Fraport Annual Report 2013 behind theScenes Annual Report2013 Group

At a Glance The Fraport Group operates internationally at 13 and belongs to the world’s leading airport operators. The Group’s main site is , one of the world’s major air traffic hubs. Divided into four segments, Fraport had a workforce of more than 20,000 employees and generated revenue of € 2.56 billion in 2013. Group EBITDA stood at € 880.2 million, and the Group result was € 235.7 million. Listed since 2001, the parent company of the Fraport Group, Fraport AG, is headquartered in Frankfurt am Main.

Financial performance indicators

€ million 2013 2012 Change in %

Revenue 2,561.4 2,442.0 4.9

EBITDA 880.2 848.7 3.7

EBIT 528.1 496.0 6.5

EBT 340.7 364.1 – 6.4

Group result 235.7 251.5 – 6.3

Profit attributable to shareholders of Fraport AG 221.0 238.2 – 7.2

Earnings per share (basic) (€) 2.40 2.59 – 7.3

Year-end closing price of the Fraport share (€) 54.39 43.94 23.8

Dividend per share 1) (€) 1.25 1.25 0.0

Operating cash flow 574.8 553.0 3.9

Free cash flow 73.1 –162.4 –

Total assets 9,523.4 9,640.6 –1.2

Shareholders’ equity 3,098.8 2,948.2 5.1

Group liquidity 1,486.3 1,663.1 –10.6

Net financial debt 2,975.4 2,934.5 1.4

Return on revenue (%) 13.3 14.9 –

Return on shareholders’ equity (%) 7.5 8.5 –

EBITDA margin (%) 34.4 34.8 –

EBIT margin (%) 20.6 20.3 –

ROCE (%) 8.9 8.7 –

ROFRA (%) 9.5 9.6 –

Gearing ratio (%) 101.3 104.9 –

Table 1

Non-financial performance indicators

2013 2012 Change in %

Global satisfaction (Frankfurt) (%) 80 80 –

Punctuality rate (Frankfurt) (%) 82.3 80.3 –

Baggage connectivity (Frankfurt) (%) 98.4 98.2 –

Equipment availability (Frankfurt) (%) 94.8 95.0 –

Employee satisfaction 2) 3.02 – –

Total number of work accidents 1,346 1,445 – 6.9

Table 2

Employees

2013 2012 Change in %

Average number of employees 20,947 20,963 – 0.1

1) Proposed dividend (2013). Table 3 2) No employee satisfaction survey took place for the 2012 fiscal year. Fraport Segments

Aviation Aviation The Aviation segment includes airside and terminal management € million 2013 2012 Change as well as corporate safety and security at the Frankfurt site. The in % growth in traffic and the increase in airport charges boosted revenue by 2.6 % to € 845.2 million in the previous fiscal year. Revenue 845.2 823.4 2.6 With a workforce of 6,194 employees the segment achieved EBITDA 205.4 201.9 1.7 EBITDA of € 205.4 million. EBITDA margin 24.3 % 24.5 % – EBIT 88.1 79.6 10.7

ROFRA 4.0 % 3.9 % –

Average number of employees 6,194 6,298 –1.7

Table 4

Retail & Real Estate Retail & Real Estate The Retail & Real Estate segment consists of retailing activities, € million 2013 2012 Change parking facility and real estate management at Frankfurt Airport. in % In the fiscal year 2013 Pier A-Plus in particular, which was inau- gurated in October 2012, boosted revenue and EBITDA. With Revenue 469.0 452.9 3.6 a workforce of 648 employees, the segment generated revenue EBITDA 350.7 335.2 4.6 of € 469.0 million and EBITDA of € 350.7 million. EBITDA margin 74.8 % 74.0 % – EBIT 267.9 252.8 6.0

ROFRA 15.0 % 15.5 % –

Average number of employees 648 629 3.0

Table 5

Ground Handling Ground Handling

The core business of the Ground Handling segment comprises Fraport Group and Segments € million 2013 2012 Change all services dealing with passengers, aircraft and cargo. With a in % workforce of 9,017 employees, the most staff-intensive seg- ment at the Frankfurt site achieved revenue growth of 1.1 % to Revenue 656.2 649.3 1.1 € 656.2 million in the previous fiscal year, thanks to the growth EBITDA 38.2 37.8 1.1 in traffic and the increase in infrastructure charges. EBITDA for EBITDA margin 5.8 % 5.8 % – the segment was € 38.2 million. EBIT – 2.3 –1.1 – ROFRA – 0.4 % – 0.2 % –

Average number of employees 9,017 8,924 1.0

Table 6

External Activities & Services External Activities & Services The External Activities & Services segment comprises the Group € million 2013 2012 Change companies outside the Frankfurt site and auxiliary services in in % Frankfurt, including IT and facility management in particular. The growth in foreign companies was the main factor behind an Revenue 591.0 516.4 14.4 increase in revenue of 14.4 %. With revenue of € 591.0 million, EBITDA 285.9 273.8 4.4 the segment posted EBITDA of € 285.9 million in fiscal year 2013. EBITDA margin 48.4 % 53.0 % – EBIT 174.4 164.7 5.9

ROFRA 14.0 % 15.7 % –

Average number of employees 5,088 5,112 – 0.5

Table 7 About this Report

The present Annual Report enables Fraport to render account for the fiscal year 2013. The data and comments concerning the asset, financial and earnings position have been prepared in compliance with the accounting and disclosure standards to be applied to the fiscal year 2013. The disclosures contained in the Business Outlook also take the accounting standards to be applied as from January 1, 2014 into consideration and can be found from page 84 onwards of the Report.

To increase the currency of the Report, Fraport has taken into consideration relevant disclosures concerning events that occurred up to the Responsibility Statement and Auditor’s Report by PricewaterhouseCoopers AG on March 4, 2014.

The Annual Report is published in German and English.

1 To our Shareholders 3 Consolidated Financial Statements

Letter of the CEO 4 Consolidated Income Statement 92 The Fraport Executive Board 8 Consolidated Statement of Comprehensive Income 93 Report of the Supervisory Board 10 Consolidated Statement of Financial Position 94 Statement on Corporate Governance and Consolidated Statement of Cash Flows 95 Corporate Governance Report 16 Consolidated Statement of Changes in Equity 96 Consolidated Statement of Changes in 98 non-current Assets Segment Reporting 100 Group Management Report 2 Group Notes 102 Notes to the Consolidation and Accounting Policies 102 Overview of Business Development 24 Notes to the Consolidated Income Statement 120 Situation of the Group 26 Notes to the Consolidated Financial Position 128 Operating Activities 26 Notes to the Segment Reporting 154 Structure 26 Notes to the Consolidated Statement of Cash Flows 155 Strategy 29 Other Disclosures 156 Control 32 Legal Disclosures 35 Remuneration Report 36 Further Information Economic Report 44 4 General Statement of the Executive Board 44 Economic and industry-specific Conditions 44 Responsibility Statement 194 Significant Events 45 Auditor’s Report 195 Business Development 46 Seven-Year Overview 196 Results of Operations 48 List of Graphics and Tables 198 Segments 50 Glossary 200 Asset and Financial Position 53 Financial Calendar 2014 C5 Value Management 59 Traffic Calendar 2014 C5 Non-financial Performance Indicators 60 Imprint C5 Employees 61 Research and Development 63 Share and Investor Relations 63 Significant Events after the Balance Sheet Date 67 Outlook Report 67 General Statement of the Executive Board 67 Risk and Opportunities Report 67 Business Outlook 84 Page 90 Ground Handling Page 2 Aviation of the airport live. airport of the world fascinating the You andexperience processes Fraport onsite atour airport during ofthe canalsoget anideaoffurther AnnualReport. sectiondividersofthis the scenes” “behindthe to ensure aseamlesstravelingservices processes Someofthese are presented experience. to you on provideare visibleto suchascheck-in them, amuchbroader control, anditsbusinesspartners range orsecurity of Fraport processes that airport the world. only experience inthe Whilepassengers andcargo airports largestpassenger one ofthe and more is 58 million passengers twoWith than million metric tons of air freight Airport and air mail handled,Frankfurt Frankfurt AirportbehindtheScenes External Activities&Services Retail &RealEstate Page 192 Page 22 1

Further Information Consolidated Financial Statements GroupGroup ManagementManagement Report To our Shareholders 2 Fraport Annual Report 2013 To our Shareholders Aviation Fraport AnnualReport2013 the airfield lightsarefunctioningbycoveringthetake-offandlanding runwaysystemonaregularbasis. the airfield to acomputer-controlledsystem,whichreportsdefectivehalogenorLEDlamps,Fraportemployeescheckthat lightsonanas-requiredandcyclicalbasis. Inaddition system isalwaysreadyforuse,Fraportmaintainstheairfield lights thatmarkthewaysbetweentake-offandlandingrunwaysystemterminal.To ensurethatthe daily aircraft movements. Seamless airport operations would be impossible without the use of about 17,000 airfield In the previous fiscal yearabout 473,000 aircraft tookoff and landed at Frankfurt. This equatedto about 1,300 A good 17,000 airfield lights... To ourShareholders 3

Further Information Consolidated Financial Statements GroupGroup ManagementManagement Report To our Shareholders 2 Fraport Annual Report 2013 To our Shareholders

...with uninterrupted energy supply

Fraport monitors the uninterrupted energy supply of Frankfurt Airport on a centralized basis and ensures this by means of a redundantly configured power supply system. Even if the power supply system fails, Fraport can guarantee an energy supply to the take-off and landing system by using several oversized diesel motors. Direct refueling of the motors, whose tanks hold about 40,000 liters of diesel, ensures that airport operations can be constantly maintained in an emergency. Fraport requires about 600 million kilowatt hours annually to operate the Frankfurt site. Fraport AnnualReport2013 To ourShareholders 3

Group Management Report To our Shareholders 4 Fraport Annual Report 2013 To our Shareholders / Letter of the CEO

Dr Stefan Schulte Chairman of the Executive Board Fraport AG Fraport AnnualReport2013 high non-recurring income in the previous incomeinthe high non-recurring year financial asset the within management. previous year figure ataround 236millionEuros.this includedamong Thecausesof others fiscal ofthe year,start the Group result in2013 16millionEuroswas almost lowerthe than Due to worsening the Group ofthe financial result whichhadalready been forecastedthe at 528 millionEuros, both exceeded previous the year’s figures by morethan 30millionEuros. which amounted to around 880millionEuros, andGroup EBIT, whichamounted to agood operating indicators fiscal ofthe keyyear 2013.Theimportant figures of Group EBITDA, The Group-wide positive traffic development performance wasalso reflected thefinancial in now have sufficientcapacity expected toaccommodate the traffic growth. and . Theopeningofnew terminalsthree sites investments atthose the meansthat year we foundations alsolaidthe for future growth inourinvestments in St. Petersburg, Varna strong the result previousmore notwithstanding inthe passengers year. Over fiscal past the investment atAntalya alsosawgrowth, significantpassenger welcoming around seven percent site’s the meant that growth terms inpercentage was indoubledigits.Ourairport again country’s have upturn economicprosperity intourism. 15millionpassengers andthe Almost whichcontinuedto ourinvestment benefitfromthe light inparticular atLimaAirport, were alsodoingwell. ourGroup airports Iwould like Airport, Outside ofFrankfurt to high- Paris-Charles deGaulle. runner inEurope year, last was largestcargo airport the thus previous aheadofthe Airport front alsodevelopedFrankfurt favorably, increasing to 2.1 almost millionmetric tons. Frankfurt onepercent ofalmost passengers to more 58million.Thecargo tonnage than handledin the fiscal of finalmonths booking numbersinthe yearhelpedus toachieve anincrease in summerseasonandsolid numbersatourmainsite agood declining passenger inFrankfurt, Your well companythe fiscal past to inthe with year year. hasperformed start adifficult After Letter oftheCEO To ourShareholders/LetteroftheCEO

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Group Management Report To our Shareholders 6 Fraport Annual Report 2013 To our Shareholders / Letter of the CEO

Despite the decreasing Group result, we will be proposing an unchanged dividend of 1.25 Euro per share to you at our Annual General Meeting at the end of May this year. This would be equivalent to a pay-out ratio of around 52 percent of the underlying Group result.

Aviation market in Europe remains under pressure Dear Shareholders, the aviation market in Europe continues to be characterized by high intensity of competition. This is caused by various factors such as the persistently weak macroeconomic environment in Europe, price-sensitive demand, the continuing success of so-called low-cost providers and the undiminished high level of growth of new competitors from the Middle East. In this environment, the German aviation tax and the emissions trading scheme which currently only applies to flights within the additionally comprise considerable competitive disadvantages for the domestic aviation industry. Your company nevertheless performed well at Frankfurt Airport in 2013, despite these difficult circumstances, and also expects further passenger and cargo growth for 2014.

