digital services to include more new information channels: Passengers can quickly and easily find out about the airport via Twitter from the account Airport_FRA. On Facebook, the well- known transformation robot FRAnky answers questions from passengers and airport visitors. The messenger bot can be contacted directly via the link m.me/askFranky, by scanning the profile image via the direct link, or by looking up “Frankfurt Airport-FRAnky” on Face- book. It assists in requests pertaining to flight searches, sends updates on the flight status, and provides information on restaurants, shops, and service facilities. able to turn to “FRAnny” for simple positive results of the initial run, the With a view towards further developing information on flights as well as services, FRAnny project is scheduled to continue activities with other companies from shops, and restaurants in the terminal in 2019. In a further field test, an opti- the aviation industry as well as based on during a four-week trial. The service mized version will be used which also “best practice” companies, Fraport’s own robot speaks German and English, provides intermodality and offers support “innovation.hub” will be moved to a new responds to its human counterpart, and to arriving passengers in addition to area in Terminal 2. With a larger surface can show different facial expressions information on departures. However, area and simplified access from the public via screen projection. The robot enjoyed FRAnny cannot nor ever will replace area at the terminal, more focus will be a very high level of acceptance among people as manpower. placed on cooperation with companies guests and passengers. Based on the and scientific institutions.

With the air taxi to the city center

Fraport AG and Volocopter GmbH are developing concepts for the use of air taxis at airports. The main focus of the strategic cooperation is the development of adequate airport infrastructure and passenger processes. One example of this is a so-called Volocopter port. In the future, they might be able to link node points in the cities with the airport.

Fraport brings many years of experience in airport management to the project, in particular, in the areas of ground infrastructure, ground handling, as well as terminal and passenger services. Within the scope of the “FraDrones” program, for example, Fraport has already tested different scenarios for the operational use of drones. The air taxi called “Volocopter” is based on drone technology, can accommodate two people, and is ideal for urban transport due to its silent and emission-free operation. The initial flights from the airport to destinations in the Rhine-Main area are expected to commence in 2024. 82 Employees Sustainability Report 2018

Employees

In light of the growing challenges such as international competition in the air transport industry, as well as passengers’ and airlines’ expectations, the objective is to foster our employees’ personal, professional, social, and methodological skills. This allows us to ensure a high service quality as well as to secure attractive jobs in the long term. Sustainability Report 2018 Employees 83

Attractive and responsible employer

Protection of jobs and provision of a working environment that is characterized by diversity, equal opportunities, and respect. Offers regarding the work-life balance and development opportunities to recruit, qualify, and retain dedicated personnel.

Responsibility for over 23,000 1) employees

Fraport AG has a long tradition as a Compact, the OECD guidelines, and the The fundamental importance of the company with a social perspective and a ILO Core Labor Standards. In 2013, human resources strategy is taken into partner-centered approach. Group-wide, Fraport published its own Code of Con account by the three key non-financial Fraport aims to remain competitive at all duct to anchor these principles even performance indicators of employee sites and in all areas and thereby secure more firmly within the company. This satisfaction, women in management jobs with fair and just working condi code commits employees to compliance positions, and sickness rate. The Execu tions. This involves providing fair wages with these fundamental principles. tive Director of Labor Relations is and salaries, and a package of benefits informed at quarterly meetings with the that goes beyond pay. Fraport offers a Boost personal skill sets HR managers of the Group companies, high level of job security, good working among other things, of the development conditions based on collective bar Fraport Group has over 23,000 1) employ of these key figures at the Frankfurt site. gaining agreements, professional and ees. Given the growing challenges, such personal development options, and a as increasing international competition As an attractive and responsible employer, highly developed corporate ethic. in the aviation industry and passengers’ Fraport aims to provide good working and airlines’ increasing demands, and conditions and high levels of employee The Fraport Policy forms the overarching the continuous focus of the Group satisfaction. This figure is calculated structure for all commitments and topic- on earnings, the aim is to organize the annually by surveying employees of specific codes of the Group. Pursuant personnel structure in such a way that Fraport AG and the Group companies. to responsible corporate governance, this competitive pressure can be All staff-intensive Group companies in Fraport has made a commitment to withstood. Employees’ personal and Frankfurt as well as Group companies comply with internationally recognized professional skills are boosted Group- Lima, Fraport Slovenija, and Twin Star standards of conduct, such as those wide by training measures. This allows took part in the survey in 2018. In future, defined in the principles of the UN Global Fraport to ensure a high service quality. the survey will be expanded to all other

1) In addition, around 2,600 employees in joint ventures. 84 Employees Sustainability Report 2018

key Group companies. In this respect, it improvement. Fraport aims to maintain at the many airport sites and the is important to take cultural conditions employee satisfaction at a stable level increased burden on operational into account and agree on a common Group-wide and continually improve the employees in particular due to the standard for assessment. rating in the long term to exceed 3.0 growth in traffic. (index value in line with German school At Fraport AG, the results are used to grading system). The average grade for identify potential for improvement satisfaction by the employees of the As far back as 2007 and to derive appropriate measures in Fraport Group was 2.76 in fiscal year Fraport published its each area. They are documented by 2018, and therefore slightly above the the central unit Personnel Services; adjusted previous year’s figure of 2.85 “Diversity charter” – which controls the implementation and (previous year reported: 2.87, the a company initiative to processes them for the sections or previous year’s figure was adjusted German Group companies. In individual for the Group company FCY). At promote diversity in cases, the measures and the intended Fraport AG, the figure should be better companies and institu improvements can be included in the than in the previous year. target agreements with executives. The tions. strategic relevance of employee satis The average grade for satisfaction by the faction is also clear given it is taken into employees of Fraport AG in the past account in the Executive Board’s fiscal year was 2.86 and thus slightly The Group agreement “Conduct of remuneration. improved year on year (previous year: Partnership, Diversity and Equality in the 2.88). Fraport has stepped up its recruit Workplace” formed the platform for The key figure is calculated from nine ment and training activities in these principles such as freedom from discrimi aspects of satisfaction and the detailed areas to meet challenges such as the nation and equal opportunities. The analyses show potential areas of tangible impact of demographic change company agreement includes explicit Sustainability Report 2018 Employees 85

As a responsible employer, Fraport respects and promotes personal diversity and attaches great importance to ensuring that this is reflected in the way employees interact with each other. Diversity is a key goal for Fraport, which the Group systematically tackles as part of its diversity management.

Diverse cultural backgrounds, international experience and gender aspects enrich the collaboration and promote inno vation and creativity. This enables Fraport to flexibly respond to the changing requirements in the international markets and benefit from them.

definitions of values as well as specific levels to 30% by 2021. Fraport respects increasing the proportion. This includes internal regulations and structures. national laws and does not want to the strategic succession planning across impose any quotas based on German law all levels of management as well as Fraport places a particular focus on at the foreign Group companies. talent anagement and the Potential promoting women in management Assessment Center. positions at the two levels directly below Focus on women in management the Executive Board as well as at the positions The long-term measures that are respective management levels at the already proving to be successful include German Group companies. For reporting In fiscal year 2018, the proportion of the Cross Mentoring Program, internal purposes, executives who report directly women in management positions in mentoring and coaching within the to the Executive Board are categorized Germany was 26.0% (previous year: context of the continuous development as level 1. Executives who report to this 28.0%). The proportion of women in of female executives. This includes first level of leadership are categorized as management positions in Fraport AG in offers that permit holding an executive level 2. Regarding the Group companies 2018 was 25.0% (previous year: 27.1%). position on a part-time basis within the in Germany, the levels of management The slight decline in the rate at both scope of an 80% or 90% workload. In are categorized based on comparable Fraport AG and the German Group the future, it will also be possible to work positions at Fraport AG. This corresponds companies is due to organizational and within the framework of an interim to the objectives in the “Act on Equal personnel changes. management, as a result of which it will Participation of Women and Men in be possible to expand one’s manage Management Positions in the Private and Fraport has worked on increasing the ment experience over a limited period of Public Sector”. The company remains proportion of women in management time. For job vacancies, suitable female committed to its objective to increase positions for many years. Particular candidates are also actively approached the proportion of women in manage focus is placed on all staff development and systematic development and career ment positions in Germany across both processes that have an influence on paths are presented. 86 Employees Sustainability Report 2018

Occupational health and safety

Maintaining and promoting the physical and mental capacities of our employees.

Good prevention culture

Occupational health management in the ments. In total, around 2,000 contracts conclusion that there are motivation- Fraport Group has always focused on were concluded with employees and related absences, as these working days preserving the health, performance and their relatives. All employees in Germany are compensated by special bonuses. therefore productivity of employees in were given a “Fitbox” with suggestions In 2017, new evaluation options for sick the long term. With its preventive for improving their own health. This leave and training for managers were nature, Fraport contributes to maintain also includes a calendar with suggestions developed and implemented. Since ing employee performance and prevents for prevention. Each month, a new topic 2018, every employee can obtain his or work-related health risks. Employees is presented and accompanied with her personal sickness rate as well as that are regularly informed about health- corresponding information and activities. of his or her section on the intranet. maintaining measures and conduct and If possible, given the state of operations, their workplaces are ergonomically and management has given approval, Additional shifts at Frankfurt Airport designed in the operational and admin Fraport AG employees can visit the istrative areas. health lectures during working hours. The only possibility to react to increased volume of traffic at Frankfurt airport was Fraport AG’s multi-award-winning occu The effects of demographic change in through additional shifts. Fraport AG pational health management initiates a the Group and the increase of the provided an attractive financial incentive wide range of health-promoting activities average age of employees contribute, for acquiring additional services under and measures with various focal points. among other things, to a continuous the motto “Growth in 2018 – Working For example, cooperation with gyms increase in the number of long-term Together”. Food and beverages were made it possible for employees to exercise illnesses. However, high levels of absen provided to employees in highly stressful close to their place of residence. Those teeism, especially in the operational units work areas such as aircraft handling. who exercise regularly are rewarded with and Group companies in Germany, Workers at the security checkpoints were a contribution to membership fees. cannot solely be attributed to health also given massage vouchers. In 2018, the premiums for the collective issues, workload and age-related effects. operational supplementary health It appears that absenteeism in the Fraport evaluates the effectiveness of insurance were expanded to include operational areas decreases significantly the measures by continuously analyzing greater dental prostheses reimburse on public holidays, which leads to the the sickness rate, among other things. Sustainability Report 2018 Employees 87

The calculation excluding absences beyond sick pay (extended sick leave) primarily reflects the development of short- and medium-term illnesses.

Fraport focuses on limiting or reversing the sickness rate, which is increasing due to seasonal and age-related absences, among other things. The target is to have a maximum rate of 7.2% in both the Group and at Fraport AG by 2025.

In 2018, the sickness rate in the Group was 7.4% (previous year: 7.5%). This development is particularly due to the improved sickness rates at the well- staffed Fraport AG and Group company FraSec. At Fraport AG, the sickness rate improved from 7.6% to 7.4%.

In the Ground Services strategic business unit, which has a large above all to raise employees’ awareness complete for the Group companies number of staff, as well of safe conduct in operational areas. within the scope of the German Occupa In 2018, the focus of the project tional Safety and Health Act. The Group as Airport Safety, the “Mindful through ‘18” was placed on companies Lima, Fraport Slovenija, sickness rate decreased reducing accident-related lost working Twin Star, and Fraport USA have already days and the cost of damage to vehicles provided confirmations. In addition, a noticeably. and equipment. As an additional self-assessment conducted at the inter measure, the project “Mindful through national Group companies in 2017 ‘18” will be followed by project “Zero” revealed that key aspects of occupational A strong prevention culture means that, as part of the agenda for some of the safety and health according to German in addition to health management, Ground Services for 2019. Behavioral legislation have been applied and imple occupational safety is systematically health and safety will be strengthened in mented. integrated into the company’s processes this section which is responsible for the and structures as well. Accident preven loading and unloading of aircraft as well Accidents reduced at Fraport AG tion not only serves personal safety but as internal transport. is also of great importance from an Fraport measures the effectiveness of economic point of view, for example if In accordance with the Occupational occupational safety measures by the work equipment, vehicles, or facilities are Safety Act, Fraport has implemented an number of accidents at work, among damaged or if employees are unable to occupational safety unit under the other things. The target is to continually work due to illness. Strengthening the Executive Director Labor Relations, which reduce the total number of accidents personal responsibility of all employees advises and supports departments in at work per year and to achieve a “rate and management in particular is a top the further development of occupational per 1,000 employees” (number of priority. Comprehensive measures safety. The key principles for the Group reportable accidents at work per 1,000 to guarantee high occupational safety companies can be found in the occupa employees) of less than 25 within the standards are required, for example, tional safety and health management Group by 2020. Based on the total when handling hazardous materials, in manual. They are to be implemented Group workforce (permanent employees, Ground Services’ handling processes, independently by the Managing Directors apprentices, and temporary staff), the in maintenance, in internal transport and supplemented by company-specific rate per 1,000 employees was 26.1 and traffic, and during infrastructure rules in internal regulations. This require (previous year: 25.8). Fraport AG’s target construction activities. ment is valid effective immediately for rate per 1,000 employees is a figure Fraport AG and Group companies that under 20. It was 19.3 in 2018 (previous Driver safety training is offered to are allocated to the area of Occupational year: 24.1, as a result of late submissions, employees whose work involves driving. Safety and Health Act. Taking into there may be changes to the figures There are special occupational safety account the national laws, the scheme is reported for the previous year). The most seminars for managers, for example on an option for action for the international significant reduction in accidents was transferring obligations of the business Group companies. The procedures for recorded in the Ground Services Strategic operator. Targeted and temporary recognizing the occupational safety and Business Unit. measures and projects are intended health management manual are nearly 88 Community Sustainability Report 2018

Community

Fraport is internationally one of the leading companies in the airport busi ness and, with Frankfurt Airport, operates one of the world’s most important aviation hubs. Over 81,000 people work at Frankfurt Airport and 20,500 1) of these work solely for Fraport. As an active partner for the region, we support sports, social and cultural clubs, and institutions. Fraport has also always been committed to contributing to the reduction of aircraft noise pollution. We are continuously attempting to reduce noise pollution through active and passive noise abatement measures.

1) As at the balance sheet date 12/31/2018. Sustainability Report 2018 Community 89

Value generation and engagement in the regions

Positive contribution to the economic development of the regions in which we operate airports. Charitable involvement in the neighborhood of the airport and dialog with our stakeholders.

Corporate principle of corporate social responsibility

Airports are important business locations and retail. There is predominantly poten many other airports. The hub function and contribute directly and indirectly tial for growth in companies that offer plays a decisive role: More than half of to economic and social value creation. security services and at authorities. The passengers change planes in Frankfurt. For example, Frankfurt Airport is the people who live in the metropolitan That also makes the airport attractive largest local workplace in Germany with region around the airport also benefit as a cargo transfer location. About 40% almost 81,000 direct employees (as at from this. They not only benefit from of the over 2 million metric tons of December 31, 2015). The survey the short journey to the airport; many of freight per year is transported in the provides an insight into the sectors in them also work at a company that “belly” of passenger aircraft. Cargo which employees work at the site. benefits from being close to the airport. consignors benefit from the connections Accordingly, two thirds of employees offered at Frankfurt Airport, enabling surveyed work for an airline, in airport The total catchment area of Frankfurt them to get their goods to the destination operations, or in freight forwarding Airport includes approximately 38 million faster. This is why Frankfurt Airport is also and transport operations. Other sectors people within a radius of about 200 kilo one of the world’s most important sites include authorities and institutions, meters. The central location and the for air freight and is number one in catering, security services, personnel high demand mean that more interna Europe. This benefits the export-oriented services, consulting, hotels and tional and intercontinental destinations German economy, which needs the restaurants, freight handling, cleaning, can be reached from here than from connection to other markets. 90 Community Sustainability Report 2018

At home in the Rhine-Main region are combined into an independent Donation priorities include the promo department. In organizational terms, the tion of social and charitable institutions, Frankfurt Airport is the site in the Group competent central unit is assigned to particularly those that encompass with the largest traffic volume by far the Chairman of the Executive Board. measures relating to education, social and is also the location of the company equality, health, and the integration of headquarters. For Fraport, social respon The so-called “neighborhood frame marginalized groups in society. Employ sibility has been a corporate principle work” describes the geographical ees can also apply for donations as for many years. Fraport AG has therefore boundary for support activities. The patrons of their clubs. long supported numerous clubs and area is based on district and state institutions in the Rhine-Main region borders taking into account the most Sports sponsorship in the Rhine-Main in particular. important approach and takeoff routes. region includes both recreational and If these change, the neighborhood professional sports. Well-known names Fraport AG’s funding concept for its framework will also be modified – as was that have concluded long-term contracts community, cultural and social engage most recently the case when Runway with Fraport AG include the FRAPORT ment is “Active for the region”. It Northwest was inaugurated. The expan SKYLINERS and Eintracht Frankfurt. In primarily serves to boost clubs and sion allowed additional cities and the area of basketball, Fraport sponsors support volunteer work in the region municipalities to participate in the not only the German national division around Frankfurt Airport. All activities company’s support activities. team but also gives donations to support

Protecting the common swift

The Deutsche Gesellschaft für Mauersegler e.V. (The German Society for the Common Swift) in Frankfurt takes in injured and orphaned swifts at its clinic in Griesheim. The birds are looked after at the 180 sq m (approximately 1,940 sq ft) reception and care station, allowing the society to gain scientific insights about their way of life. In order to facilitate their reintegration into nature, volunteers strive to provide a feeding method that is appropriate for the species and in tune with nature. With its Environmental Fund, Fraport has spent around 20,000€ for care and feed within the last five years. Sustainability Report 2018 Community 91

Our corporate performance (gross value generation) in € million

Net value added distributed to:

1,182.3 Employees 202.3 Other operating expenses 834.3 Capital expenditure

Shareholders 146.5 (dividends) 3.698,5 130.5 State (taxes)

Lenders 127.8 (interest) 1,089.1 2 ,4 07.4 Changes in the Cost of materials – 14.0 financial position from the added value statement

the project “Basketball goes to school”. young refugees, other projects on Rhine-Main) programs are aimed at At the soccer club Eintracht Frankfurt, professional orientation and competence young people without formal training Fraport AG supports both the non-profit assessment in general education schools or young migrants. association and Eintracht AG with the are receiving more and more funding. affiliated soccer school. Fraport has supported nature and In addition to promoting vocational environmental conservation projects, In the fields of culture and education, training, the Foundation’s committees research, and environmental education Fraport is involved in the Rheingau Music have taken this social development as an since 1997 with the environmental Festival, among other things. There opportunity to extend the purpose of the fund. Its best-known project is the are also long-term partnerships with the Foundation to the field of “social integra RhineMain Regional Park, which extends Frankfurt cultural institutions Städel tion”. Since the Foundation only acts as between Rüdesheim, Wetterau, the Museum, Schirn Kunsthalle, and Liebieg a funding institution, it relies on close Kinzig Valley, and the Hessian Ried. haus sculpture collection. Overall, in cooperation with proven institutions of 2018 Fraport supported more than youth vocational training. These include Fraport is also involved in the Wirtschafts 1,500 projects run by various non-profit the Gesellschaft für Jugendbeschäftigung initiative FrankfurtRheinMain (Frankfurt associations and institutions by making e. V., an association dedicated to youth RhineMain Business Initiative), in donations and providing sponsorships employment in Frankfurt, the Evangelische which 150 companies participate. One totaling €6.0 million. Verein für Jugendsozialarbeit, an associa outcome of this cooperation is the tion for youth social work, the Verein für House of Logistics and Mobility (HOLM) ProRegion supports young Kultur und Bildung e. V., an association for competence center at Frankfurt Airport. professionals at career entry culture and education, and the Berufs bildungswerk Südhessen in Karben, an At the individual sites of the international Fraport has financially supported youths’ institute whose goal is to prepare youth Group companies, regions close to the and young adults’ integration into work for careers and vocational training. airport also benefit from the economic ing life since 1999 with the ProRegion performance and the donations made Foundation. The original objectives of the As one of the largest employers in Hesse, and sponsorship activities undertaken foundation were the provision of funding Fraport is also focused on helping young by each Group company independently. for the creation of additional training people integrate into the workplace with The companies and their value genera places or the securing of available training two career preparation programs. The tion, as well as employee consumption, capacities in the region. New priority “Startklar” (Ready to Roll) and “BIFF” contribute directly and indirectly to the areas for funding have emerged in the (Berufliche Integration von Flüchtlingen positive economic development of the past few years. In addition to projects for in Frankfurt Rhein-Main or Professional respective regions. the vocational and social integration of Integration of Refugees in Frankfurt 92 Community Sustainability Report 2018

Noise abatement

Improvement of the noise situation in neighboring residential areas and staying permanently below the noise limit.