As our economic system becomes increasingly collaborative on both a national and international level, it requires excellent mobility options for road, rail and air. With around 300 destinations, Frankfurt Airport is ’s “gate to the world”. At the same time we are seeing greater sensitization amongst the population to sources of noise, irrespective of the carrier in question. That is why in 2013, we, together with our partners in the “Alliance for Noise Abatement”, also gave high priority to working on further reducing the impact of aircraft noise within the framework of the legally, technically and operationally feasible. For example, we have decided to invest in a new satellite-supported ground-based augmentation system (GBAS) at Frankfurt Airport. If aircraft have corresponding technical equipment and authorization is granted by the supervisory authorities, GBAS will mean that aircraft can also land on the south and center runways at a raised approach angle of 3.2 degrees.In addition, we are giving the further commercial incentives to fly the passenger growth at Frankfurt Airport with low-noise aircraft with our “FRAConnect” program.

Outlook for 2014 Despite the recent positive traffic development, 2014 will again be a challenging year for your company. In view of the competitive environment, we will continue to invest in a more customer-friendly layout of our airport at the Frankfurt site. At the same time, we need to further speed up our processes and make them more efficient without lowering our sights regarding high quality. Fraport AnnualReport2013 Stefan Schulte Sincerely yours, ahead ofustogether. in usandfor opendialog.Let’s the shapeFraport’s whichlie challenges future the andface We would alsolike to you, thank ouresteemed shareholders, you for trust have the placed whole Executive Board. of ouremployees, andIwould toonbehalfofthe like them thank to take opportunity this This growth willalsobein2014only dedicationandgreat possiblethrough the commitment for fiscal year 2013. expect apositiveWe alsotheGroup in change result compared to 2013. figures for 2014isaccordingly around 40 the adjustedto 60millionEurosthan figures higher comparativeand the figure for EBIT would have been439millionEuros. The forecast for both corresponding comparative figure for EBITDA would have beenaround 733millionEuros If we hadalready to accountingstandard figures appliedthis the the 2013fiscalfor year, the current fiscal the year. Group’sin the in the figures of financial reported result, whichwilllead to adistortion investment Theresult from Antalya willfrom ononly bereported then inAntalya Airport. affects our ventures inGroup accounting,whichinourcaseparticularly proportionately option bethe 1,2014,there to willnolonger consolidate joint asofJanuary means that which hastoaccounting standard beappliedfrom fiscal year 2014onwards.standard This likeyearthis looks adecrease.glance However, 2013,atfirst this issolely due to achanged 500 millionEuros for 2014fiscal the year. Compared the aforementionedto figures forfiscal mately 780andsome800millionEuros andGroup EBITto develop towards upto around expect aGroup respectwe EBITDAWith to financialperformance, ofbetween approxi- siteFrankfurt for current fiscal the year andcontinuingpositive development atGroup airports. Expressed in figures, growth expecting passenger we are oftwo threeto percentthe at To ourShareholders/LetteroftheCEO 7

Group Management Report To our Shareholders 8 Fraport Annual Report 2013 To our Shareholders / The Fraport Executive Board

The Fraport Executive Board

The strategic and operational responsibility for Fraport AG and its worldwide Group companies lies with the Executive Board. In the previous fiscal year the Fraport Executive Board comprised five members: Dr Stefan Schulte (Chair), Anke Giesen, Michael Müller, Peter Schmitz and Dr Matthias Zieschang.

The appointment of Executive Board members is the responsibility of the company’s Supervisory Board. The Annual General Meeting formally approves the Executive Board’s actions. Fraport AnnualReport2013 To ourShareholders/TheFraportExecutiveBoard Appointed untilAugust31,2014 in1950 Born Executive Director Operations Peter Schmitz Appointed untilDecember31,2017 in1963 Born Executive Director Ground Handling Anke Giesen Appointed untilAugust31,2019 in1960 Born Executive ofthe Chairman Board Schulte Stefan Dr Appointed untilMarch 31,2017 in1961 Born Executive Director Controlling andFinance Dr Matthias Zieschang Appointed untilSeptember 30,2017 in1957 Born Executive Director LaborRelations Michael Müller to right) (from left The Fraport Executive Board 9

Group Management Report To our Shareholders 10 Fraport Annual Report 2013 To our Shareholders / Report of the Supervisory Board

Karlheinz Weimar Chairman of the Supervisory Board Fraport AG Fraport AnnualReport2013 > > following the regularBesides this matters reporting, were extensively discussedinparticular: year.of the development European ofthe economy recoverynumbersplayed andthe inpassenger aprominent role over course the Board. Theimproved were developmentearnings subjectofregular the discussionsby Airport, Supervisory atFrankfurt the The businessdevelopment traffic emphasis onthe and Group Fraport anditsGroup ofthe aparticular companies, with Focal points of the consultation Board of the Supervisory infewer Board took part meetings halfofthe than Board. ofthe Supervisory of the special meeting. Onaverage for meetings, allofthe around 98 Board convened five meetings, Supervisory the period, onestrategy ordinary reporting the During session and one and consulted matters. onthose Board voted relevant onthe proposals Supervisory madebythe Executive the having Board thoroughly after examined to company. the importance fundamental Where required by law, company the ofinternal procedure, orrules statutes Board was directly involvedas well as significantbusinesstransactions. TheSupervisory that the decisions inall were of Board andinformedcurrent developments himaboutthe businesssituation the concerning Supervisory ofthe Chairman company Executive the with Executive Board.ofthe Chairman Inaddition, the the with Boardregular contact maintained business transactionsstrategic ofsignificance Boardthe the company. to harmonized the alignmentof TheSupervisory Board hasextensively discussedthe Executive ofthe Board. reports Board, Basedonthe Supervisory the Supervisory Board matters. onthese Deviations development inthe ofbusinessfrom planningwere the indetail to explained the velopment company ofthe Group andthe aswell assignificantbusinesstransactions, andconsultedthe Executive with future andcorporate questionsconcerning management situationandde- business policies,fundamental planning,the regular,obtained timely andcomprehensive information from Executive the Board, and orally, inwriting proposed onthe Boardprocedure andcontinuously monitored company ofthe management the infiscal year 2013.TheSupervisory incumbentonitunderlaw, tasks allthe Board company the performed ofinternal andrules statutes The Supervisory Board Report oftheSupervisory > > times at security controlstimes atsecurity atyear-end were attended. critically improvement asaresult “Great satisfaction ofthe ofpassenger to have initiative. you Additionally, here!” service waiting terminals pleasedto wereprocesses existing note inthe Board was reviewed. the particularly Here, Supervisory the Alternatives terminal ofthe were to construction the demandforecast discussed,the was reviewed critically andthe In addition, more detailed information was provided plans for about the Terminal Airport. side of Frankfurt south 3 on the ofroofsecuring tiles. canmakeowners flightpaths aclaim ofapproximatelythefor anddeparting arriving the 3,000buildingsbeneath focus was program the toparticular secure roofing from ofwind caused gusts by wakethe turbulences, underwhich Board. Inaddition under to Supervisory the regular ofthe reporting been extended to October 31,2014,formed part applicationdeadlinefor the whichhas real program, estate CASA, voluntary ofthe status current implementation the was implemented beginningof 2013 inorder at the to give greater airlines incentive to use quieter airplanes. Also charges Board. Additional spreading ofnoise-based airport effectivenesstheir beingsubmitted the Supervisory to 19 measures for active noiseabatement were definedandwillbeimplemented successively, on with regular reports 2012,active “alliancefor ofthe andpassive noiseabatement” concludedalready inFebruary noiseabatement. Aspart Boardextensive alsoobtained information onvarious measures andinitiatives to improve Supervisory In 2013,the % of the members took part in the meetings. inthe Nomember memberstook% ofthe part To Board ourShareholders/ReportoftheSupervisory

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Group Management Report To our Shareholders 12 Fraport Annual Report 2013 To our Shareholders / Report of the Supervisory Board

>> As a continuation of the internationalization strategy of the Group, the Supervisory Board agreed to the participation in the tender process for the new international at its special meeting held on April 29, 2013. Furthermore, it authorized the investment and capital expenditure committee with the final decision regarding the tender process in Rio de Janeiro after thorough prior consultation. The committee agreed to submit an offer for the concession at its special meeting on November 8, 2013. >> With respect to the investment in Manila, the Supervisory Board continued to support the efforts in and out of court in reaching an appropriate compensation agreement with the Philippine government for the capital expenditure made in connection with the construction of Terminal 3 at Manila Airport. The progress of the ICSID arbitration proceedings in Washington, for which hearings took place in the fall of 2013, remained the subject of particular focus. >> In addition, the Supervisory Board dealt with the financial statements and management reports of the company and the Group as at December 31, 2012, the agenda and the including resolution proposals for the Annual General Meeting (AGM) on May 31, 2013, as well as the 2012 Annual Report. Furthermore, the Supervisory Board has decided to pro- pose to the AGM that PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, be appointed as the auditor for fiscal year 2013 in accordance with the scheduled cyclical change of auditors.

Furthermore, the Supervisory Board made specific decisions on the following subjects, among others:

>> As a continuation of its previous resolution, the Supervisory Board agreed to implement the expansion of the south of Frankfurt Airport in accordance with the zoning decision and the current version of the preliminary plan. >> It authorized the executive committee’s expansion from six to eight members and, on its recommendation with regard to Section 4.2.3 (2) of the German Corporate Governance Code (GCGC), agreed to the introduction of upper amount limits for the variable remuneration elements of the Executive Board’s remuneration, on which no agreement had thus far been made. The Executive Board’s remuneration now specifies upper amount limits as a whole and with respect to all variable remuneration. >> It also approved the 2014 Business Plan.

As part of its strategy session in mid-June 2013, the Supervisory Board also addressed in more detail the challenges arising for Frankfurt Airport as a result of the deteriorating market environment in particular. Measures for structural counteraction in view of the negative traffic development in the first six months of 2013 were also discussed. Further topics of discus- sion were freight as a major factor for success for the site and the critical compliance with the planned revised version of EU ground handling services guidelines.

Work of the committees The Supervisory Board continued its successful work with the committees it had formed to increase the efficiency of its work and to prepare for the Supervisory Board meetings. In individual appropriate cases and in accordance with law, decision-making powers of the Supervisory Board were granted to the committees. The chairpersons of the committees provided regular reports at the next Supervisory Board meeting to the plenum of the Supervisory Board on the work of the committees. The composition and responsibilities of the individual committees can be found in the chapter “Statement on Corporate Governance and Corporate Governance Report” as well as on the Group’s website www.fraport.com under the section The Fraport Group.

The finance and audit committee met seven times during the reporting period and discussed significant business transactions, the annual and consolidated financial statements, the management reports and the recommendation for the appropriation of profit to the AGM, respectively, the amount of the dividend. Representatives of the auditor often participated in the meetings on individual agenda items. The finance and audit committee prepared the determination of the focal points of the 2013 audit for the Supervisory Board. The half-year interim report and the other interim reports were discussed in detail prior to their publication. Comments were also made on the 2014 Business Plan of Fraport AG (prepared in accordance with the German Commercial Code, HGB) and the 2014 Group Plan (prepared in accordance with IFRS). Furthermore, the finance and audit committee dealt with the issuance of awarding the audit mandate to the auditor and made a proposal to the plenum for the election of the auditor for fiscal year 2013. In this context, the audi- tor’s confirmation of independence pursuant to Section 7.2.1 of the GCGC was obtained, the qualification of the auditor monitored and the remuneration of same discussed. Furthermore, the issue of mandates for non-audit-related services Fraport AnnualReport2013 limits complying fully to recommendation, the inadditionto upperamountlimitsalready those inexistence. incumbentExecutive GCGC),the of the upperamount Board membersagreed onDecember17,2013to supplementary should beindicated inclusive of upper amount limits for variable the remuneration elements (Section 4.2.3 (2), sentence 6 In accordance recommendation remuneration the recently the with code,that includedinthe for Executive Board members were presented by Government the CommissiononMay 13,2013. Board have developmentsThe Executive GCGCthat addressed ofthe further indetail the Board Supervisory andthe compliance of statements and Governance Corporate fiscal year 2013. to conveneIt was not necessary mediationcommittee Co-Determination the inaccordance German the with Act in endof2013. at the cyclically stood for election,andonceto provide advice regarding successionofMr. the hisleaving Stefan H.Lauerafter 2013 fiscal once to prepareyear: the candidate list the for AGM onMay 31,2013,inwhichallshareholder representatives The regard with to recent most the recommendation GCGCGovernment ofthe particular Commission. Executive ofthe Chairman of the Board, DrSchulte, aswell Executive ofthe adjustment asthe Board’s remuneration, in fiscal year. Boardthe on reappointmentexecutivethe Inaddition, committee preparedthe the Supervisory resolutions of determinationremuneration year ofall,the performance-related fiscal components ofthe for 2013and,first past the The were ofleanmanagement establishment alsofocal proceedings. pointsofthe development oftop executives, concept reintegration the ofthe employees ofexpatriate returning abroad aswell asthe topics remuneration suchasthe year system ofthe 2013,further for seniorexecutives,by start Ms.Giesensincethe discussion.Through “HRTop ofthe the guidelinesalsoformed part Executives”handling services managed department, remuneration forGroup socialandemployment inthe ofground andthe seniormanagers regulations EUdraft inthe current wage Group issuesinthe and,onfederal management, health level, ofapron supervision, restructuring the to humanresources Group. development the Alongsidethe within workforce, ofthe topics the ofvocational training, The investment 2014BusinessPlan. context ofthe planinthe amMainsite Frankfurt andcommented atthe expenditure committee the onthe capital assisted the with Furthermore, The development ofnationalGroup companies operatingsite Frankfurt mainly were atthe alsoconsidered, however. Antalya,with Lima,St. Petersburg aswell focus, asVarna ofregular were reporting. andBurgas inparticular alsopart ofitssecondspecialmeeting onNovember Board aspart Group companies, 8,2013.Theexisting by Supervisory the it agreed to submitthean correspondingoffer basedonauthorization the concession for regarding Rio deJaneiro Airport Board specialmeeting initsfirst 26,2013.Inaddition,asalready onApril mentioned, resolution entire ofthe Supervisory andtherefore tender inthe process prepared for new corresponding the the Airport participation international Istanbul regard for With expenditure. area tobusiness andthe ofcapital activitiesabroad, committee the itssupport expressed expenditure committee businessdevelopment infiscal capital year 2013 the investment of the further were again meetings aswellIn itsfour ordinary astwo specialmeetings, focal investment the discussionsofthe pointsofthe and Board was appropriately informed. Supervisory control system, internal the auditsystem aswell system compliance management asthe indetail andensured the that the internal the committeeriskmanagement, Inaddition, the discussed consolidatedor the interim financial reports. Stockin accordance German Section90ofthe with Corporation Act (AktG)to consolidated the statements and/ financial focal proceedings pointsofthe wereFurther report asset aswell andliabilitymanagement regular asthe supplementary to AGM the asauditor for fiscal year 2013. amMain, Frankfurt plenum to Wirtschaftsprüfungsgesellschaft, recommend PricewaterhouseCoopers Aktiengesellschaft to auditor the was discussed.Inaccordance cyclical the with auditor, ofthe scheduledchange itwas proposed to the nomination committee formed for preparing for new the election ofshareholder representatives met twiceinthe human resources committee met four timesinfiscal year 2013and was involvedregularly the with topics related executive Executive Itdealtwith committee period. met five Boardthe reporting matters timesduring in arising To Board ourShareholders/ReportoftheSupervisory