Noise abatement above and beyond legal requirements

Airports located in the vicinity of Fraport AG collaborates with the region Hessian State Chancellery, is to foster metropolitan areas are a burden for affected by aircraft noise, representatives dialog between the region and the many local residents. At the Group of the state government, and other aviation industry and to facilitate discus airports, noise abatement measures members of the aviation industry in sion of the effects of air traffic, with a are implemented according to the two committees. The Aircraft Noise particular focus on Frankfurt Airport and national requirements on noise protec Commission (FLK) is a legally appointed the Rhine-Main region. The FFR includes tion and, where appropriate, based body that advises the Hessian Ministry the “Active Noise Abatement” expert on more specific local regulations. The of Economics, Energy, Transport and group, which advises on measures that airports comply with the relevant Regional Development (HMWEVW), the may help to reduce aircraft noise and the national laws and have correspondingly Deutsche Flugsicherung and the Federal impact on the area around the airport. implemented their own monitoring Supervisory Office for Air Traffic Control. systems where required. Frankfurt The FLK advises the aforementioned Fraport wants to grow further at its main Airport is the site in the Group with the bodies on measures to protect against site and ensure this growth generates largest traffic volume by far. This aircraft noise and air pollution resulting as little noise as possible. For Fraport AG, coincides with noise pollution felt by from aircraft exhaust gases. this means it is constantly working residents near the airport. The local towards measures that reduce aircraft management approach is therefore The key task of the Airport and Regional noise pollution above and beyond the described below. Forum (FFR), which is assigned to the legal requirements. The development of Sustainability Report 2018 Community 93

aircraft noise pollution in the area around last three months. It also reports the concepts and take-off or landing pro the airport is continuously monitored. approaches and takeoffs at Frankfurt cedures. These measures include estab Measurement analyses and the results of Airport. The information system for lishing a “Ground Based Augmentation comprehensive simulations are regularly aircraft noise issues, FRA.Map, is available System” (GBAS) navigation system, which reported to the supervisory authority and online and allows local residents and enables a steeper angle of approach of the FLK, and are also publicly disclosed interested parties to find information for 3.2 degrees for all runways. Thus far, the on the company’s website. Municipalities their location or place of residence on GBAS could not be used for parallel with Fraport aircraft noise measurement an interactive map. The system also approaches, which meant the aircraft had stations receive additional detailed displays the areas that are targeted by to alternate landing on the two runways. analyses upon request. noise abatement measures or entitled This has now been possible since Decem to compensation payments. ber 2018. With the so-called noise Information available online abate ment model, individual takeoff and at any time As regards measures to reduce noise landing runways are alternately not used, exposure, a distinction must be made enabling the local nighttime quiet period Fraport Noise Monitoring, FRA.NoM, between active and passive noise abate to be increased by one hour. Furthermore, tracks the level values continuously mea ment. In active noise abatement, noise the current structure of the noise-related sured at stationary measuring stations is reduced directly at the source or by charges as part of the airport charges is an and indicates the aircraft noise in the implementing noise-reducing operating incentive to use low-noise aircraft. 94 Community Sustainability Report 2018

Number of average takeoff and Distribution of aircraft movements by landing procedures per day direction of operation

BR 07 Takeoffs and landings 24.1% 1,303 46.6% 1,404 BR 25

75.9% 53.4%

Direction of operation east = BR 07 Summer flight plan 2017 Direction of operation west = BR 25 Summer flight plan 2018

During the summer of 2018, there was approval for the expansion result in obligations to take measures in around a slight increase in landings after 11:00 noise contours with continuous sound 86,000 households close to Frankfurt p.m. This was due, among other things, levels of 55 dB(A) and 60 dB(A). These Airport. Eligibility is defined by a noise to poor weather conditions, air traffic contours have been reduced by 1.8 dB(A) protection area determined by the Hesse controller strikes in Europe and capacity across the board. The total areas within State Government in accordance with bottlenecks in the European air space. the reduced contours define the noise the strictest regulations of the Aircraft As an improvement measure, airlines emission ceiling. If the limit is exceeded, Noise Act. Fraport AG satisfies these added, for example, additional buffers Fraport AG and the airlines are obliged requirements in full. in the flight plans at Frankfurt Airport. to review further noise abatement Moreover, takeoffs are no longer sched measures. If the limit is repeatedly The state government promised affected uled after 10:40 p.m. Late landings are exceeded, any of the parties involved residents additional, more extensive examined and approved, if necessary, by can take action outside of the alliance. efforts than those previously made in the aircraft noise protection officer of the the vicinity of the airport in announcing Hessian Ministry of Economics, Energy, the “Together for the Region – Alliance Transport and Housing (HMWEVW). In 2018, a monitoring report for Noise Abatement 2012” program Fraport AG add a night surcharge of 50% jointly drawn up by the in February 2012. That same year, a to the noise charges for landings and regional fund was set up to this end with takeoffs, and 200% after 11:00 p.m., in alliance partners was pub €265 – 270 million. The funds are pre an effort to make delayed aircraft move lished for the first time. dominantly provided by the State of ments particularly unattractive. Such Hesse and Fraport AG and can be used charges are used to finance the passive This report shows that the for both private households and public noise protection program and wake noise emission ceiling facilities qualifying for protection, such turbulence prevention. as schools, kindergartens, or hospitals. in the previous year was Some 17,300 households in the airport The voluntary alliance for a noise emis complied with. region may receive additional support sions ceiling created in 2017 should help for passive noise abatement from the to ensure that the noise exposure at regional fund. The application deadline Frankfurt Airport during the day does not for financing from the fund was Decem increase as much as would be permitted Passive noise abatement measures are ber 31, 2017. In its place, the Regional under the zoning decision, despite intended to reduce the noise level inside Equalization of Burdens Act, with which growth in aircraft movements. The traffic buildings by way of structural modifica the State of Hesse has made an additional volume and traffic structure of the zoning tions. Fraport AG has extensive statutory €22.6 million available to local authorities Sustainability Report 2018 Community 95

particularly affected by aircraft noise by 2014. These regulate the requirements The Executive Director Controlling and the year 2021, has been in effect since for protecting roof coverings on build Finance is regularly informed about the January 1, 2018. ings against wind gusts caused by wake programs of measures regarding noise turbulences and clarify the relevant abatement and roof protection. The Wake turbulence prevention prerequisites. Executive Director Operations is also directly informed of individual matters Damage has repeatedly occurred on roofs The HMWEVW defined an area with where required. in the direct vicinity of Frankfurt Airport around 6,000 buildings as an eligible area in the past and wake turbulences from in the decisions. Including fiscal year 2018, In order to support local residents in landing aircraft could not be ruled out as some 3,380 applications for roof protec determining their rights and to assist their a cause. The HMWEVW subsequently tion (wake turbulence prevention) have applications, Fraport provides an exten issued supplemental planning zoning been submitted and work on some 2,850 sive range of information and services on decisions on May 10, 2013 and May 26, properties has been completed so far. the company website www.fraport.com. 96 Environment Sustainability Report 2018

Environment

Operating an airport and air traffic have an effect on the environment. Fraport is committed to the due and proper consideration of the environmental requirements associated with this. Our activities focus on targeting the conservation of the climate and nature, and the careful use of resources. Sustainability Report 2018 Environment 97

Climate protection

Reducing CO2 emissions based on the Paris climate protection agreement (two-degree target) by increasing energy efficiency, using and producing renewable energy, and using alternative drive systems.

An overview of Group-wide CO2 emissions

Management activities at Fraport AG energy demand due to the unusually around 50% compared to the base year mainly deal with the emissions the long and hot summer as well as by strong of 2015. In 2018, emissions in the fully company is directly responsible for, but it passenger growth at Frankfurt Airport. consolidated Group companies amounted also looks at emissions that it is only to 244,029 metric tons of CO2 (previous indirectly connected to and which it can year: 209,668). The increase in emissions therefore only indirectly influence. Based For the Group as a whole is attributable to the first-time incorpo on the Federal Government’s climate (including Frankfurt), ration of the Group companies Fortaleza change agreement 2050, Fraport AG and Porto Alegre. The emission value of wants to reduce the CO2 emissions at the Executive Board has these airports was 36,445 tons of CO2. Frankfurt Airport to 80,000 tons by 2030. set a climate protection Without these airports, emissions would This corresponds to a reduction by have decreased by 1.0%. 65% compared to the emissions in the target of a reduction base year of the international climate A way of successfully managing CO is to 125,000 tons of CO 2 change agreement (1990). In the past 2 to participate in the Airport Carbon fiscal year, Fraport AG’s CO2 emissions by 2030. Accreditation program of the ACI (Airports amounted to approximately 188,631 tons Council International), in the develop of CO2, 0.8% less than in the previous ment of which Fraport played a major role. year. The emission reductions from the If necessary, the objective will be Since 2010, it has evolved into the world energy savings from the ongoing adjusted to any changes in Fraport’s standard for CO2 reporting and manage programs to improve energy efficiency airport portfolio. The current Group ment at airports. Participation at level 2 were nearly offset by the increased target corresponds to a reduction of (“reduction”) or higher requires proof of 98 Environment Sustainability Report 2018

both a CO2 reduction target, a CO2 also allows qualified statements to be fiscal year, Fraport AG’s CO2 emissions

management program in accordance made at any time about the current CO2 amounted to approximately 188631 tons

with international requirements, and emissions at Fraport AG and allows of CO2, 0.8% less than in the previous of annual emission reductions verified any undesirable developments with year. The emission reductions from the

by external experts. Frankfurt Airport respect to the strategic CO2 targets for energy savings from the ongoing pro reached level 3 (“optimisation”) back Fraport AG to be detected at an early grams to improve energy efficiency were in 2012. Ljubljana Airport achieved stage. The company’s monthly energy nearly offset by the increased energy level 2 in 2015 and is aiming for level 3+ consumption, which is recorded in a demand due to the unusually long and (“neutrality”) in the medium term. sophisticated manner by building, hot summer as well as by strong passen Lima, Varna, and Burgas airports do not system or equipment, serves as the ger growth at Frankfurt Airport. currently participate, nor do the airports database. All energy sources, such as of Fraport Greece and the Brazilian electricity, district cooling, district Fraport AG has been involved in the airports in Fortaleza and Porto Alegre. heating, gas, fuel for vehicles, and other Carbon Disclosure Project (CDP) since

However, they are obligated to have fuels, are taken into account. 2006, which analyzes CO2 emissions,

their CO2 footprint tested by way of an climate risks, and companies’ reduction external audit. Since 2014, all decisions relating to goals strategies. The CDP manages the Fraport AG’s energy management at world’s largest database on this topic, Fraport AG has used its own monitoring Frankfurt Airport have been prepared which is used by investors and also

instrument, the CO2 and energy con in a separate body, known as the by political decision-makers. A score sumption monitoring system, since 2013 Energiezirkel, which is chaired by the assesses a company’s transparency and to depict, analyze, and manage energy Executive Director Controlling and activities. Fraport AG achieved achieved consumption at the Frankfurt site. It Finance and reports to the Executive level C (“Awareness”) in 2018. This is creates transparency about consumption Board. Such decisions mainly concern evidence of transparent reporting and and consumers, helps to improve energy improvements in building, system, and the company’s awareness of its influence efficiency and reduce energy costs. It process energy efficiency. In the past on climate change. Sustainability Report 2018 Environment 99

Frankfurt Airport carbon footprint Fraport parent company carbon footprint

1.69 million metric tons + 6.6% 1) compared to previous year

59.5% Electricity consumption (scope 2)

17.9% Operation of vehicles 2.2% and equipment (scope 1) Scope 1 2) 15.4% 9.0% District heating consumption (scope 2) 188,631 Scope 2 3) 5.4% metric tons District cooling consumption (scope 2) – 0.8% 88.8% 1.8% compared to 4) Scope 3 Other (scope 1): previous year Operation of grid replacement facilities (0.3%) Operation of fire drill facilities (0.1%) Operation of combustion facilities (1.4%)

1) The growth at the site is mainly attributable to the increase in air traffic and the hot summer (aircraft movements + 7.7%). 2) Own consumption of Fraport parent company. 3) External procurement of energy by Fraport parent company. 4) Third parties on site, air traffic in the landing and takeoff cycle up to 3,000 feet, as well as incoming and departing traffic (passengers, employees).

For the vehicle fleet and the aircraft handling equipment, the specialist departments assess the opportunities to use alternative forms of propulsion, in particular electric vehicles, as an alternative to vehicles with combustion engines. 100 Environment Sustainability Report 2018

Environment and nature conservation

Careful use of natural resources and continual improvement of environ mental performance such as reduced use of drinking water, prevention and recovery of waste, protection of soil and water, as well as preservation and promotion of biodiversity.

Environmental management as a Group-wide duty

The operation of an airport and air traffic protection within the relevant com In its “Environmental Impact Study for have various effects on the environment. pany. In addition, they support those the Expansion Program of the AIJCH”, Fraport considers itself responsible for responsible for operational activities and updated for the fiscal year 2018, the taking due consideration of the resulting the management with regard to the Group company Lima laid out the environmental requirements and expects performance of their respective duties requirements for the contractual imple the same of its suppliers and service and improvements in environmental mentation of the airport expansion in providers. performance. The functionality and line with social and ecological guidelines. effectiveness of the environmental man In addition, the Group company has The environmental policy from 2008 agement systems is reviewed and certi committed itself to respect the “Equator obliges all Group companies to make use fied by external certifiers (ISO 14001) or Principles”, a set of rules set forth by of natural resources and the environment environmental verifiers (EMAS) on an banks to comply with environmental in a sustainable, conserving and preven ongoing basis. Fraport AG’s employees’ and social standards in the area of tive manner, and to continually improve many years of experience in environ project financing. their environmental performance. To this mental management benefit all Group end, environmental management sys airports, for example in the form of Grassland between runways tems were introduced at Fraport AG and technical support, including on site. at all fully consolidated Group compa Comprising an area of around 22 square nies that are classified as “fundamentally Consideration of environmental kilometers, Frankfurt Airport is among environmentally relevant” due to their matters the most compact major airports in the business activities. These systems are, world. Around half of this land is unsur almost without exception, certified in Lenders have explicitly demanded faced. The largest open continuous area accordance with the relevant standard consideration of environmental concerns is located close to the runways. In nature ISO 14001 or the European EMAS Regu in the biggest construction project at conservation terms, this extensively lation. Companies that join the Group Frankfurt Airport. For the financing of maintained permanent grassland is a and do not yet have such a system are Terminal 3, the European Investment high-quality habitat that is home to obliged to introduce an environmental Bank requires a project progress report many rare and endangered animal and management system in the course of the every two years that also includes the plant species. Frankfurt Airport has since acquisition. At the end of the past fiscal description of all significant environ become a nationally significant retreat year, 86.7% of the fully consolidated, mental aspects. This helps to reduce and protection area for some species, environmentally relevant Group compa environmental risks and is one of the such as the skylark. The Wildlife Man nies were equipped with such a system. principles of transparency, which aims agement department is responsible for to increase the reliability of the EIB preserving and further enhancing this Environmental management systems Group as seen by its shareholders and value, as long as flight operations serve to systematically organize, manage the citizens of the European Union allow. Its success in doing so is moni and monitor corporate environmental in general. tored closely. Sustainability Report 2018 Environment 101

Wildlife Hazard Management at the per 10,000 flight movements (5.59 in lot of wastewater. When using “water as international Group airports is imple the previous year) and was thus slightly a good requiring protection”, Fraport mented according to international regu below the German average of 5.61 factors in all aspects of modern water lations as well as, where appropriate, (previous year: 5.8). The statistic also management. This includes both based on more rigorous national and includes collisions with mammals. consumption control and quality control local targets. The airports comply with of the water that enters the ecosystem. the relevant national laws and have Counterbalancing the At Airport Frankfurt, water is used correspondingly implemented their own Expansion South sparingly; for this, water-saving tech monitoring systems. nologies are used in sanitary systems and Wherever possible, Fraport AG extends circulatory systems in vehicle washing Collisions with individual large birds or the green areas at the Frankfurt site. For facilities, among other things. Fraport AG flocks of birds are a source of risk for example, the new buildings in CargoCity also replaces drinking water with service airplanes. Since statistically around two South are increasingly being planned water, where possible. At CargoCity thirds of all bird strikes occur at airports with ecological green roofs. Fraport AG South and Terminal 2, rainwater is col and in their vicinity, Fraport, like every will upgrade some 2,300 hectares of land lected and supplemented by water from other airport operator, is required to in the immediate and wider vicinity of the their own groundwater wells or treated minimize this risk. As has meanwhile airport from a nature conservation per water from the Main river. The service become the state-of-the-art approach, spective as a legal requirement under the water is used in sprinkler systems, toilet Fraport prioritizes a specific biotope zoning decision for the airport expansion. flushing systems and for watering the management. The airport grounds are High-quality habitats such as deciduous green areas. In CargoCity South, the made respectively unattractive for the forests, orchards, marshes, and nutrient- service water supply has been compre relevant animals or birds, meaning that poor grassland are being developed. hensively developed. In the north, breeding, resting and feeding options Measures to counterbalance the Expan Terminal 2 is supplied by service water, are minimized or avoided. Bird gathering sion South, in particular Terminal 3, are Terminal 1 and neighboring office spots in the vicinity of the airport are already included in this extensive package buildings are largely connected to the regularly monitored. During new plan of measures. The implementation and system. The share of service water in ning or planned changes in the region, evaluation of the measures are subject to Fraport AG’s total consumption is around Fraport exercises its influence to maintain continuous monitoring. 50%. This value is significantly higher aviation security from a biological point than in previous years, due to the con of view. In 2018, Airport Frankfurt had a Operating an airport requires a lot of struction for the new Terminal 3. wild animal strike rate of 5.34 incidents water and at the same time generates a 102 Environment Sustainability Report 2018

Air quality

Recording air pollutant emissions stemming from airport operations.