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Group Management Report To our Shareholders 14 Fraport Annual Report 2013 To our Shareholders / Report of the Supervisory Board

Fraport AG is therefore in alignment with the recommendations of the GCGC Government Commission and will continue to be in future.

In continuation of examining the efficiency of its activities from the previous year, the Supervisory Board commissioned an external advisor with the evaluation of its statutes and rules of internal procedure in fiscal year 2013, particularly with regard to the adequacy of the defined numerical limits that trigger approval or reporting obligations. Ultimately, it commis- sioned the Corporate Governance work group (formed of its own members) to develop specific proposals to the plenum.

Further details on Corporate Governance as well as the text of the current statement of compliance pursuant to Section 161 of the AktG made by the Executive Board and Supervisory Board on December 17, 2013 can be found in the chapter “Statement on Corporate Governance and Corporate Governance Report” starting on page 16. The Fraport code and the current and past statements of compliance can also be found on the Group’s website www.fraport.com under the section The Fraport Group.

Conflicts of interest and their treatment In fiscal year 2013, there was no indication of the existence of potential conflicts of interest.

Annual and consolidated financial statements PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft audited the annual financial statements of Fraport AG and the consolidated financial statements as at December 31, 2013 as well as the management report and Group management report and issued unqualified auditor’s reports. The Supervisory Board issued the audit mandate on January 20, 2014 in accordance with the resolution passed by the AGM on May 31, 2013.

The annual financial statements and the management report were prepared and audited by the auditor in accordance with the regulations of the HGB applicable to large capital companies, the consolidated financial statements and the Group management report were prepared and audited by the auditor in accordance with IFRS as they apply in the EU. The consolidated financial statements and the Group management report meet the conditions for exemption from the preparation of consolidated financial statements in accordance with German law. The auditor established that an early risk warning system that meets the legal requirements and which makes it possible to identify at an early stage develop- ments that may put the continued existence of the Company at risk was in place.

The documents mentioned as well as the proposal by the Executive Board for the utilization of profits have been sent to the Supervisory Board by the Executive Board without delay. The finance and audit committee of the Supervisory Board examined these documents extensively and the Supervisory Board reviewed them also personally. The audit reports of PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft and the financial statements were available to all the members of the Supervisory Board, and were comprehensively dealt with in the accounting meeting of the Supervisory Board in the presence of the auditors who reported on significant results of their audit, and were available to respond to additional questions and provide further information. The chairwoman of the finance and audit committee provided in the meeting a comprehensive report on the treatment of the annual financial statements and the consoli- dated financial statements in the committee. The Supervisory Board approved the results of the annual audit. After the completion of the audit by the finance and audit committee and its own review, the Supervisory Board did not raise any objections. The Supervisory Board approved the annual financial statements prepared by the Executive Board; the annual financial statements were thus adopted.

The Supervisory Board approved the proposal by the Executive Board to use the profit earmarked for distribution to pay a dividend of € 1.25 per no-par value share.

The report prepared by the Executive Board on the relationships of Fraport AG with affiliated companies pursuant to Section 312 of the AktG was submitted to the Supervisory Board. The report concludes with the following statement by the Executive Board, which is also included in the management report: Fraport AnnualReport2013 (Chairman of the Supervisory Board) Supervisory ofthe (Chairman WeimarKarlheinz am Main, MarchFrankfurt 21,2014 interestsin the company. ofthe Executive the Board thanks Board company’s andthe Supervisory the industry, employees for dedicated their commitment year, 2013fiscal Looking backonthe environment European inthe whichwas aviation successfuldespite adifficult Executivethe Board, whichendsonAugust31,2014. Board alsoacknowledged Mr.The Supervisory Peter Schmitz’s intention not to extend hisappointmentasmemberof Dr SchulteExecutive ofthe asChairman Board effect five with ofSeptember 1,2014 for afurther yearsuntil31,2019. August regardBoardWith alsoagreed to to Executive appointmentof the the Board, onSeptember Supervisory 2,2013,the Board onDecember31,2013. Supervisory 10,2014.Mr. Boardmandate assumesthe onFebruary Garnadt ofMr. Stefan H.Lauer, Supervisory the the wholeft amMainappointed CityofFrankfurt Mr. ofthe to Garnadt Ulrich competent court In addition,the Karl trade registry Mr. Chairman. Gerold SchaubasVice Board reelected Mr. meetingIn itsconstituent Weimar onMay Karlheinz and Supervisory asChairman 31,2013,the and Prof Dr-Ing Windt. Katja Mr. Jörg-Uwe Hahn,Mr. Lothar Klemm,Mr. Stefan H.Lauer, Mr. State Secretary MichaelOdenwald, Mr. Weimar Karlheinz Board: CityTreasurerSupervisory Mr. Uwe Becker, Dahnke, Lord Ms.Kathrin Mayor Mr. Peter Feldmann, DrMargarete Haase, AGM, the During following the representatives shareholders of the were alsoelected for timeor first the reelected theto Schmidt, Mr. Werner SchmidtandMr. Stejskal. Edgar Mr. Mr. DrRoland Krieg, HakanCicek, Mehmet Özdemir, Mr. Prangenberg, Arno Mr. Gerold Schaub,Mr. Hans-Jürgen Boardthe Co-Determination inaccordance specificationsof the Ms.ClaudiaAmier, with Act: Mr.Supervisory Devrim Arslan, In advance AGM, ofthe following the representatives employees ofthe were elected for timeor first the reelected theto Board the theendof endedat AGMon May 31,2013. The termtheSupervisory ofofficeallmembers particulars Personnel report. management andincludedinthe report to by statement the Executive the Board regarding relationships affiliated the with companies provided the theendof at conducting itsown review, Board assessmentby agreedthe with auditor the andraised noobjections Supervisory the Boardrelationships affiliated with After to companies andprovide was additionalinformation. available theSupervisory to regarding Board the on March report 21,2014onthe Supervisory the discussions with inthe The auditor participated 2. 1. conclusionsreached,“Based onourauditandthe wethat confirm The auditor reviewed relationships affiliated onthe with the companies andissued following report the opinion: affiliated amMainandtheir companies.”of Frankfurt year, measures were taken neither noromitted request interests atthe oforinthe State ofthe City ofHesseandthe ducted, AG Fraport received and adequate fair compensation reporting fortransaction. the legal During each and every Executive“The Board known circumstances declares underthe that transactions tolegal were timethe usatthe con- the considerationthe paid by company the for transactions legal referred was the not to unreasonably report inthe high.” are correct, disclosures report the madeinthe To Board ourShareholders/ReportoftheSupervisory

15

Group Management Report To our Shareholders 16 Fraport Annual Report 2013 To our Shareholders / Statement on Corporate Governance and Corporate Governance Report

Statement on Corporate Governance and Corporate Governance Report

In the following statement on corporate governance, pursuant to Section 289a of the German Commercial Code (HGB) and corporate governance report pursuant to Section 3.10 of the German Corporate Governance Code (GCGC), the Executive Board – simultaneously for the Supervisory Board and in summary (see also Section 3.10 of the GCGC) – reports on the company’s management and the corporate governance of Fraport.

The term “corporate governance” at Fraport means responsible corporate management and control, the objective of which is sustainable value creation. Good corporate governance has highest priority at Fraport. In this context, efficient collaboration between the Executive Board and the Supervisory Board is as important as protecting shareholders’ interests and maintaining open and transparent corporate communications. Fraport follows the national and international developments in this area and regularly modifies its own corporate code to the new standards of the GCGC.

In accordance with Section 317 (2) sentence 3 of the HGB, the following disclosures under Section 289a of the HGB were not included in the annual audit by the auditor.

Statement of compliance pursuant to Section 161 of the German Stock Corporation Act (AktG)

On December 17, 2013, the Executive Board and the Supervisory Board of Fraport AG issued the following statement of compliance for the year 2013 in accordance with Section 161 of the AktG:

“The last Compliance Statement was issued on December 14, 2012. Since then, Fraport AG has complied with and will con- tinue to comply with the recommendations made by the Government Commission on the German Corporate Governance Code in the code version dated May 15, 2012, and the amended version of May 13, 2013, with the following exception related to previous contractual agreements:

The May 13, 2013, amended version of the German Corporate Governance Code (GCGC) included a new recommendation that the amount of compensation paid to members of the Executive Board should be capped, both overall and for individual compensation components (Section 4.2.3 paragraph 2 sentence 6 of the GCGC).

The service contracts for the incumbent Executive Board members already provided for compensation caps, which however did not fully meet the requirements of the new GCGC recommendation. On December 17, 2013, amendment agreements including compensation caps complying fully with the GCGC (Section 4.2.3 paragraph 2 sentence 6) were concluded with the incumbent members of Fraport AG’s Executive Board.”

The statement of compliance was promptly made permanently available to the shareholders on the company’s website at www.fraport.com in the section The Fraport Group.

The new recommendation with respect to the content and future format of the remuneration report (Section 4.2.5 (3) of the GCGC) relates to fiscal years beginning after December 31, 2013. Accordingly, Fraport will comply with the new recom- mendation for the first time in fiscal year 2014.

GCGC recommendations

Fraport AG also voluntarily complies with the recommendations of the GCGC, solely with the following exceptions:

Transmission of the Annual General Meeting via modern communication media (Section 2.3.3 of the GCGC). Fraport AnnualReport2013 rights ofshareholders.rights responsibleas the corporatethe material governance itclarifies to company the uphold.Furthermore, that hasundertaken Corporate Governance forandcontrol company principles management ofthe the fundamental the aswell Codedescribes Board AG ofFraport hasadopted itsown corporateThe Supervisory governance for principles company. the TheFraport Own corporate governance code provisions, AGBeyond Fraport following statutory utilizesthe the corporate governance practices: Notes oncorporategovernancepractices Board. shareholder representatives Supervisory onthe Dahnke, DrMargarete Kathrin With HaaseandProf Dr-Ing Windt,there are already Katja today three atleast independent board.GCGC shouldbemembersofthe three atleast independent shareholderDecember 14,2012that representatives meaningofSection5.4.2the the within new basedonthe provision BoardFurthermore, decidedinitsmeeting inSection5.4.1 on Supervisory GCGC,the ofthe Board candidates appropriately into account. ence ofSupervisory Board willcontinueto- take international the experi proposing candidates, nominationcommittee the Supervisory andthe Board whohave When international experience. In addition,there isanadequate Supervisory numberofmembersonthe Board isnow 20 Supervisory employeethe representative ClaudiaAmier, whowas alsonewly elected by employees ratio in2013,the ofwomen onthe Board as a new DahnkeWindt were Kathrin female member. and confirmed, was elected the Supervisory to Together with Board elections in 2013, however,in 2013. At Supervisory the mandates the Katja of Dr MargareteDr-Ing Prof Haase and fell intially from fivethe lordformer mayorthreeto in2012. Furthermore, Dr Petra Roth resigned from theBoard Supervisory AGof Fraport numberoffemale the 20members,with members currently comprises atfour. Thenumberoffemale members The ratio offemale employees to total the numberofemployees AG atFraport entity)is19.3 (single overallratio the within workforce.” Board aimsto that achieve ratio comingyears agender inthe gender reflectsthe that This alsoappliesto Supervisory the employmentthe of women according to qualification and skill at all levels and areas of targetedresponsibility in a manner. AG“Fraport cooperation iscommitted across Itwillcontinueto togenders. promote forward-looking, equal opportunity already infiscal year 2010: BoardPursuant toset Section5.4.1following the objective unchanged for itscomposition Supervisory GCGC,the ofthe Board Objectives forthecompositionofSupervisory professionals ofmany andistherefore potential expectations the inlinewith Executive Board members. an initial terminto of five a long-term Furthermore, arrangement. years represents the common practiceexperienced among All Executive Board memberswere initially appointed for aterm offive the company’syears, indicating willingness to enter First-time Executive appointmentofmembersthe Board (Section5.1.2 GCGC). (2)ofthe ExecutiveBoard ofthe Chairman andthe Board 2013AnnualGeneral beginningofthe Meeting atthe Internet. onthe for reasonsPrimarily security andpersonalprivacy, Supervisory ofthe Chairman speechesofthe publishedonly the Fraport % andhastherefore reached target the level. To ourShareholders/StatementonCorporateGovernanceandReport %. The Supervisory Board %. TheSupervisory 17

Group Management Report To our Shareholders 18 Fraport Annual Report 2013 To our Shareholders / Statement on Corporate Governance and Corporate Governance Report

The Fraport Corporate Governance Code is closely modeled after the GCGC and is regularly monitored and adapted where necessary in light of new legal regulations as well as revised national and international standards (last amended on December 17, 2013). It can be downloaded from the company website www.fraport.com in the section The Fraport Group.

Values-based compliance At Fraport the issues of compliance and values management are brought together in a values-based compliance manage- ment system. The values management system helps to prevent and monitor corruption and has been an integral component of employees’ and executives’ employment contracts at Fraport since 2005. In past years it has been phased in at national and international Group locations in which an interest of at least 50 % is held. An efficient information and reporting system is an important tool for preventing violations. Consequently, Fraport AG introduced an electronic whistleblower system (BKMS®-System) in 2009, which is also being rolled out in the Group companies on an ongoing basis. In addition, Fraport has had an ombudsperson who confidentially receives and legally examines tips on serious legal violations since December 1, 2011. The central task of the ombudsperson (an external lawyer) is to confidentially receive tips on corporate crimes and inadmis- sible business practices and infringements that are detrimental to the company.

In February 2013, the Executive Board expanded this well-implemented values management system with the adoption of two codes of conduct, one for employees and one for suppliers. These codes of conduct enable Fraport to anchor the company ever more firmly in corporate governance in terms of its long-standing commitment to comply with internationally accredited standards such as the principles of the UN Global Compact, OECD Guidelines and ILO Core Labor Standards. The Fraport Policy forms the umbrella for these commitments and describes the values-related basis of the Fraport Group’s corporate action.

Structure and functioning of the management and control bodies

For Fraport AG, a responsible, transparent corporate governance and control structure is the central foundation for creating value and trust. In accordance with the provisions of law, Fraport AG is subject to a “dual governance system”, which is achieved through strict separation of the personnel in the management and control bodies (two-tier board). While the Executive Board manages the company, the Supervisory Board supervises the Executive Board. The members of the Executive Board and the Supervisory Board work closely together in the interest of the company.

The structure of the management and control bodies at Fraport AG is as follows:

Executive Board The Executive Board of Fraport AG has comprised five members since January 1, 2013: the Chairman, Dr Stefan Schulte, Anke Giesen, Michael Müller, Peter Schmitz and Dr Matthias Zieschang. As management body, it conducts the business of the company. Within the framework of the stock corporation law, the Executive Board is bound by the company’s interests and corporate socio-political principles. Beyond this, the rules of procedure, which the Executive Board established for itself and presented to the Supervisory Board for approval, form the basis of its work. The schedule of responsibilities for the Executive Board, which governs the allocation of responsibilities, is also attached to the rules of procedure as an annex. Fraport AnnualReport2013 Prof Dr-IngKatjaWindt Michael Odenwald Lothar Klemm Jörg-Uwe Hahn Dr MargareteHaase Karl UlrichGarnadt Peter Feldmann Kathrin Dahnke Uwe Becker Karlheinz Weimar (Chairman) Representatives oftheshareholders Composition of Board the Supervisory Board as was comprised follows: the Supervisory adoptionstatements, At annualfinancial timeofthe ofthe the A detailed Group scheduleofitsremuneration report. inthe management remuneration isincludedinthe report Board reviews fiscal past itsactivitiesinthe Board, Supervisory the yearonanannualbasis. Supervisory regular respect basiswith to botheffectiveness their their appropriateness and the inview of ofnew Inits Report challenges. Board meets four timesayear (2013:seven Supervisory the times)andmonitorsAs arule, efficiencyofitsactivitiesona the Board. of committees Supervisory ofthe tives, isentitledto asecondvote. Beyond ofprocedure rules the regulate, that, inparticular, appointmentandpowers the law. Board, be from who must shareholder among the event representaIn the - of a tie vote, Supervisory of the chairman the person or through submission of written votes. Resolutions are adopted with a simple mandated majority unless otherwise by basisofaproper voting if–onthe inthe noticewhich ithasaquorum ofmeeting in halfofitsmembersparticipate –atleast Board Co-Determination hascreated German of the rules ofprocedure, Act for (MitbestG) fiveunder years. TheSupervisory by AGM the ten andthe representatives employees ofthe are elected by employees the inaccordance provisions the with representatives ofshareholders andemployees 20members.Theten andcomprises shareholder representatives are elected Executive activitiesofthe the Board AG ofFraport Board. Itiscomposed supervises ofanequal numberof The Supervisory Board Supervisory vote, vote the isdeciding. chairman ofthe Resolutions Executive are membersofthe adopted by Board. participating caseofatie ofallthe Inthe asimple majority The Executive Board usually meets meeting. inthe weekly halfofitsmembersparticipate andconstitutes ifatleast aquorum remuneration isprovided Group report. inthe management remuneration inthe report Remuneration Executive ofthe Board fixedcomponents. comprises the Adetailed scheduleof andperformance-related appointment of Executivethe Board membersis geared toward long-term fivethe andis – asalready – as arule stated years. of € Board for several for assumption approval the prior abovethe ofobligations matters, particularly Supervisory ofthe avalue all relevant matters ofbusinessdevelopment, corporate Executive Inaddition,the strategy andpossible risks. Board have must Board inaregular, Executive basis,the On this timely andcomprehensive to Supervisory the Board mannerconcerning reports 5 million,to extend suchisnot the provided Board. of for Thelength inabusinessplanapproved by Supervisory the To ourShareholders/StatementonCorporateGovernanceandReport

Edgar Stejskal Werner Schmidt Hans-Jürgen Schmidt Arno Prangenberg Mehmet Özdemir Dr RolandKrieg Hakan Cicek Devrim Arslan Claudia Amier Gerold Schaub(ViceChairman) Representatives oftheemployees Table 8

19

Group Management Report To our Shareholders 20 Fraport Annual Report 2013 To our Shareholders / Statement on Corporate Governance and Corporate Governance Report

Committees of the Supervisory Board On the basis of statutory provisions and the provisions of its rules of procedure, the Supervisory Board has formed the following committees:

Committees of the Supervisory Board

Committee Functions Normal Meetings Normal Members number of 2013 number of meetings members

Finance and > Preparation of Supervisory Board resolutions in the area of 4 7 8 Dr Margarete Haase (Chair) audit com- finance and audit-related resolutions Arno Prangenberg mittee > Monitoring of the accounting process, the effectiveness of the (Vice Chairman) internal control system, the risk management system, the in- Uwe Becker ternal audit system, the audit of the accounts – particularly the Kathrin Dahnke independence of the external auditor and the auxiliary services Lothar Klemm rendered by the external auditor – and the compliance Dr Roland Krieg > Statement of opinion on the business and development plan, Hans-Jürgen Schmidt with the exception of the capital expenditure plan, the annual Edgar Stejskal and consolidated financial statements, the management report and the Group management report, the audit report of the external auditor and other auditors, the proposal of the audit report for the Supervisory Board, the approval of the Executive Board’s actions and the awarding of the audit mandate to the auditor, the fees agreement and the determination of the focus of the audit

Investment > Preparation of resolutions relating to capital expenditure, 4 6 8 Jörg-Uwe Hahn (Chair) and capital resolutions or decisions concerning the founding, acquisition Gerold Schaub expenditure and sale of Group companies and ongoing monitoring of the (Vice Chairman) committee economic development of existing Group companies Claudia Amier > Final decision to the extent that the obligation or entitlement of Peter Feldmann Fraport AG arises from an investment-related action is between Lothar Klemm € 5,000,000.01 and € 10,000,000 Werner Schmidt > Statement of opinion on the capital expenditure plan and on Edgar Stejskal capital expenditure reporting Prof Dr-Ing Katja Windt

Human resour- > Preparation of resolutions in the area of human resources 4 4 8 Claudia Amier (Chair) ces committee > Statement of opinion, in particular, on the development of the Jörg-Uwe Hahn number of workforce, fundamental issues relating to collective (Vice Chairman) bargaining law, payment systems, employee investment plan, Devrim Arslan matters concerning company retirement plan Uwe Becker Hakan Cicek Mehmet Özdemir Michael Odenwald Prof Dr-Ing Katja Windt

Executive > Preparations for the appointment of members of the Executive As needed 4 8 Chairman of the committee Board and the conditions of employment contracts, including Supervisory Board remuneration Karlheinz Weimar (ex officio) > Final decision concerning outside activities of members of the Vice Chairman of the Executive Board which require the approval of the Supervisory Supervisory Board Board Gerold Schaub (ex officio) Claudia Amier Peter Feldmann Dr Margarete Haase Jörg-Uwe Hahn Werner Schmidt Edgar Stejskal

Committee > Preparation of a recommendation for the appointment or As needed 0 4 Chairman of the in accordance dismissal of members of the Executive Board, if the entire Supervisory Board with Section Supervisory Board does not conclude such decision Karlheinz Weimar (ex officio) 27 MitbestG Vice Chairman of the Supervisory Board Gerold Schaub (ex officio) Devrim Arslan Lothar Klemm

Nomination > Recommendation of suitable candidates to the Supervisory As needed 1 3 Karlheinz Weimar committee Board for its recommendations to the AGM Uwe Becker Dr Margarete Haase

Table 9 Fraport AnnualReport2013 of shares issuedby Fraport. BoardThe total are 1 less than shareholdings Executiveof all members of the Board and Supervisory Shareholdings ofthebodies delay.without exceeds sumof€ the undertaken acquisition ordisposalofshares AG ofFraport orany related financialinstruments thereto, the if the transactionsvalue of Pursuant to and persons closely WpHG, Section management 15a relatedof the thereto are by obliged law to disclose the Acquisition ordisposalofsharesthecompany Group report. ofthe management ispart GCGC,this and Section5.4.6(3)ofthe Board canbefound inaseparate Section4.2.5 Incompliance with Executive remuneration report. Board Supervisory andthe The disclosures essentialfeatures onthe remuneration ofthe system aswell disclosures remuneration asthe onthe ofthe Board Remuneration oftheExecutiveBoardandSupervisory to exercise to right vote. their parties to Theshareholders company canexercise the to right andother vote their statutes, tasks. third inpersonorcanauthorize Board and approval Executive actions of the of the Supervisory Board,auditor,the external selection of the the amendments assignedto itby law, tasks the appropriation ofprofits, suchasthe electionandapprovalthe membersof the actionsof of its website. TheAGM AG ofFraport isheldeachyearthe fiscal of sixmonths first inthe yearandmakes decisionsconcerning and timely information about current business developments and other company through interim reports publications on company’sthe year, the During forecasts report. management through the shareholders the are provided comprehensive with prior themeeting, sufficienttime there. to With theshareholders are informed ofbusiness developments thepast in yearand The shareholders AG ofFraport exercise company inthe rights their AGM atthe andexercise to right speakandto their vote AGM and Shareholders 5,000 within onecalendaryear.5,000 within Thenotificationsthis in respect are disclosed by Fraport AG To ourShareholders/StatementonCorporateGovernanceandReport % of the total% of the number 21