Determining the impact of air pollutants

Fraport has been focusing on the issue of measured air pollutants since 2002 at traffic, also play a role in the air quality air quality at the Frankfurt site for many two to five measuring stations. The results on airport grounds. In addition, the years, including the assessment of the are regularly published on the website in level of pollutant concentrations strongly airport’s share in the local concentration the “Air quality annual report”. In 2005, depends on the weather. of nitric oxide. The current discussion on the area near the Runway Northwest was diesel pollutants has once again brought added to the network of air monitoring Share of overall impact the subject to center stage. There is no stations. In the approval procedure, the obligation to monitor air quality, yet greatest impact on air quality by the To gain information on the proportion of Fraport has set the objective of gaining a airport was predicted for areas close to certain polluters to the overall exposure deeper understanding of the emission of residential zones. in a region, computational models have air pollutants (emissions) by the airport been developed that include all the and their effect on people and the envi relevant sources of pollution and their ronment (immissions). The measurements emissions for a given zone. The LASPORT show that the air program takes into account various At the Group airports, air quality airport-related emission sources in the measurements and measures to improve quality on the airport lower atmosphere, prepares spread com it are implemented according to the grounds have putations, and illustrates the exposures. national requirements and based on It was developed on behalf of the Associa advanced specific local regulations. The remained unchanged tion of German Airports (ADV) in 2002 Group companies comply with the at an urban level and is now being expanded in collabora relevant national laws and have imple tion with specialists from Fraport AG. mented their own monitoring systems since the beginning of where required. monitoring by Fraport. From an organizational standpoint, the “Environmental Impact, Noise, and Air In Germany, Fraport AG cooperates with Quality” department of the Airside and the German Aviation Association and the At the local level, there is an overlap of Terminal Management, Corporate Safety, Airports Council International. In addition, air pollutant concentrations related to and Security strategic business unit is

collaborations with the Hessian Agency the airport and those not attributed to responsible for this task. The CO2 emis for Nature Conservation, Environment the airport. The airport’s impact on sions are surveyed and monitored in the and Geology and the Federal Environ the air quality in the surrounding areas Environmental Management department. mental Agency exist to study so-called is largely limited to zones within a close The department is part of the Corporate ultra-fine particulates. proximity and to the nitrogen dioxide Development, Environment, and Sustain

(NO2) emissions component. Measure ability central unit. The Executive Board is At the Frankfurt site, with the largest ments and modeling suggest, however, directly involved as it receives an annual share of traffic, Fraport has continually that external influences, such as road report on the matter. Sustainability Report 2018 Environment 103

Fraport is working on a model that low-emission aircraft, airport charges are traffic. The quantities of these pollutants creates a systematic inventory of air levied on nitrogen oxides and hydro emitted by the aircraft at the Frankfurt pollutant emissions. This will enable carbon at the Frankfurt site. The emissions- site are calculated annually and published future potential for mitigation to be based fee is charged per kilogram of in the environmental statement. identified, mitigation activities to be nitrogen oxide equivalent emitted during controlled, and their success to be takeoff and landing (“landing and take-off In addition to flight operations, air mapped. It serves as a data basis to cycle”, LTO) by an aircraft. The charges pollutants at airports also arise from the determine the proportion of the air are levied per landing and per takeoff. apron and vehicle traffic as well as the port’s operations on pollution in the The necessary information on aircraft and operation of heaters run on oil or gas. As surrounding area. The selection of the engine types is determined by way of a a way of reducing pollutants, Fraport has pollutants to be observed depends recognized fleet database. gradually upgraded its fleet of vehicles to on their relevance. They are especially include low-emission and electric motors. relevant if they are regulated by a Aircraft turbines mainly emit carbon threshold value and are emitted in a dioxide (about 7%) and water vapor Subsequent to the mediation on the noticeable amount at the Frankfurt site. (approximately 3%) in addition to mixed expansion of Frankfurt Airport, Fraport air (about 90%). The additional resulting established two service units in 2000, the Charges on aircraft emissions pollutants carbon monoxide, nitrogen Infofon hotline and the Neighborhood oxides, sulfur dioxide, hydrocarbons, and Dialog. In addition to complaints about As an airport operator, Fraport can only soot account for less than one percent aircraft noise and noise abatement, requests indirectly influence emissions from air overall. The emission spectrum of aircraft on air quality are also processed. craft. In order to motivate airlines to use turbines corresponds to that of road 104 Fraport international Sustainability Report 2018 Fraport international

p. 108 Fraport Brasil

p. 106 Fraport USA

p. 114 Lima Airport Partners Sustainability Report 2018 Fraport international 105

p. 110 Fraport Slovenija

p. 116 Fraport Twin Star

On the following pages, we introduce the Group companies in which we own a share of over 50%.

p. 112 Fraport Greece 106 Fraport International Sustainability Report 2018

Company Portrait Fraport USA Inc.

Fraport USA was founded in 1992 at gastronomy facilities on an area cover In April, Fraport USA took over the Pittsburgh International Airport with the ing about 28,700 square meters (over operational management of around objective of developing better commer 300,000 square feet) in the passenger 4,700 square meters (approximately cial concession programs at airports in terminals at these sites. The facilities are 50,500 square feet) of retail space in North America. In collaboration with operated by local, regional, national, and Terminal 5 from JetBlue at John F. Kennedy airport operators, the company imple international concessionaires. The focus International Airport. Fraport USA and ments creative and innovative retail and is on local brands that represent the JetBlue are working together to optimize restaurant concepts that appeal to both respective cultural characteristics. Almost the range of shops and restaurants with domestic passengers and a diverse inter 70 million passengers used the terminals New York City-inspired offers. national audience. At the same time, of these aviation hubs in 2018. positive competition between the individ In May, Fraport USA launched the ual concessionaires at each site is pro In August, the Metropolitan Nashville “Welcome Initiative for Nurturing Great moted. Based on Fraport’s mission state Airport Authority awarded Fraport USA Service (WINGS)”, a recognition program ment “Gute Reise! We make it happen”, the tender to manage the commercial for employees in customer service which the focus is always on service orientation retail areas at Nashville International encourages the implementation of best and customer satisfaction. Airport. The company took over opera practices that increase motivation and will tions in February 2019. Over a period of establish a reward culture for outstanding At the end of 2018, Fraport USA was ten years, Fraport USA will transform the customer service. The program offers operating at four airport sites: Balti retail and gastronomy experience for training in which employees of concession more/Washington, Cleveland, JFK in almost 16 million passengers at one of aires and others can improve their skills New York (T5), and Pittsburgh. The the fastest growing airports in in customer service and best represent the company manages the retail and North America. qualities and the culture of their cities. Sustainability Report 2018 Fraport international 107

Penn Brewery newly available Administration, Fraport USA/Maryland at Pittsburgh Airport was able to attract more concessionaires Airports to the airport. In 2018 Fraport USA/Pittsburgh wel- Baltimore-Washington comed not only the largest and oldest At Cleveland Hopkins International Air- International Airport craft beer brewery in Pittsburgh, Penn port, Fraport USA/Cleveland transformed Brewery, it was also able to integrate a the retail and gastronomy program by Cleveland Hopkins number of innovative pop-ups at the doubling the concession area to almost International Airport airport. In this way, products can be 5,600 square meters (over 60,000 square advertised cost-effectively in a small feet) and introducing new concepts. Pittsburgh International Airport retail space and tested without significant financial risk for the business involved. Fraport USA promotes small businesses, John F. Kennedy businesses owned by minority groups, International Airport (Terminal 5) As the largest airport in the metropolitan and companies owned by a disadvan- region around the US capital, Baltimore/ taged corporate group through training Washington was used by more than or networking services. In this way, 27 million passengers in 2018. This Fraport USA meets the political objectives includes a high proportion of passengers of the national ACDBE guideline (Airport Passengers from Southwest Airlines, which operates Concession Disadvantaged Business its main east coast hub in Baltimore. Enterprise) and is one of the leading US Together with the Maryland Aviation companies in this area. ~ 70 million

Sickness rate

1.19 %

Retail area

~ 28,700 sqm (approximately 310,000 sq. ft)

Vivica Brown, Vice President of Operations, Nashville

“Nashville International Airport is growing at a record pace. Dynamic retail and gastronomy programs play an important role in improving the passenger experience and conveying the impression of local cultural characteristics. We want to create a program that brings the visual aspects, the sound, and the variety of tastes of Nashville to the airport. At the same time, we seek to maintain the high operational standards we are known for and that travelers expect.” 108 Fraport international Sustainability Report 2018

Company Portrait Fraport Brasil

The two Brazilian airports in Porto Alegre the Brazilian Government for the conces The year 2018 was full of challenges and and Fortaleza have been a part of the sions in order to operate, manage, and important events for the team of 380 staff Fraport Group since 2018. Fortaleza is develop the two airports over the next 25 members employed under the leadership located directly on the Atlantic Ocean in and 30 years, respectively. This led to the of CEO Andreea Pal. The ceremonial the northern part of the country. The creation of two Group companies, Fraport laying of the foundation stone for the city’s population of approximately 2.6 mil Brasil-Porto Alegre and Fraport Brasil- expansion and modernization projects at lion boasts a high purchasing power, Fortaleza. The companies took over opera Salgado Filho International Airport making it one of the economically stron tions of the airports on January 2, 2018. occurred in March. With the Governor of gest cities in north-eastern Brazil. Porto the State of Rio Grande do Sul and the Alegre, with its approximately 1.5 million Since the beginning of the concessions, Mayor of Porto Alegre in attendance, the inhabitants, borders on the coastal lagoon employees in Brazil have worked hard to ceremony marked the beginning of the “Lagoa dos Patos”. Given its favorable improve the quality of services, opera construction work for the expansion of location directly on the Rio Gualba and its tions, and safety. The expansion and Terminal 1, the extension of the runway, large port, it is one of the most important improvement of the infrastructure is an adjustments to the taxiways, and industrial and commercial centers in integral part of the concession contracts. improvement of the drainage system at southern Brazil. Products from the agricul the airport. The expansion of the terminal tural interior, such as soybeans, leather, Both airports recorded high passenger is expected to be completed by the end canned beef, and rice, are exported from growth rates in the year under review. of 2019. The extension of the runway will here all the way to Africa and Japan. Salgado Filho International Airport be finished in 2021. welcomed 8.3 million passengers (+3.6% Salgado Filho International Airport (SBPA) compared to 2017) and recorded over Also in March, the cornerstone for the in Porto Alegre was officially opened in 80,000 aircraft movements. At Pinto expansion and modernization of Pinto 1953. The significantly younger Pinto Martins International Airport, 6.6 million Martins International Airport was laid with Martin International Airport (SBFZ) in passengers (+11.4% compared to 2017) the Governor of the State of Ceará, the Fortaleza was built in 1998. In 2017, took off and landed, with over 51,000 Mayor of Fortaleza, and other guests in Fraport was awarded the tender from aircraft movements. attendance. The construction work Sustainability Report 2018 Fraport international 109

“Our greatest challenge is to exceed expectations, not only Airports those of passengers but also Aeroporto Internacional of all stakeholders. These may de Fortaleza be families who want to pick Aeroporto Internacional someone up or they could be de Porto Alegre trading partners, airlines, or other employees at our

company. We seek to set Michele Guimarães dos Santos, Passengers ourselves apart through our Terminal Supervisor, Salgado Filho exceptional performance. ~ 14.9 million This goal motivates us in all our activities.” CO2 emissions

2,735 t

includes the expansion of Terminal 1, of new international flights to Paris the extension of the runway, adjustments and Amsterdam reflects the increase in to the taxiways, and optimization of the passenger traffic and contributes to access road to the airport. The expansion the economic development of the city, of the terminal is scheduled to run until the state, and the entire region. April 2020, while the extension of the runway will last until 2021. Depending on future exchange rate developments, Fraport expects capital In addition, a hub was established for Air expenditure in airport infrastructure France/KLM in Fortaleza in 2018 together of around €700 million in the first five with the Brazilian airline Gol. The launch years of the concession period.