Group Management Report To our Shareholders 22 Fraport Annual Report 2013 Group Management Report Retail Estate Real & Fraport AnnualReport2013 by Fraportonthesespaces.In2013thisrosefrom3.32Eurosto 3.60 Euros. per passenger” is therefore notthe average amountspent by apassengerat Frankfurt, but thelease revenue earned develops andmarketsthespacesoptimizesofferofconceptsbrands.Thekeyfigure“netretailrevenue facilities, including 22 duty free and travel value shops. Fraport does food not service operate its own shops,but shopping andrestareasisunthinkable.BothFrankfurtterminalsarecurrentlyhometoabout300businesses It does not matter whether we are talking about a coffee bar or a high-end boutique, these days an airport without About 300 businesses... Group ManagementReport 23

Consolidated Financial Statements Group Management Report 22 Fraport Annual Report 2013 Group Management Report

...with first-class logistics

It is not only passengers who have to be subjected to a security control before their departure, this also applies to goods sold in the security area. As a result, for example the around 40,000 items on sale in the duty free and travel value shops are already checked at the main warehouse of the operator “Gebr. Heinemann” in Hamburg. Once they have been checked, these items are transported along the logistics chain to a temporary storage in Frankfurt and delivered from there underground to the shops at the airport. Thus, more than 100 roll containers are filled and emptied every day. Up to 200 roll containers are required on busy days. Fraport AnnualReport2013 Group ManagementReport 23

Consolidated Financial Statements Group Management Report 24 Fraport Annual Report 2013 Group Management Report / Overview of Business Development

Group Management Report for the Fiscal Year 2013

Information about reporting statement, as well as the consolidated statement of financial position The presentation of the Group management report has changed in for 2012, were adjusted based on the retroactive application of IAS 19. comparison with the previous year due to the first-time application of The impact of the first-time application of IAS 19 with regard to partial German Accounting Standard 20 (GAS 20). The application of GAS 20 retirement and pension accounting is shown in the Group notes to does not have any impact on the presentation of the asset, financial this Annual Report (see Group note 4). and earnings position of the Fraport Group. Detailed information about the calculation of key financial figures of the Since the beginning of 2013, Fraport has also applied the revised consolidated financial statements as well as a description of specialist version of IAS 19 “Employee Benefits”. The consolidated income terms, can be found in the glossary.

Overview of Business Development

The following graphics and notes provide an overview of the situation can be found in the further chapters of the Group management report of the Fraport Group in the past fiscal year, as well as a comparison with and the Group notes. the previous years. More detailed information on business development,

Passenger development at Group airports in which an interest of at least 50 % is held >> Passenger record in Frankfurt million >> Strong relative and absolute growth in Antalya 0 10 20 30 40 50 60 >> Airport in Lima with double-digit growth rate again 58.0 >> Solid passenger development in Burgas and Varna 57.5 Frankfurt 56.4 53.0

26.7 25.0 Antalya 25.0 22.1

14.9 13.3 Lima 11.8 10.3

2.5 2.4 Burgas 2.3 1.9

1.3 1.2 Varna 1.2 1.2

2013 2012 2011 2010 Graphic 1 Group revenue Frankfurt passengers Dividend pershare Group result Group EBITDA > > > > 1) 2013 for forecasts major of comparison Target/actual Fraport AnnualReport2013 € million in % Gearing ratio finanical debt Net liquidity Group cash flow Free cash flow Operating position financial of statement consolidated the and flows cash of statement consolidated the of figures key of Development Group result Group EBITDA Group revenue € million and Group result Development of Group revenue, Group EBITDA RecommendationtotheAnnualGeneralMeeting (AGM).

> > > > 2013 2013 Unchanged dividendrecommendation toUnchanged AGM the Group revenue, EBITDA forecast andresult the 2013inlinewith growthSlight passenger dueto summerseasonandyear-end good 2013 Major forecasts for 2013realized 2012 2012 – 500 0 2011 2011 0 % 0 500 500 2010 2010 1,000 1,000 50 % 1,500 1,500 2,000

Increase upto5 At approximatelythepreviousyear’s level Forecast for2013 Stable dividendrecommendation Decrease Between €870millionand€890 2,000 2,500 100 % 2,500 3,000 % Graphic 3 Graphic 2 2,024.4 2,647.0 2,934.5 2,975.4 2,384.0 1,606.9 1,663.1 1,486.3 2,194.6 2,371.2 2,442.0 2,561.4 – 291.1 – 350.1 – 162.4 104.9 101.3 567.5 618.8 553.0 574.8 271.5 250.8 251.5 235.7 710.6 802.3 848.7 880.2 77.8 97.5 73.1 > > > > > > > > > > > > > > > > Gearing ratioGearing slightly improved to 101.3 innetSlight rise financialdebt dividend distribution Lower Group liquidity due to loanrepayment and Free cashflow positiveexpenditure due to reduced capital Operating cashflow at€574.8million year infinancialasset management Decline inGroup result, mainly dueto previous highincomeinthe Group increased EBITDAdueto andvolume price effects further ment inGermany andabroad Increase inGroup revenue resulting from positive businessdevelop- Overview ofBusinessDevelopment Group ManagementReport/Overview

58.0 million(+0.9 Actual 2013 €2,561.4 million(+4.9 Unchanged dividendrecommendationof€1.25 €235.7 million(–6.3 €880.2 million(+3.7 %) %) %) %) % 1) Table 10 25

Consolidated Financial Statements Group Management Report 26 Fraport Annual Report 2013 Group Management Report / Situation of the Group

Situation of the Group companies consolidated excluding associates was at 52; including associates this figure was at 58 (previous year: 51 and 57 companies). For a detailed overview of the shareholdings within the Group, please Operating Activities see the Group notes (see Group note 55).

A leading Group Key features of the management and control structure Fraport Group (hereinafter also referred to as: Fraport) is among the As a stock corporation in accordance with German law, Fraport is sub- leading global airport operators with its international portfolio of ject to strict segregation of the decision-making powers exercised by airport investments. The range of services of the Group comprises all the Executive Board, the Supervisory Board and the AGM as manage- services of airside and terminal operation. The further development ment and control bodies. of airports into integrated mobility, event and real estate locations additionally represents a broad and stable revenue and earnings basis As a management body, the Fraport Executive Board bears the stra- for the Group. tegic and operational responsibility for the Group. Compared with the previous year, the Executive Board was expanded on January 1, 2013 by the The Group’s main site and key driver of revenue and earnings is Frankfurt addition of Anke Giesen as a fifth member. The Executive Board was in Airport, one of the largest passenger and cargo airports in the world. the reporting period made up of the five members Dr Stefan Schulte In contrast to time-limited concession models, the Fraport Group (Chairman), Anke Giesen (Executive Director Ground Handling), parent company, Fraport AG Frankfurt Airport Services Worldwide Michael Müller (Executive Director Labor Relations), Peter Schmitz (Fraport AG) wholly owns and operates Frankfurt Airport with no (Executive Director Operations) and Dr Matthias Zieschang (Executive time limits. With just under 11,000 employees, Fraport AG, which Director Controlling and Finance). In its meeting of September 2, 2013, was founded in 1924 and has been a listed company since 2001, is also the Supervisory Board resolved to extend the contract of the Chairman the largest single entity in the Fraport Group, which has over 20,000 of the Executive Board, Dr Stefan Schulte, which runs until the end employees. It directly or indirectly holds the shares in the Group of August 2014, for an additional five years, until August 31, 2019. companies (companies pursuant to Section 313 (2) of the German Commercial Code (HGB)). As a control body, the Fraport Supervisory Board supervises and advises the Executive Board in its decisions and is therefore directly In addition to Frankfurt Airport, Fraport is involved in twelve other involved in all company decisions that are of fundamental importance. airports on four continents through majority or minority holdings At the time of the adoption of the annual financial statements, the and management contracts. The holdings with the greatest impact Supervisory Board was comprised as follows: on earnings, due to each having equity attributable to Fraport of at least 50 %, include the fully consolidated Group companies Lima (con- cession agreement until 2031 with renewal option of ten years) and Composition of the Supervisory Board Twin Star (concession agreement for the operation of the airports in Representatives of the shareholders Representatives of the employees

Varna and Burgas until 2041), as well as the proportionately consoli- dated Group company Antalya (concession agreement until 2024). Karlheinz Weimar (Chairman) Gerold Schaub (Vice Chairman)

Uwe Becker Claudia Amier

Kathrin Dahnke Devrim Arslan

Structure Peter Feldmann Hakan Cicek

Karl Ulrich Garnadt Dr Roland Krieg Changes compared with the previous year Dr Margarete Haase Mehmet Özdemir Compared with the previous year, no fundamental changes were Jörg-Uwe Hahn Arno Prangenberg made to the legal and organizational Group structure in the 2013 fiscal Lothar Klemm Hans-Jürgen Schmidt year. There were no material acquisitions or disposals of businesses, Michael Odenwald Werner Schmidt or significant increases or decreases in shareholdings. The number of Prof Dr-Ing Katja Windt Edgar Stejskal Table 11 1) Segment structure in particular, “GlobalInvestments the central unit, andManagement” Infrastructure Management”, whichare alsoactive site, Frankfurt atthe Management”, “Information andTelecommunications” and“Corporate units“Facility segmentincludesinadditionto service the Services strategic & Activities businessunit.TheExternal “Ground Services” site. Frankfurt TheGroundthe ofthe Handlingsegmentiscomprised at andmarketing rental andthe management facility parking ofreal estate “Retail andProperties”, retailing handlesthe activities, whichprimarily strategic segmentmainly the comprises businessunitReal Estate & Retail the and “Airport Airport, atFrankfurt Management” Security “Airside andTerminal Corporate Management, Safety andSecurity” AviationWhile the segmentincorporates strategic the businessunits involved business processes. ineachofthese & Services”. Group Thesegmentsalsoencompass the companies “Retail &Real Estate”, “Ground Handling”and“External Activities andcentral units,into four segments:“Aviation”,business, service Executive Board company’s hasdividedthe strategic units,comprising operating andmanagingthe business,the ofreporting purpose For the segments four into Group the of Division and Corporate Governance Report”. and canbefound chapter inthe “Statement onCorporate Governance Governance”. annualauditby ofthe auditor the Thisdoesnot form part ment andcontrol bodiesispresented “Statement inthe onCorporate - andoperationA detailed structure manage description ofthe classes ofshares. ownerbeen issuedentitlesthe to onevote. There are nodiffering AGM at the as owners AG, ofFraport exercise voting their company inthe rights As anadditionalcontrol andco-determination body, shareholders, the Fraport AnnualReport2013 IncludingassignedGroupcompanies. Business units Segments 1) . Each of the approximately. Eachofthe 92millionshares have that Aviation Airport SecurityManagement and Security Management, CorporateSafety Airside andTerminal Retail &RealEstate Retail andProperties

and development company. the ofcustomer within satisfaction processes, aimsto Fraport achieve anchoring efficientandsustainable Communications”. Byintegrating line “Passenger inthe Experience” ment, Corporate Safety andSecurity”, central andthe unit“Corporate assigned to strategic the businessunit“Airside andTerminal- Manage unit “Passenger was Experience” dissolved functionswere andthe Compared previous the with year, asofOctober central 1,2013, the for are costs whichthe distributed across four the segments. services, and Investor Relations”, render amongotherGroup-wide things agement”, “Central Purchasing,Contracts” Construction or“Finance central units),suchas“Corporate Compliance, RiskandValues Man- elevenFurthermore, additionalcentral units(previous year: twelve site.Frankfurt companies are that not integrated into business processes the at the which ismainly responsible for businessdevelopment the ofGroup 58.0 million passengers, Frankfurt Airport again took again third position Airport Frankfurt 58.0 millionpassengers, With MunichAirport. inGermany inparticular and Istanbul-Atatürk, Dubai-International airports –the nationalairlines oftheir performance deGaulle,Amsterdam-SchipholCharles andalso–dueto strong the competitors London-Heathrow, are European the hubairports Paris- Itslargest transfer structure. basisofitspassenger onthe passengers other –onthe handfor and–primarily nationalandinternationalgers initscatchment area for boarding passen- airports onehandwith the In respect to itscompetitive site Frankfurt competes position,the on in 2013. Group site Fraport ofthe important –was most the again Airport employees, site German the –andhere exclusively almost Frankfurt under 80 just With Key sites and competitive positions Fraport Group Ground Handling Ground Services % of Group revenue and more 90 than Group ManagementReport/Situationofthe External Activities&Services Management Corporate Infrastructure Facility Management Telecommunications Information and and Management Global Investments % of the % of the Graphic 4 27

Consolidated Financial Statements Group Management Report 28 Fraport Annual Report 2013 Group Management Report / Situation of the Group

Revenue by region The expansion program launched by the Executive Board in the 2009 fiscal year with start of construction work on Runway Northwest and the in % FRA North modernization program, that was being progressed almost 4 AVIATION in parallel, continue to help maintain and strengthen the international 3 1 Germany 79.6 1 competitive position of the site in the future. The programs, which 2 2 Asia 7.3 3 Rest of Europe 4.3 mainly include Runway Northwest, Pier A-Plus, the A380 moderniza- 4 Rest of World 8.8 tion measures, the CD-Pier and the planned Terminal 3, secure airport capacities and quality in the long-term in order to give the Frankfurt site a successful, lasting competitive edge. The development of CargoCity North and South, which has also started, will significantly strengthen the competitive position in the cargo segment (air freight and air mail) over the long-term. Graphic 5

The competitive situation at the very tourist-centered airports in Antalya, Varna and Burgas differs from that of the Frankfurt site. The Employees by region key driver for the development at these sites is the attractiveness of the tourist regions with regard to quality and price level, among other in % things. With 26.7 million passengers, the airport in Antalya was the 4 AVIATION 2 3 second largest passenger airport in Turkey in the past fiscal year behind 1 Germany 90.8 1 Atatürk Airport in Istanbul, and the largest tourist airport in the Mediter- 2 Asia 1.3 3 Rest of Europe 5.0 ranean region, ahead of Palma de Mallorca. The airports in Burgas and 4 Rest of World 2.9 Varna, with 2.5 million and 1.3 million passengers respectively, were the second and third largest passenger airports in and the largest airports in the country in the Black Sea region. With the opening of the terminal in Varna in August 2013 and in Burgas in December 2013, all three tourist sites have installed sufficient capacity since the end of the past fiscal year to be able to serve the growth that is expected in Graphic 6 these regions in the medium-term.