“At Fraport Brasil-Fortaleza, our cus tomer orientation is our top priority. In order to provide first-class service we treat them as we would want to be treated as customers. Whether on the phone or through personal contact, there is always an opportunity to do something special.”

Wellania Antunes Carneiro, Terminal Agent, Pinto Martins 110 Fraport international Sustainability Report 2018

Company Portrait Fraport Slovenija, d.o.o.

Fraport Slovenija, d.o.o. operates Ljublja 1.8 million passengers in 2018, making it tiveness of the land coupled with greater na Airport, the largest international yet another record year in the history of demand, Fraport Slovenija has intensified airport in Slovenia and the home airport the airport. Passenger growth was 7.7% the development of the Airport City and of the Slovenian airline Adria Airways. compared to the previous year. In 2018, the logistics area at the airport in an The company was founded in 1963 under passengers from Ljubljana were able to effort to increase the attractiveness of the name Aerodrom Ljubljana, and has reach 34 destinations in Europe with the airport as a whole. been a wholly-owned subsidiary of direct flights offered by eleven airlines. Fraport AG since 2015. In April 2017, Focus on employees’ health Aerodrom Ljubljana was renamed Fraport The continuing positive development of Slovenija in the last step of the compa passenger numbers has led Fraport Slo The satisfaction and health of employees ny’s integration into the Fraport Group. venija to build a new passenger terminal is of great importance at Fraport Sloveni At the end of 2018, the management to meet demand. The construction of the ja and anchored in its strategic corporate team, led by Managing Director Zmago 10,000 m² (approximately 107,500 ft²) goals. And this approach is paying off: Skobir, was responsible for around terminal is set to begin in 2019 and In 2018, Fraport Slovenija received the 483 employees. should be completed by 2021. The new award for best employer in the category ring road at the airport was completed at “Foreign-owned companies” by Spirit The airport benefits from its strategic the beginning of 2018. Moving the main Slovenija in cooperation with the Slove location in the corridor from the Middle road along with the rerouting of roads nian Ministry for Economic Development East over the Bosporus to the European allows for a more efficient use of land at and Technology. In 2019, the company Union. Fraport Slovenija served over the airport. Due to the increased attrac was recognized by the largest job Sustainability Report 2018 Fraport international 111

exchange in Slovenia, MojeDelo.com, as Fraport Slovenija strengthens the work- a respected employer for the sixth time. life balance through flexible work models Airports (e.g. part-time work, unpaid leave in The company is active in a range of emergency situations of up to six Ljubljana Jože Pucnik Airport different areas with the goal of promot months, flexible working time models in ing employee health. For example, administration) and financial support Fraport Slovenija pays the costs for flu within the scope of prevention and shots and provides staff with regionally emergency situations (e.g. supplementa produced fruit. It also encourages its ry pension insurance, solidarity assis Passengers employees to pursue health-promoting tance, co-financing of accident insur recreational activities during their free ance). Child care is organized during time and supports these efforts by school holidays to assist employees with ~ 1.8 million providing sporting facilities, financial children. An event for families (“Fun support for sporting competitions, Airport Festival”) and discounts for busi and by organizing corporate sports ness partners round off the support activities and events. measures. Sickness rate

7.01%

CO2 emissions

1, 2 0 6 t

Employee satisfaction 3.1

Špela Uršic, Head of Human Resources and Training

“Fraport Slovenija places great importance on having a professional team with a high level of expertise. To attract the best employees and staff, we offer job security and excellent working conditions. The measures have strategic importance for us and include a wide range of education and training measures, the conditions in the workplace regarding health and safety, and offers for cultural and recreational activities.” 112 Fraport international Sustainability Report 2018

Company Portrait Fraport Regional Airports of Greece

Fraport Regional Airports of Greece Commission with commitments amount airports on Kos (KGS), Mytilini/Lesbos (Fraport Greece) was founded in 2015. In ing to €710 million with the goal of (MJT), Mykonos (JMK), Rhodes (RHO), April 2017, the company took over financing capital-intensive infrastructure Samos (SMI), Santorini/Thira (JTR) and responsibility for the operation, manage investments within the EU. Skiathos (JSI). ment, and development of 14 Greek regional airports for a concession term of Fraport Greece is made up of three In addition to airport operations, Fraport 40 years. Shareholders in Fraport Greece companies: Fraport Regional Airports of Greece is responsible for the maintenance are the German airport operator Greece Management Company S. A. and development of the airports over the Fraport AG (73.4% share), the Greek (Fraport Greece ManCo), Fraport Regional next 40 years, and it will invest around business development corporation Airports of Greece A S. A. (Fraport €415 million in modernization and infra Copelouzos Group (16.6% share), and Greece A), and Fraport Regional Airports structure development by 2021. Current the Marguerite Fund (10% share). of Greece B S. A. (Fraport Greece B). ly, 200 people are employed at the com Fraport AG and the Copelouzos Group pany’s headquarters in Athens, and 400 look back on a longstanding partnership While all essential administrative functions others work full-time at the 14 airports. that started with the project to expand, are carried out within the management maintain, and operate Pulkovo Airport in company, Fraport Greece A is responsible The management of Fraport Greece St. Petersburg, Russia. Marguerite, the for operating the airports of Thessaloniki includes Alexander Zinell (Chief Executive European Fund 2020 for Energy, Climate (SKG), Aktion/Preveza (PVK), Kavala (KVA), Officer), Bill Fullerton (Chief Technical Protection and Infrastructure, was found Chania/Crete (CHQ), Kerkyra/Corfu Officer), Vangelis Baltas (Chief Financial ed in 2010 with the participation of six (CFU), Kefalonia (EFL) and Zakynthos Officer), and Ilias Maragakis (Chief Oper public institutions and the European (ZTH). Fraport Greece B operates the ating Officer). Sustainability Report 2018 Fraport international 113

The concession of the 14 Greek regional such as agriculture, fisheries, construction, airports is one of the largest capital retail, the service sector, and the real Airports expenditure measures in Greece. The estate market. Fraport Greece works partners work together to support the closely with the local authorities at the Thessaloniki, Aktion/Preveza, Kava tourism industry that is important to respective airport sites and promotes la, Chania (Crete), Kerkyra (Corfu), Greece, contribute to the competitiveness local businesses and service providers. Kefalonia, Zakynthos, Kos, Mytilini of the country, and create new jobs. In (Lesbos), Mykonos, Rhodes, Samos, addition, the cities and regions in the Development plans call for the modern Santorini (Thira), Skiathos vicinity of the airports benefit from the ization or development of infrastructure growing passenger numbers and the at the 14 airports. The planned measures extension of the travel season thanks to range from the renovation of existing a professional airport management. terminals to the construction of new airside and landside facilities. Nine air Passengers The airports are located in attractive ports will have new or expanded termi tourist areas or national economic centers nals, while completely new terminal and were used by 29.9 million passengers facilities will be built at five other airports. ~ 29.9 million in 2018, an increase of 8.9% compared to 2017. In the future, even more passen gers, mostly tourists, are expected to visit Greece, which will benefit other sectors Sickness rate

0.77%

CO2 emissions

33,711 t

Christos Stathis, Integrated Management Systems Manager

“Fraport Greece’s priorities include developing processes and functions with which we can continuously improve the quality of our services, the environmental performance, as well as occupational safety and health. By implementing manage ment systems based on ISO standards, we are establishing sustainable and modern operations with the involvement of the airport community. With the integrated management system, we will introduce a new concept and best practices in the Greek aviation industry.” 114 Fraport international Sustainability Report 2018

Company Portrait Lima Airport Partners S.R.L.

Jorge Chávez International Airport (JCIA) expenditure programs. In 2018, Jorge new passenger terminal. In 2017, the was officially opened on December 30, Chávez International Airport reported a Peruvian Ministry for Transport and 1965. 35 years later, in 2001, the govern record 22.1 million passengers and over Communication (MTC) signed an adden ment of Peru awarded the concession for 192,000 aircraft movements, constituting dum to the concession agreement, the operation, management, and expan a five-fold increase since the concession extending the term of the concession by sion of the airport for a period of 30 years was granted in 2001. In 2018, LAP had an additional ten years until 2041 after to Lima Airport Partners S.R.L (LAP), of over 500 employees under the manage the provision of the areas required for the which Fraport AG is the majority share ment of the CEO, Juan José Salmón. expansion had been delayed. holder. The first activities to modernize the infrastructure included the renovation of At peak times, the airport is currently In 2018, the team of the airport develop sanitary facilities, electrical and communi operating at the limit of its capacity. To ment program “ADP”, which is responsible cation systems, and technical equipment. ensure a consistent quality of service and for the expansion, worked on procuring to meet the increasing demands of passen the necessary documents for the bid Since the start of the concession, the area gers and airlines, LAP has begun an exten submitted by the project consortium. of the airport has almost doubled, and its sive expansion program. The ambitious In August, the consortium that will be operation has been aligned with inter project includes, among other things, the responsible for the construction and national standards as part of two capital construction of a second runway and a planning of the expansion was selected. Sustainability Report 2018 Fraport international 115