The competitive situation in Lima Airport, Peru, also differs from the in Europe in the past fiscal year after London-Heathrow (72.4 million Frankfurt site. The aviation market in Lima continues to benefit from passengers) and Paris-Charles de Gaulle (62.1 million passengers); the economic prosperity of the country, the continually increasing their lead remained more or less stable in comparison with the previ- tourist demand and the good geographical location in South America, ous year. With 52.6 million passengers, Amsterdam-Schiphol Airport which is particularly attractive for transfer traffic between South and was in fourth place after Frankfurt. In 2013, the continued dynamic North America. Following the high rates of growth in the last ten years development of led to a strong growth rate at Atatürk (compound annual passenger growth of 12.6 %), Lima Airport has now Airport in Istanbul (+13.6 % to 51.1 million passengers) and thus to established itself as a continental hub airport. As the airport capacity gains in market share versus other European competitors. With a signifi- will reach its limit in the foreseeable future due to passenger growth, cant distance behind Frankfurt Airport, continued to capital expenditure on the airport’s infrastructure (construction of a be the second-largest German passenger airport with 38.7 million new terminal and new take-off and landing runway) is required in the passengers (+0.8 %). medium-term to maintain and strengthen the competitive position.

Compared across continents, some airports in Asia in particular de- Additional information about business development in the past fiscal veloped much more dynamically and recorded gains in market share year can be found in the chapter titled “Economic Report” beginning compared with Frankfurt Airport. In the transfer segment especially, on page 44. airports in the Gulf States, primarily Dubai Airport, continued to record increases in connections between Europe and Asia in particular. This was partly at the expense of the Frankfurt site because transfer pas- sengers were diverted from Frankfurt. Rolls Royce Embraer Boeing Airbus Airports CouncilInternational(ACI) Source Forecasts for the long-term development of global air traffic 2015 Agenda following. inthe described and“utilize growthsustainability” potentials”. are These challenges “strengthen profitability”, “increase customer satisfaction”, “secure fiveexpenditure”,the areascapital 2015:“manage ofactivity Agenda TheExecutivechallenges. in Boardchallenges these hassummarized term development strategic airtraffic, faces ofglobal theGroup Fraport predicted conditionsandthe long- short-term Due to uncertain the Group. Fraport ofthe development airports ofthe willalsohavegrowth expectations apositive traffic impact onthe growthto long-term stable expect rates aviation inthe market. These leadingaviationthe manufacturers continue associations and aircraft year, site, Frankfurt impact onthe which, for hasaparticular Fraport, aviationand the was that introduced tax inGermany 2011fiscal inthe restrained European the the debtcrisis, supply behavior airlines ofthe improved unfavorable –butstill asaresult of –conditions, primarily aviationglobal market and its market trends. Despite now the slightly remains oriented toward long-term the forecasted development ofthe Group strategy 2013fiscal inthe year. Groupstrategy The Fraport Compared previous the with year, were nochanges madeto the long-term market development toward oriented remains strategy Group Strategy Fraport AnnualReport2013 profitability Strengthen Manage capitalexpenditure Utilize growthpotentials Increase customer satisfaction sustainability Secure Graphic 7

capital expenditure isrequired expenditure capital inVarna medium-term. orBurgas inthe anticipatedthe future growth, noadditionalcapacity-related sothat terminalsbusiness. Openingthese meansboth sites are prepared for otherthe hand, provide additional retail space to retail strengthen the two capacitiesand,on hand, the localpassenger terminals expand fiscal past inthe year.a new terminal atBurgas Airport the one On openedanew context, Fraport In this and terminal atVarna Airport infrastructure Group at the sites outside Frankfurt. airport panding the In harmony forecasted the with growth ex- inairtraffic, isalso Fraport from around 2021onwards demand. inlinewith around 2015onwards andfor phaseable first the to beginoperation foundationtime laid the for to begin construction on Terminal 3 from same hasatthe buildingapplication,Fraport submissionofthe the year, from 2013to oftimefrom aperiod around 2015onwards. With fiscal work terminalpast onthe in ofconstruction delayed start the weaker Dueto temporary the airtraffic airport. development, Fraport of Terminal on construction needs and the of the part southern 3 in the The focus for coming years the willcontinueto beon planning based already beencompleted asthey were needed. 2008 fiscal year,expenditure program the capital have of four key parts remodeling CD-Pierinthe of the ofPierB(alsoin2012)andthe 2012fiscal inthe the completionyear and openingofPierA-Plus the inauguration the ofRunwayWith 2011fiscal inthe Northwest year, program,modernization whichwas progressed inparallel. almost program expansion 2009fiscal of the inthe the FRANorth year and ofimplementation site start the Frankfurt with ofthe sustainability the TheExecutiveFraport. Board therefore steps took toward substantial ture inademand,safety for andcost-oriented mannerisathighpriority growth ofairtraffic- infrastruc thelong-term, over provision ofairport To itsinternational competitiveness maintain inthe andparticipate Manage capital expenditure until 2031 until 2031 until 2032 until 2032 until 2031 Period

Group ManagementReport/Situationofthe Passenger kilometers Passenger kilometers Passenger kilometers Passenger kilometers Passengers Reference

Table 12 CAGR 4.5 % 5.0 % 5.0 % 4.7 % 4.1 % 29

Consolidated Financial Statements Group Management Report 30 Fraport Annual Report 2013 Group Management Report / Situation of the Group

Fraport is also planning an increase in capacity at the Group company to improve profitability; which are not part of the short- and medium- Lima, where in the medium-term the construction of a new terminal term business outlook and are shown by way of example in the chapter and a new runway will accommodate the dynamic growth in traffic of titled “Risk and Opportunities Report” beginning on page 67. past years and the forecasted development. Increase customer satisfaction The passenger development and capacity requirement are constantly Fraport sees the ongoing improvement of customer satisfaction as a analyzed at the Antalya site. The ground service processes are con- challenge for all Group units. The Frankfurt site as well as the entire tinuously optimized and the capacity of the terminal infrastructure is Fraport Group will benefit from passengers considering Group airports adjusted to meet operating requirements as necessary. as their airports of choice. This applies to departing and arriving passengers, who for example use parking facilities, as well as transfer The key risks and opportunities associated with the expansion of airport passengers, who are using food and beverage and retail areas during infrastructures inside and outside of Frankfurt can be found in the “Risk their visit. It is essential to have satisfied customers in order to fully and Opportunities Report” beginning on page 67. The report on the realize the potentials of the business. level of capital expenditure in the past fiscal year can be found in the chapter titled “Asset and Financial Position” beginning on page 53. The results of customer surveys underscore that the quality improve- The forecasted development for the 2014 fiscal year can be found in ments made at the Frankfurt site in past years have been positively the “Business Outlook” beginning on page 84. The business outlook received by customers. To continue this trend, Fraport is continuing also contains the expected development in the medium-term. to intensively pursue the “Great to have you here!” service initiative begun in 2010. The objective is to maintain a perceived service qual- Strengthen profitability ity – determined using “Global satisfaction” – at Frankfurt Airport of The extensive capital expenditure measures directly result in a sig- at least 80 % in the long-term and thus continue the positive trend of nificant financial burden for Fraport, primarily consisting of operating previous years. In the past, Fraport included the following measures costs as well as depreciation, amortization and interest. The Executive in its approach to improve customer satisfaction: Board therefore faces already in the short-term the challenge of further improving the profitability of the company in order to increase the >> Expansion of so-called “fast lanes” at security controls for time- operating result as well as the Group result. In this context, Fraport in sensitive passengers past years has, e.g., driven the following areas forward: >> Optimization of terminal labeling for better orientation >> New information desks with boarding card scanners for individual >> Sustained traffic growth at the Frankfurt site through the inauguration route, service and flight information of Runway Northwest and Pier A-Plus >> Gradually raising airport charges at the Frankfurt site in the Aviation In the future, the focus for Fraport at the Frankfurt site is primarily the segment to cover capital costs further optimization of the transfer process. In this context, the follow- >> Increasing retail revenue at the Frankfurt site in particular due to ing areas can be cited as examples: Pier A-Plus >> New ground handling services contract at the Frankfurt site with >> Optimized transfer route structure Deutsche until 2018 >> Improvement of (advance) information for inexperienced passen- >> Extending and modernizing terminal and retail areas at sites outside gers, for example, using better communication via social media Frankfurt >> Expansion of self-services for experienced passengers, for example, >> Optimizing internal processes and structures, including the restructur- by increasing the use of easyPass and baggage drop-off systems ing of Corporate Infrastructure Management and merging compa- or navigation via app rable functions in Facility Management >> Development of culture-specific services, such as personal shopper

Key performance indicators relating to the “strengthen profitability” Outside of Frankfurt, the Lima site in particular demonstrates its customer area of activity can be found in the chapter titled “Control” beginning focus impressively with numerous awards (including “Skytrax Best on page 32. A description of the development of performance indicators Airport in South America” 2009 – 2013). At Antalya Airport, the focus during the past fiscal year can be found in the chapters titled “Results is also on the quality of the ground service processes and customer of Operations” and “Segments” beginning on page 48. The associated satisfaction: in 2011, the airport won the ACI Europe award for the forecasted figures for the 2014 fiscal year and a medium-term outlook best European airport in the under 25 million passengers category. can be found in the chapter titled “Business Outlook” beginning on In the future, the two terminal inaugurations will, in particular, have a page 84. In addition, the Executive Board is examining further measures positive impact on customer satisfaction at the Varna and Burgas sites. the past fiscal past the year. to achieve significantlygrowth higher in ratesthe Group in airports site marketing. to more Thanks favorable conditions,itwas possible focus the outside of Frankfurt, is also on active GroupIn the airports growth inairtraffic willbe tocreated thanks 3. Terminal infurther long-term,conditionsforemissions. Inthe participation growth global the in air traffic reduction ina simultaneous noise with low-noise TheExecutivewith in aircraft. to participate Board seeks thus growth for onnew new airlines orexisting international airlines routes an incentive program for which aims to airlines, generate passenger Executivecontext, in2013the Board adopted, amongother things, ably foreseen and low-noise possible.Inthis modern most with aircraft site Frankfurt years. inpast the growth Usingthese potentials isprefer CD-Pier, andthe A-Plus hassignificantly increased Fraport itscapacityat aviationof the market. completion the With ofRunway Pier Northwest, Fraport’s objective isto achieve growth inthe Group-wide participation potentials growth Utilize annualauditbythe auditor. the of does not form The separatepart report sustainability fraport.com. available Group underwww.sustainability-report. onthe homepage is “ConnectingSustainably”,can befound separate inthe which report program sustainability onthe tion ofmeasures report taken andastatus titled “Business Outlook” beginning on 84.page An additional descrip fiscal year andamedium-term outlookcanbe the chapterfound in associated 60; the beginning on page forecasted figures the 2014 for can be found in chapterthe titled “Non-financial Indicators” Performance development 32.Adescription ofthe page fiscal past the during year of activitycanbefound chapter inthe titled“Control” beginningon indicators relatingKey area to “secure the sustainability” performance creation, compliance/governance andattractiveness asanemployer. quality andcustomer employment satisfaction, development, value key areas ofactivity include:airtraffic safety, noise abatement, product programsustainability were both updated fiscal past inthe year. The checked and,ifnecessary, andthe amended.Themateriality matrix achieved effectiveness andthe the measures of includedare regularly program.sustainability Theextent to objectives whichthe have been developed andsystematized amateriality matrix itsobjectives ina environmentalwith has Fraport andsocialtargets. purpose, For this concept for itsfuture, where economicobjectives are to becombined asresponsibly developing sustainability understands Fraport the Secure sustainability found chapter inthe 84. titled“BusinessOutlook”beginningonpage figures the 2014fiscalfor yearandamedium-term outlookcanbe formance Indicators” associated 60;the beginningonpage forecasted fiscal past year canbe the chapterfound in titled“Non-financial Per development 32.Adescription ofthe beginning onpage the during faction” area ofactivitycanbefound chapter inthe titled“Control” indicators relatingKey to “increase the customer performance satis- Fraport AnnualReport2013 - - - In addition, the Group-wide focus is on three further growth Group-wide drivers:In addition,the focus isonthree further revenue Group atthe airports. market trends, Executive the improve Board aimsto further retail regard with inFrankfurt to gained expertise and implementing the revenue spaces long-term. existing inthe Bycontinuously modernizing new terminals created attractive retail spacewhichwillincrease retail 11 positively growth with ofmore 6 than Retail revenue alsodeveloped outsideofFrankfurt atGroup airports market trends into account. ofsales-promotingcontinued implementation measures whiletaking spacesandthe ofexisting modernization sustained the tions inPierA, controls, security astrongerconcentrationthe - ofAsianflightdestina accelerated at handlingofpassengers utilizationofPierA-Plus, the objective,this improvement ongoing focus onthe the isprimarily of net retail revenue to perpassenger € to anaverage of€ year direction in the of € retail revenue fiscal past increased inthe perpassenger inFrankfurt net the After retail growthfoundation Airport. for atFrankfurt further 2012fiscal inthe createdof retailyear the spaceinPierA-Plus, Fraport for retail business.Through inauguration the ofintotal about12,000m² beverage areas terminals inthe are essentialelementsofgrowth plans shoppingandfood ofthe andmodernization The expansion business 1: Retail driver Growth > > > > Cityare: development Airport ofFrankfurt development. inthe Group willparticipate further Examples ofthe project, decidesifandto Fraport whatextent the particular on the consideration for are realthat development. worth estate Depending recognizedFraport and identified trend sites this at an stage early are developing cities. Around world, the hubairports into airport city 3: Airport driver Growth Europe andAsia. are includeprojectsthat America, currently inSouth beingexamined business.Opportunities external the expand clear objective isto further for positiveexpectations the development portfolio, existing in the generated around onethird Group ofthe result. long-term Besidesthe previousIn the fiscal year, segment the External Activities &Services business External 2: driver Growth > > > > Ticona site Ticona CargoCity South Gateway Gardens Mönchhof site % at the Lima site. At the airports inVarna Limasite. two andBurgas,% atthe the At airports the 3.60 in 2013), the objective3.60 in2013),the remains to increase the Group ManagementReport/Situationofthe 4 (increase from an average of €3.32 in 2012 4 in the medium-term.4 inthe To achieve % at the Antalya% atthe site andsome 31