Airports

Aeropuerto Internacional Jorge Chávez

Passengers

~ 22.1 million

Sickness rate Josselyn Vásquez, Airport Operations Instructor at LAP 3.19 % “With the expansion of the new airport, LAP is enhancing our existing expertise in the service CO2 emissions sector. By standardizing and improving processes in the workflows, we are able to 10,068 t develop a much more efficient work concept that is reflected in the quality of the service and travel experience.” Employee satisfaction 2.00

After fulfilling all the requirements laid out munities surrounding the airport. In these by the competent authority, LAP received training sessions, participants learned approval for the amended version of the about, among other things, topics such environmental impact study (MEIA) in as business planning, marketing strategy, October. That same month, the President cost structure, and legal requirements of Peru and the Minister for Communica for business start-ups. tions and Transport signed the official handover protocol for the land needed for At the same time, more than 6,000 the expansion of the airport. people were trained in specialist areas, such as family medicine, pediatrics, Training in neighboring communities dentistry, and nutrition, within the scope of health care campaigns. Work Throughout the year, various activities ing with five local schools, LAP also related to the airport expansion were held organized airport tours for more than in neighboring communities. For example, 120 children between four and twelve training in entrepreneurship was offered years of age from surrounding villages. to residents in 16 (of a total of 47) com 116 Fraport international Sustainability Report 2018

Company Portrait Fraport Twin Star Airport Management AD

In 2006, the German-Bulgarian company south-western parts of Bulgaria. This the past three years, traffic volume at the Fraport Twin Star Airport Management includes the training of employees, two Black Sea airports increased by AD was awarded the tender, with a term improving service quality and the general around 50%. of over 35 years, for the concession for passenger experience, modernizing the airports in Varna (VAR) and Burgas the airport equipment, introducing new In 2018, Varna Airport celebrated its 70th (BOJ). The joint venture, in which Fraport technology, and modernizing and anniversary. To mark this occasion, VAR holds a 60% stake, has over 600 perma expanding the airport infrastructure. launched the “Art Airport Challenge”, a nent employees and hires up to 1,200 graffiti contest in which one of the airport seasonal workers. The Chairman of the 2018 was another record year for the buildings was redesigned. 20 teams took Executive Board is Ulrich Heppe. German-Bulgarian company. Together, part in the competition. The task was to VAR and BOJ welcomed 5.6 million pas create a work of art that expresses the Fraport Twin Star is responsible for the sengers and processed over 40,000 vision of Fraport Twin Star: “We place the operation, management, and develop flights. 103 airlines flew to 173 destina airport in the traveler’s heart”. ment of two 24-hour gateways on the tions in Europe, the Middle East, and Black Sea: Varna Airport serves the Africa. Fraport Twin Star recorded traffic Fraport Twin Star has planned new capital north-eastern and Burgas Airport the growth of about 12% in the past year. In expenditure in the next few years to Sustainability Report 2018 Fraport international 117

develop the infrastructure at the Black Sea among other things, improving internal airports. In Varna, the expansion and communication, better working condi Airports renovation of the apron, the design of tions in the operational areas, upgrading a new fire department building and the annual performance evaluation sys Burgas Airport renovation of three taxiways are planned. tem and promoting team understanding Varna Airport The repavement of another taxiway was through joint volunteer work. already completed in 2018. The capital expenditure plans for Burgas Airport In the area of climate protection, Fraport include the projects relating to the expan Twin Star is committed to the goal of sion and refurbishment of the apron, the reducing CO2 emissions. The company is Passengers extension of the terminal, and a second gradually replacing its vehicle fleet with expansion of the parking zone in 2019. electric or more efficient vehicles with lower fuel consumption. Another measure ~ 5.6 million Employees are the most valuable asset at is improving the building management Fraport Twin Star, as motivated staff system for monitoring the overall electric guarantee a high level of customer satis ity consumption in the passenger termi faction. Therefore, various measures nals. In addition, Fraport Twin Star seeks Sickness rate to increase employee satisfaction were to conduct a comprehensive energy audit implemented in 2018. These include, of the buildings at both airports. 2.58%

CO2 emissions

7, 457 t

“Security in the air Employee satisfaction begins on the ground.” 2.53 Daniel Baldzhiyski, RAMP-Agent, Burgas

In July, he pointed out a problem with a tire despite Ryanair’s short turnaround time. Although the pilot did not initially agree, the plane’s takeoff was postponed for security reasons. Later, the airline sent a letter of thanks in which it pointed out the outstand ing professionalism of Fraport Twin Star. 118 Key Figures Sustainability Report 2018

Key Figures Sustainability Report 2018 Key Figures 119

Consolidated Income Statement

€ million December 31, 2018 December 31, 2017

Revenue 3,478.3 2,934.8 Change in work-in-process 0.3 0.4 Other internal work capitalized 35.9 36.3 Other operating income 88.2 38.9 Total revenue 3,602.7 3,010.4 Cost of materials – 1,089.1 – 720.4 Personnel expenses – 1,182.3 – 1,092.9 Depreciation and amortization – 398.5 – 360.2 Other operating expenses – 202.3 – 193.9 Operating result 730.5 643.0 Interest income 33.3 29.0 Interest expenses – 201.7 – 186.5 Result from companies accounted for using the equity method 98.8 30.9 Other financial result 9.5 – 10.3 Financial result – 60.1 – 136.9 Result from ordinary operations 670.4 506.1 Taxes on income – 164.7 – 146.4 Group result 505.7 359.7 thereof profit attributable to non-controlling interests 31.8 29.5 thereof profit attributable to shareholders of Fraport AG 473.9 330.2 Earnings per €10 share in € basic 5.13 3.57 diluted 5.11 3.56 EBIT (= operating result) 730.5 643.0 EBITDA (= EBIT + depreciation and amortization) 1,129.0 1,003.2 120 Key Figures Sustainability Report 2018

Consolidated Statement of Financial Position as at December 31, 2018

Assets

€ million December 31, 2018 December 31, 2017

Non-current assets Goodwill 19.3 19.3 Investments in airport operating projects 2,844.3 2,621.1 Other intangible assets 134.5 132.4 Property, plant, and equipment 6,081.7 5,921.5 Investment property 88.8 96.4 Investments in companies accounted for using the equity method 260.0 268.1 Other financial assets 426.1 488.6 Other receivables and financial assets 195.0 190.9 Deferred tax assets 56.7 41.0 10,106.4 9,779.3

Current assets Inventories 28.9 29.3 Trade accounts receivable 177.9 143.5 Other receivables and financial assets 304.3 245.5 Income tax receivables 13.1 5.4 Cash and cash equivalents 801.3 629.4 1,325.5 1,053.1

Non-current assets held for sale 17.2 –

Total 11,449.1 10,832.4

Liabilites and equity

€ million December 31, 2018 December 31, 2017

Shareholders’ equity Issued capital 923.9 923.9 Capital reserve 598.5 598.5 Revenue reserves 2,657.9 2,345.7 Equity attributable to shareholders of Fraport AG 4,180.3 3,868.1 Non-controlling interests 187.7 160.6 4,368.0 4,028.7

Non-current liabilities Financial liabilities 4,100.3 3,955.6 Trade accounts payable 45.5 42.4 Other liabilities 1,016.7 1,090.1 Deferred tax liabilities 228.3 203.8 Provisions for pensions and similar obligations 31.7 34.2 Provisions for income taxes 74.2 70.3 Other provisions 160.2 147.2 5,656.9 5,543.6

Current liabilities Financial liabilities 608.3 575.4 Trade accounts payable 286.5 185.9 Other liabilities 275.6 249.7 Provisions for income taxes 43.9 33.1 Other provisions 201.1 216.0 1,415.4 1,260.1

Liabilities related to assets held for sale 8.8 –

Total 11,449.1 10,832.4 Sustainability Report 2018 Key Figures 121

Consolidated Statement of Cash Flows

€ million 2018 2017

Profit attributable to shareholders of Fraport AG 473.9 330.2 Profit attributable to non-controlling interests 31.8 29.5 Adjustments for Taxes on income 164.7 146.4 Depreciation and amortization 398.5 360.2 Interest result 168.4 157.5 Gains/losses from disposals of non-current assets – 26.8 6.9 Others – 21.1 – 23.2 Changes in the measurement of companies accounted for using the equity method – 98.8 – 30.9 Changes in inventories 0.4 8.6 Changes in receivables and financial assets – 61.8 – 4.1 Changes in liabilities 39.3 94.0 Changes in provisions – 20.5 8.9 Operating activities 1,048.0 1,084.0

Financial activities Interest paid – 127.8 – 137.3 Interest received 12.6 12.5 Paid taxes on income – 130.5 – 140.5 Cash flow from operating activities 802.3 818.7

Investments in airport operating projects – 343.6 – 1,607.0 Investments for other intangible assets – 12.5 – 9.0 Capital expenditure for property, plant, and equipment – 472.4 – 287.1 Investments for “Investment property” – 2.0 – 0.2 Investments in companies accounted for using the equity method – 3.8 – 3.0 Sale of shares in companies accounted for using the equity method 109.2 0.0 Dividends from companies accounted for using the equity method 38.8 3.4 Dividends from other investments 0.8 2.2 Proceeds from disposal of non-current assets 15.7 3.5 Cash flow used in investing activities excluding investments in cash deposits and securities – 669.8 – 1,897.2

Financial investments in securities and promissory note loans – 103.2 – 68.8 Proceeds from disposal of securities and promissory note loans 122.7 182.2 Decrease in time deposits with a term of more than three months 3.8 151.3 Cash flow used in investing activities – 646.5 – 1,632.5

Dividends paid to shareholders of Fraport AG – 138.6 – 138.5 Dividends paid to non-controlling interests – 7.9 – 9.1 Capital increase 0.0 2.5 Capital contributions for non-controlling interests 0.0 47.1 Cash inflow from long-term financial liabilities 461.0 1,304.9 Repayment of non-current financial liabilities – 495.5 – 356.3 Other financing activities 0.0 48.4 Changes in current financial liabilities 198.9 – 19.3 Cash flow used in financing activities 17.9 879.7