Consolidated Financial Statements Group Management Report 32 Fraport Annual Report 2013 Group Management Report / Situation of the Group

Fraport is also examining the development potential of available Results of operations key figures spaces at sites other than Frankfurt. However, specific projects with a As a fundamental component of the interim and consolidated annual fundamental impact on the course of business of the Group are not financial statement reporting, the results of operations include the currently being implemented. presentation and explanation of significant results components and key figures. While the results of operations in the context of regular As a result of the short- and medium-term realizable opportunities for reporting provide information about the past business development growth and taking account of the future development of industry- and are explained in the short- to medium-term in the business outlook, specific conditions, the Executive Board has drawn up the earnings earnings forecasts are also regularly drawn up over long-term periods forecast for the 2014 fiscal year as well as a medium-term outlook. The for internal planning purposes. The results obtained from this are forecast and medium-term outlook can be found in the chapter titled essential for the Executive Board with regard to the long-term value “Business Outlook” beginning on page 84. In addition, the Execu- management of the company. tive Board is examining the implementation of further opportunities, which are not part of the short- and medium-term business outlook The key financial performance indicators for Fraport are revenue as a and are shown in the chapter titled “Risk and Opportunities Report” key component of total revenue, EBITDA, EBIT, EBT and the Group beginning on page 67. result. Revenue reflects the Group’s operating activities. EBITDA is calculated from the total revenue less operating expenses (personnel, material and other operating expenses). EBITDA therefore reflects the Control success of the operating activities and is a key performance indicator both in terms of absolute development as well as in relation to the Changes compared with the previous year development of revenue and indirectly to traffic development. Compared with the previous year, no fundamental changes were made to Group control in the 2013 fiscal year. However, due to the first-time Group EBIT, which plays a decisive role in Group value management, application of GAS 20, the presentation has changed in a way, that presents EBITDA in the context of depreciation and amortization. Less the key financial and non-financial performance indicators which are the financial result, which is essentially comprised of interest income derived from the Group strategy are now provided in the following. and interest expenses, the EBIT results into the EBT.

Financial performance indicators The Group result is the result of the operating activities and measures For Fraport, the growth-oriented development of financial performance taken to influence EBITDA, EBIT and EBT. It is calculated from EBT less indicators is critical for the long-term success of the company. The over- taxes on income. The Group result alters the Group shareholders’ riding importance of these indicators is reflected in the Group strategy equity. as a set of criteria for the “manage capital expenditure”, “utilize growth potentials” and “strengthen profitability” areas of activity. Asset and financial position key figures The result of the strategically adopted measures and operating activities Fraport mainly uses key figures relating to the results of operations of Fraport are besides the results of operations reflected in the asset and to the asset and financial position, as well as key figures that link and financial position of the Group. For Fraport, the development of the results of operations with the asset and financial position, as key shareholders’ equity, the equity ratio, the net financial debt, the financial performance indicators. In accordance with the long-term gearing ratio, the operating cash flow and the free cash flow are oriented Group strategy, the Executive Board manages and evaluates of particular importance. the development of financial performance indicators while also tak- ing account of long-term forecasted market trends. In this context, The level of shareholders’ equity represents the basis for the current strategic measures taken – for example, the implementation of larger and future operating activities for Fraport. A solid base of shareholders’ capital expenditure projects – can also lead to a short- to medium- equity is, for example, essential for the financing of large strategic term burden on the financial performance indicators, as long as it is projects. Also connected with this was the company’s listing in the assumed that the results of operations will develop in a clearly positive 2001 fiscal year, which led to a significant increase in shareholders’ manner over the long-term and the measures do not pose significant equity of around € 900 million and formed the essential basis for the risks to the company. financing of the expansion of the Frankfurt site as well as the external business. On the 2013 balance sheet date, Fraport held shareholders’ The key financial performance indicators and their significance for equity of € 3,098.8 million, corresponding to a shareholders’ equity Fraport are described in the following. A description of the develop- ratio in relation to total assets of 30.8 % (shareholders’ equity without ment of these indicators during the past fiscal year can be found in the non-controlling interests of € 45.7 million and profit earmarked for chapters titled “Results of Operations” and “Segments” beginning on distribution of € 115.4 million). page 48. The associated forecasted figures for the 2014 fiscal year and a medium-term outlook can be found in the chapter titled “Business Outlook” beginning on page 84. Group andatsegmentlevel. cost Thevalueof capital). added isconsolidated andrecorded at as differencethe between assets× (= costs the capital EBITandFraport valueapproach “ Fraport isthe ” figure, added whichiscalculated centralment. At the figure Fraport, used to measuresteer and this Group’s development according ofvalue to principles - the manage Executive context, the position. Inthis Board the plansandmanages development results of the of operations asset and the and financial asset andfinancialposition,specifically draws parallels between the Board, inadditionto key the figures the for results ofoperations and In order toincreasing company’s the sustainably value Executive the management) (value position financial and asset the and operations of results the between Links program.expenditure capital FRANorth andthe expansion airport ofthe start time sincethe Terminal 3–positive free cashflow was achieved in2013 the first for site large last investment Frankfurt in2012–the the project before at openedPierA-Plus Fraport to shareholders asdividends.After reduce leverage the ratio), ratio orthey (gearing canbedistributed company as a financial reserve for futureexpenditure capital or to (free cashflow) be caninturn retained inorder to be available the to deducting operating investing activities.These“free” liquid funds available to Group the from operating after the activities ofaperiod free cashflowthus provides informationthefinancialfunds about assets, property, plantandequipment, andinvestment property. The outflow operatingfor investments projects, intangible other inairport freethe cashflowthe the operating is result of cashflow thecash less cash flow showsthe cashinflow andoutflow fromoperating activities, evaluationthe Group.strengththe operating financialof While ofthe cash flowthe free and cashflow indicators as the for key performance ratio, ExecutiveIn additionto the gearing the Board operating usesthe 2012 fiscal year,this figure was101.3 value of104.9 gearing ratio shouldnotexceedthe that has defined 140 program expenditure site, Executive Frankfurt capital the atthe Board company’sthe islower. expenditure capital context of the Inthe when andfalls usually expenditure increases intimesofhighcapital expenditure cycle. capital phase in the ratio The thereforegearing levelthe ratio variesgearing of the depending on Fraport’s current debt position and thus provides Group’sthe leverage ratio. In general, level ofshareholders’ equity corresponds to relevant the net financial interests. ratio therefore Thegearing measures extent to the whichthe justed by aswell planneddividenddistribution the asnon-controlling To achieve amore accurate result, shareholders’ the equity isalsoad- Group’s non-current liquidityandcurrent financialliabilities. andthe whereby net the thedifference financialdebtisdefinedas the between in relation to net the thefinancial balance debtsheet also on date, company calculates shareholders’ the balancesheet equity onthe date to company’s assessthe situation.To ratio, calculate the gearing the askey serve financialindicators the Executiveto in particular Board Besides shareholders’ equity, net the gearing ratio financialdebtand Fraport AnnualReport2013 % was recorded ratio endofthe for atthe gearing the % at the 2013balancesheet% atthe date. %. After a %. After

9.5 its WACC. 2013fiscal Inthe year,this the previouswas, asin year, at structure, regularly financing reviewsFraport and,ifneeded,adjusts economic environment, interest rate levels and/orFraport’s and risk asset model.Given capital pricing the continuously changing the calculates weightedFraport the average (WACC) ofcapital cost using value management. associatedaccount of the companies and other Group companies in ing assets Group of the companies.way, In this also takes Fraport Group companies assignedto segmentaswell this correspond- asthe is supplemented by results the from associated companies andother segment valuements, the External addedinthe Activities &Services Aviation,and inthe Retail &Real andGround Estate Handlingseg- value toFraport calculationofthe addedatGroup the levelContrary to regular depreciation andamortization. amountbecauseitisnot subject Goodwill isrecognized atcarrying amounts. andnot (atcost/2) costs atresidualmanufacturing carrying assets are generally recognized historical acquisition/ athalfoftheir tization incalculatingitsvalue-added figure, Fraport’s depreciable To avoid value creation comingsolely from depreciation andamor –Current tradecost/2 accountspayable Inventories + Trade accounts receivable in progress – Construction at operating projects +Property, atcost/2 plantandequipment+ atcost/2 assets intangible +Investments atcost/2 Goodwill +Other inairport requiredcapital for operations. assets Fraport are asfollows: comprised the defined as averagethe Group’s of orsegments’ interest bearing assets are derived from consolidated the financialpositionandare keyWhile EBITisoneofthe figuresthe of results ofoperations, Fraport and “attractiveness asanemployer” categories. mance indicators to “customer andproduct the satisfaction quality” company key control, hasassignedthe Fraport non-financialperfor perceived by and employee passengers To satisfaction. improve the quality as indicators include, for service example, These performance areas ofactivityGroup strategy. from “increase the customer satisfaction” and“secure sustainability” essential for long-termcompany the successof andresult primarily indicators”,development of“non-financialperformance whichare also In additionto itsfinancialdevelopment, alsomeasuresthe Fraport Non-financial performance indicators created value (ROFRA >WACC) ornot (ROFRA

Consolidated Financial Statements Group Management Report 34 Fraport Annual Report 2013 Group Management Report / Situation of the Group