Change in restricted cash – 38.5 – 32.5 Change in cash and cash equivalents 135.2 33.4 Cash and cash equivalents as at January 1 461.0 448.8 Foreign currency translation effects on cash and cash equivalents 2.0 – 21.2 Cash and cash equivalents as at December 31 598.2 461.0 122 Key Figures Sustainability Report 2018

Key responsible corporate governance figures (marked KPIs correspond to the non-financial performance indicators in the 2017 Group management report)

Economic enhancement Area of application Unit 2018 2017

Global satisfaction of passengers FRA site % 86.0 85.0 Baggage connectivity FRA site % 98.4 98.5 Customer Service Index Airlines FRA site % 73.9 75.4 Group Result Group € million 505.7 359.7 ROFRA Group % 11.1 10.0 Net financial debt Group € million 3,545.4 3,512.4 Free cash flow Group € million 6.8 393.1 Frankfurt passengers FRA site million 69.5 64.5 Benefit of implemented ideas FRA site € 126,000 557,133

Employees 2) Area of application Unit 2018 2017

Employees – total Group 23,299 22,024 of which women Group % 25.7 25.0 Average age Group Years 43.6 43.6 Employee satisfaction 3) Group School grading system 2.76 2.85 Women in management positions 4) Group in % of managers 26.0 28.0 Number of permanent employee Employee turnover Group leavers in % 7.9 8.3 Employees with collective bargaining agreements Group in % of employees 96.5 95.8 Training days Group Days per employee 8.0 5) 4.56 Traineeships Group 410 360 Sickness rate Group % 7.4 7.5 Work accidents per 1,000 employees Group 26.1 25.8 in % of relevant jobs Percentage of persons with severe disabilities Group (all employees) 7.7 7.9

1) Reported as per the guidelines of the Global Reporting Initiative (employee figures incl. temporary staff, apprentices, and employees on leave as at December 31 ). 2) Includes Fraport AG and 11 Group companies at the Frankfurt site as well as the Group companies Lima, Twin Star, and Fraport Slovenija. 3) Includes Fraport AG and the German Group companies. 4) According to the Schlüter method: departures in fiscal year/(permanent employees + recruitment), previous year’s figure adjusted. 5) The significant increase in training days (continuing education) in 2018 is primarily the result of improved data collection. Sustainability Report 2018 Key Figures 123

Key responsible corporate governance figures (marked KPIs correspond to the non-financial performance indicators in the 2017 Group management report)

Community Area of application Unit 2018 2017

Corporate performance (gross value generation) Group € million 3,698.8 3,084.8 Cost of materials € million 1,089.1 720.4 Other operating expenses € million 202.3 193.9 Direct value generation € million 2,407.4 2,170.5 Employees € million 1,182.3 1,092.9 Capital expenditure € million 834.3 1,878.3 Shareholders € million 146.5 150.1 State (taxes) € million 130.5 140.5 Lenders (interest) € million 127.8 137.2 Changes in the financial position from the added value statement € million – 14.0 – 1,228.5 LOG noise area: Area affected by a Leq of 55 dB(A) day FRA site ha 17,582 16,952

Environment Area of application Unit 2018 2017

1) Absolute CO2 emissions Group t CO2 244,029 209,668

Absolute CO2 emissions Fraport AG t CO2 188,631 190,065

2) Relative CO2 emissions Fraport AG kg CO2 per traffic unit 2.07 2.2 Total energy consumption (scopes 1 and 2) Group TJ 3,278.1 2,995.7 Proportion of fully consolidated Group companies with an environmental management system Group % 86.7 89.3 Total water withdrawal Group million m³ 2.193 1.873 Group Liters per traffic unit 2) 17.7 16.1 Waste water Group million m³ 2.476 2.432 Group Liters per traffic unit 2) 20.0 20.9 Waste Group 1.000 t 28.27 26.32 Number per 10,000 aircraft Wildlife strike rate FRA site movements 5.34 5.59

1) Includes Fraport AG and Fraport Greece as well as the Group companies GCS, FraGround, Fraport Slovenija, Lima, Fortaleza, Porto Alegre, and Twin Star. 2) One traffic unit is equivalent to one passenger or 100 kg of air freight. 124 Key Figures Sustainability Report 2018

Employees in the Fraport Group

Employees of the fully consolidated companies as at the balance sheet date December 31. 2018 2017

Fraport parent company (Fraport AG) 10,595 10,747 Subsidiaries (Name and registered office) Media Frankfurt GmbH, Frankfurt am Main 49 49 Airport Assekuranz Vermittlungs-GmbH, Neu-Isenburg 12 12 Airport Cater Service GmbH, Frankfurt am Main 132 132 GCS Gesellschaft für Cleaning Service mbH & Co. Airport Frankfurt/Main KG, Frankfurt am Main 729 689 Flughafen Kanalreinigungsgesellschaft mbH, Kelsterbach 27 23 Fraport Ausbau Süd GmbH, Frankfurt am Main 9 4 AirlT Services GmbH, Lautzenhausen 24 19 FraSec Fraport Security Services GmbH, Frankfurt am Main 4,110 3,697 FraSec Fraport Security Services K9 TEDD GmbH Twickelerveld European Detection Dogs, Frankfurt am Main 9 0 FraGround Fraport Ground Services GmbH, Frankfurt am Main 3,744 3,331 Fraport Passenger Service GmbH, Frankfurt am Main 186 163 FraCareServices GmbH, Frankfurt am Main 770 582 Fraport Casa GmbH, Neu-Isenburg 2 2 FRA-Vorfeldkontrolle GmbH, Kelsterbach 99 94 Fraport Casa Commercial GmbH, Neu-Isenburg 1 1 Fraport Group Germany (mainly Frankfurt site) 20,498 19,545

Fraport Peru S.A.C., Lima, Peru 7 8 Antalya Havalimani Uluslararasi Terminal Isletmeciligi Anonim Sirketi, Istanbul, Turkey 10 10 Fraport Twin Star Airport Management AD, Varna, Bulgaria 689 694 Fraport Slovenija (previously: Aerodrom Ljubljana) 483 428 Lima Airport Partners S.R.L., Lima, Peru 555 493 Fraport Saudi Arabia for Airport Management and Development Services Company Ltd., Riyadh, Saudi Arabia 2 2 Fraport USA Inc., Pittsburgh, PA, USA 37 30 Fraport Regional Airports of Greece A S.A. Athens, Greece 230 216 Fraport Regional Airports of Greece B S.A. Athens, Greece 197 180 Fraport Regional Airports of Greece Management Company S.A. Athens, Greece 199 168 Fraport Brasil S.A. Aeroporto de Porto Alegre, Porto Alegre, Brazil 237 159 Fraport Brasil S.A. Aeroporto de Fortaleza, Fortaleza, Brazil 147 91 Fraport Malta Ltd., St. Julians, Malta 4 0 Fraport Malta Business Services Ltd., St. Julians, Malta 4 0 Fraport Group companies outside of Germany 2,801 2,479

Fraport Group total 23,299 22,024

You can find many other key figures in our GRI Report at www.fraport.de/responsibility. Sustainability Report 2018 About this Report 125

About This Report

The “Our Values – 2018 Sustainability implement them, and contributes to Report” informs our stakeholders and their recognition, including beyond the the interested public in brief form company itself. This publication, along about the economic development of side the GRI report, is also used as a Fraport Group and its objectives, activi progress report relating to the imple ties, and progress relating to responsible mentation of the ten principles in corpo corporate governance.1) We publish rate management. The reports are also further information on our website at the basis and source of our statement www.fraport.com/responsibility in of compliance with the German Sustain accordance with the standard of the ability Code. Global Reporting Initiative (GRI core version) in a separate report, including The information in our 2018 Sustainability the industry-specific additional indi Report covers all Group activities, prod cators for airport operators. ucts, and services and all companies that are consolidated according to the regu The selection of the report content is lations on financial reporting issued by based on the regular exchange of views the International Accounting Standards with our stakeholders and a comprehen Board on the relevant balance sheet date sive materiality analysis. In this regard, or have significant environmental effects we have defined the areas of activity within this framework. Since it is by far which are significant for Fraport and the largest site of the Group, Frankfurt is positioned them in a materiality matrix the focus of our reporting. You can find according to their importance for the detailed information about our data stakeholders and the Group. As part of a collection in the GRI Report. program, Fraport has set objectives and performance figures for most areas of Our reports are published annually in activity as well as defined measures for both German and English, and cover achieving the objectives. the reporting period from January 1 to December 31 of the year concerned. Fraport respects and supports the ten The editorial deadline for this report was principles of the UN Global Compact, April 2019. The previous report was develops and implements measures to published on May 3, 2018.

1) Where the statements made in this document relate to the future rather than the past, these state ments are based on a number of assumptions about future events and are subject to a number of uncertainties and other factors, many of which are beyond the control of Fraport AG Frankfurt Airport Services Worldwide and which could have the effect that the actual results will differ materially from these statements. These factors include, but are not limited to, the competitive environment in dereg ulated markets, regulatory changes, the success of business operations, and a substantial deterioration in the underlying economic conditions in the markets in which Fraport AG Frankfurt Airport Services Worldwide and its Group companies operate. Readers are cautioned not to rely to an inappropriately large extent on statements made about the future. 126 Imprint Sustainability Report 2018

Imprint

Editor Fraport AG Frankfurt Airport Services Worldwide 60547 Frankfurt am Main Germany Telephone: +49 (0) 180 6 3724636 1) Website: www.fraport.com

Contact Investor Relations Telephone: +49 (0) 69 690-74840 Fax: +49 (0) 69 690-74843 Website: www.fraport.com/responsibility E-mail: [email protected]

Concept and Design MPM Corporate Communication Solutions, Mainz, Düsseldorf www.mpm.de

Photography Frank Blümler Eva Brendel Oliver Rösler, oro-photography Photo archive, Fraport AG

Printing Kern GmbH, Bexbach

Publication Date May 2019

Editorial Deadline April 2019

1) 20 cents (€) per call from a German landline; maximum 60 cents (€) per call from a German cell phone.

Fraport AG Frankfurt Airport Services Worldwide Finance & Investor Relations 60547 Frankfurt/Main Sustainability Report 2018 www.fraport.com Fraport AG