The significant non-financial performance indicators in the sense of High connectivity, where passengers are transported with their bag- GAS 20 and their significance for Fraport are shown in the following. gage on the same flight, results in good baggage process quality. This The description of their development during the past fiscal year can is particularly important because Frankfurt has a high proportion of be found in the chapter titled “Non-financial Performance Indicators” transfer baggage with a transfer share of around 55 %. The objective beginning on page 60; the associated forecasted figures for the 2014 is to achieve a sustainable baggage connectivity of more than 98.5 %. fiscal year and a medium-term outlook can be found in the chapter titled “Business Outlook” beginning on page 84. An additional descrip- The availability of mobility equipment in terminals is particularly tion of the non-financial performance indicators that are not essential important for passengers with limited mobility. Fraport uses the equip- for understanding business development in the sense of GAS 20, as ment availability rate to track the availability of this equipment at the well as a status report on the sustainability program can be found in Frankfurt site; the rate measures the proper technical operation of the separate sustainability report “Connecting Sustainably”, which is elevators, escalators and aerobridges. Fraport aims for an availability available on the company website under www.sustainability-report. rate of far above 90 %. fraport.com. The audit of the sustainability report does not form part of the consolidated financial statement audit by the auditor. Attractiveness as an employer For Fraport, attractiveness as an employer is, like customer satisfaction Customer satisfaction and product quality and product quality, a key factor to ensure the long-term success of the For Fraport, the quality of services performed and the associated business. Fraport understands attractiveness to mean the creation of customer satisfaction are decisive competitive factors and of key good working conditions in order to gain and retain committed and significance for the long-term success of the business. The clear objec- qualified employees. tive is therefore to raise its own quality and customer satisfaction to a high level. To make it possible to measure and manage its attractiveness as an em- ployer, Fraport uses various performance indicators, such as employee Fraport uses a number of performance indicators to measure and satisfaction, as well as key figures relating to employee safety and steer quality and customer satisfaction. The most important indica- health management. tors at the Frankfurt site include the global satisfaction of the pas- sengers, the punctuality rate, the baggage connectivity and the Employee satisfaction, which is recorded annually or every two years equipment availability rate. Beyond the Frankfurt site, the focus is at a minimum by means of a questionnaire to Fraport AG employees primarily on passenger satisfaction at the Group airports, similar to and 13 other Group companies including Lima and Twin Star, is a global satisfaction. central instrument for the measurement of employee morale. Fraport is convinced that satisfied employees achieve better customer loyalty For Fraport, global satisfaction covers a number of passenger-related and improved performance. The employee satisfaction key figure is processes and the associated quality. The processes that are assessed calculated from nine aspects of satisfaction and shows potential areas include, among others, waiting times at security controls and baggage of improvement. Fraport aims to increase employee satisfaction to claim as well as terminal cleanliness. Fraport aims to achieve a target an average grade of better than 3.0 (whereby 1 = very good and 5 = of at least 80 % for global satisfaction at Frankfurt Airport. Compared inadequate). In 2013, it was at 3.02. with the 2010 fiscal year, this increase is equivalent to a rise of ten percentage points. Outside of Frankfurt, passenger satisfaction is mainly Furthermore, health and safety management is key in order to become recorded using surveys. more attractive. Fraport needs efficient and high-performing employees to withstand international competition. One measurement of employee The punctuality rate indicates how many flights took off and landed occupational health and safety which Fraport uses is the number of on time in Frankfurt, whereby a flight is regarded as being late after work accidents per year. The objective is to continuously reduce the 15 minutes in accordance with the International Air Transport Associa- total number of work accidents and the resulting days missed due to tion (IATA). A high level of punctuality is an indicator of the reliability accidents. of the respective airport and improves the ability of airlines and airport service providers to plan. The assessment of the punctuality rate may Finance Management particularly be distorted by bad weather conditions in Frankfurt or Fraport’s finance management encompasses the strategic goals of by already existing delays to incoming flights. With a comparable securing liquidity, limiting financial risks, profitability and flex- weather situation, Fraport aims for a continued high punctuality rate ibility. The highest priority is to secure liquidity. Based on the Group’s of around 80 %. solid sharholders’ equity base, it is secured through both internal financing via operating cash flow and external financing in form of debt. Baggage connectivity provides information about the percentage of departure baggage at the Frankfurt site that is loaded on time and sent With regard to debt, Fraport AG’s financial management aims to to the correct destination in relation to the total departure baggage. achieve a balanced financing base composed of bilateral loans, bonds on page 53. on page be found chapter inthe titled“Asset andFinancial Position” beginning The financingandliquidity analysis fiscalthe past the endof at year can € balancesheetIn addition,asatthe date, additionalcredit linesof a result requirements ofthese are shown following. inthe as apply to that Group obligations report the management reporting disclosure requirements. Important subject to anumberofstatutory As alisted Group company inGermany, headquartered is Fraport Legal Disclosures amountof€ the In contrast, there were current andnon-current financialliabilitiesin totalingsecurities € December 31,2013composed ofliquid fundsandfreely negotiable liquidity, context ofsecuring the Within showed Fraport liquidity at asset into the course ofactionwith accountits remaining taking term. adecisionismadeoncase-by-caseperiod, further basisonthe is downgraded to non-investment asset’s gradethe during holding credit banks’ ratings. inthe credit changes Ifthe rating the things, limitsarethese continuously monitored regard with to, amongother financial sector. Total limits are determined in various business sectors; the bonds,there in isalsoabroadtrial diversification ofcounterparties ofdiversification, purposes For the inaddition to investments inindus- ments canalsobemadeto asmallextentnon-rated inlow-risk, bonds. fiscal past year with regard the that to rating classificationso invest - diversification ofinvestments incorporate bonds extendedthe was in and commercial paperavailable. strategy Theestablished for broad the remaining terms AG short with hastimedeposits,securities Fraport framework ofcurrent outflowsexpenditure, asa result ofcapital long-term cashoutflows.the within For paymentsexpected shortly corresponds tohorizon greatest the possibleextent to expected the liquidity isinvested broadly. Themedium-andlong-term investment spreading lightofrisk andoutflowsIn the atdifferent the times, Group’s bank liabilitiesandacorporate bondissuerelating to project financing. companies inwhichaninterest 50 ofatleast of establishment athe unit of valuation (hedgeaccounting). For Group predominantlyhedges the conditionsset fulfill outunderIAS39 for borrowing, someinterest rate have hedges beenentered into; these note loans. Topromissory reduce interest rate from risk floating rate market),(capital loanfinancingfrom and publicloaninstitutions Fraport AnnualReport2013 533.2 million were available to (previous Fraport year: € 4,461.7 million(previous year: € 1,486.3 million(previous year: € % isheld,there are mainly 4,597.6 million). 1,663.1 million). 452.9 million).

new authorized capital of new€ capital authorized AGM ofMay capital, 31,2013,by authorized existing cancelingthe employee scopeofthe shares the within investment plan.At the In 2013,atotal of€ shareholders. ofthe subscription rights sible to exclude statutory the Board. Itwas pos- May approval the 26,2014with Supervisory ofthe stock by capital the upto € authorized by resolution of AGMthe held on May 27, 2009 to increase Pursuant to Sections202et Executive AktG,the seqq.ofthe Board was represented ofthe majority stock. capital quarter resolution AGM AktG),the ofthe of the hasto bepassedby athree- Section193(1) sentenceAktG; orwhencreating capital, 1 contingent company inthe as stated Section179(2)sentence statutes, 2ofthe company ofthe purpose (e.g., when changing the majority capital resolution.of the If,by way ofexception, law the requires ahigher votes ofthe majority stock represented capital andthe cast time atthe to company Section18(1)ofthe bepassedby must statutes, asimple company require statutes aresolution AGM, ofthe which,according respect onlystatutes with to wording. the amendmentsto Other the Board is entitled topany amend companythe statutes, Supervisory the sentence Sectioncom- AktG 11 in(3) 2 conjunctionof of with the the Corporation Act (AktG) (Sections 84 and 85). Pursuant to Section 179 (1) relevant the out incompliance with provisions Stock German ofthe The appointmentanddismissalofExecutive Board membersiscarried respective shareholders’ own disclosures. may differ fromor the figures from given thetime of at reporting total numberofshares balancesheet asatthe date andtherefore 3.06 Asset LLC Management 3.16Lazard as follows (asatDecember shareholders, otherthe voting AG inFraport rights were attributable cial report in accordance WpHGordisclosures the by with individual Holding GmbHsubsidiary. According to offi- last the Main am Frankfurt am Main areFrankfurt held indirectly Stadtwerke via the of City the Holding lows: State of Hesse31.37 December 31, 2013. At time, that they at were as attributed as fol Trading Securities German of the Act (WpHG),amounted to 51.40 by both shareholders, calculated inaccordance Section22(2) with dated total 18/23,2001,the voting April AG inFraport rights held State ofHesseandStadtwerke amMainHoldingGmbH Frankfurt agreement concludedbetween consortium basisofthe On the balance sheet. There are nodiffering shares. at € shares as at December 31, 2013 was recognized less treasury capital are offset fromstock capital the on balance sheet. The subscribed sharesshares. (77,365shares) Thecompany which holdstreasury ber stockAG ofFraport The capital is€ Takeover-related disclosures 922,122,890 (92,212,289 no-par-value shares) commercial inthe 31,

%. The relative ownership interests were adjusted to current the

2013). Itisdivided into 92,289,654no-par-value bearer GmbH 20.03 552,980 of authorized capital was capital usedfor 552,980 ofauthorized issuing %. Thevoting AG inFraport rights owned by Group ManagementReport/Situationofthe 5.5 millionononeormore occasions until 31, 3.5 million was approved, which can be % andStadtwerke amMain Frankfurt 2013): Deutsche Lufthansa AG 8.46 2013): DeutscheLufthansa % andRAREInfrastructure Limited 922,896,540 (asatDecem- %, %, 35 % -

Consolidated Financial Statements Group Management Report 36 Fraport Annual Report 2013 Group Management Report / Situation of the Group

used for issuing shares to employees of Fraport AG (see also Group Statement on Corporate Governance note 31). The Executive Board is now entitled, with the approval of and Corporate Governance Report the Supervisory Board, to increase the capital stock once or several Acting also for the Supervisory Board, the Executive Board prepares times by up to a total of €3.5 million until May 30, 2018, by issuing a Statement on Corporate Governance in accordance with Section new shares in return for cash. The statutory subscription rights of the 289a of the HGB and Section 3.10 of the German Corporate Govern- shareholders may be excluded. ance Code for the Group. The Statement on Corporate Governance including the Corporate Governance Report is published in the A contingent capital increase of €13.9 million was approved under Sec- chapter “To our Shareholders” and on the corporate website tions 192 et seqq. of the AktG at the AGM held on March 14, 2001. www.fraport.com under the section The Fraport Group. The purpose of the contingent capital was expanded at the AGM on June 1, 2005. The contingent capital increase also serves to fulfill Key features of the internal control subscription rights under the approved Fraport Management Stock and risk management system Options Plan 2005 (MSOP 2005). The Executive Board and Super- The description of the key features of the internal control and risk man- visory Board were authorized to issue up to 1,515,000 stock options agement system with respect to the accounting process in accordance to beneficiaries entitled to subscribe until August 31, 2009, in accord- with Section 315 (2) no. 5 of the HGB can be found in the chapter titled ance with more detailed provisions in this regard. Some of the shares “Risk and Opportunities Report” beginning on page 67 of this report. which were issued to members of the Executive Board as part of performance-related remuneration until 2010 are subject to a vesting period of twelve or 24 months. Remuneration Report

Contingent capital totaled € 3.4 million as at December 31, 2013. In The following remuneration report describes the main features of the 2013, subscription rights in the amount of € 226,000 (22,600 options) remuneration system for the Executive Board and Supervisory Board of were exercised under MSOP 2005. Fraport AG in accordance with the statutory regulations and the recom- mendations of the German Corporate Governance Code (GCGC) as Under a resolution of the 2010 AGM, the Executive Board is authorized amended on May 13, 2013. It summarizes which principles apply in to purchase treasury shares of up to 3 % of the capital stock available determining the total compensation of the members of the Executive at the time of the 2010 AGM. The Executive Board may only use these Board and explains the structure and amount of the remuneration of treasury shares to serve subscription rights under MSOP 2005, while the Executive Board and Supervisory Board members. the Supervisory Board may use them as a share-based portion of the Executive Board’s remuneration. No treasury shares were purchased Remuneration of the Executive Board members in 2013 based on these authorizations. in fiscal year 2013 Remuneration system The aforementioned provisions set under Section 315 (4) of the HGB Executive Board remuneration is set by the Supervisory Board upon are rules customarily applied by similar listed companies and are not the recommendation of its executive committee and is reviewed on intended to hinder any takeover attempts. a regular basis. The remuneration of the Executive Board members of Fraport AG shall be in proportion to the tasks of the position and Report on the relationships with affiliated companies the company’s situation and in line with a transparent and sustainable Due to the interest of 31.37 % (previous year: 31.40 %) held by corporate governance approach which focuses on the long-term. the State of Hesse and 20.03 % held by Stadtwerke Frankfurt am Main Holding GmbH (previous year: 20.05 %) as well as the consortium Compensation is comprised as follows: agreement concluded between these shareholders on April 18/23, 2001, Fraport AG is a public-controlled enterprise. There are no control or >> Non-performance-related components (fixed salary and compen- profit transfer agreements. sation in kind) >> Performance-related components with a short- and mid-term The Executive Board of Fraport AG therefore compiles a report on the incentive effect (bonus) relationships with affiliated companies in accordance with Section 312 >> Performance-related components with a long-term incentive effect of the AktG. At the end of the report, the Executive Board made the (Long-Term Strategy Award and Long-Term Incentive Program) following statement: “The Executive Board declares that under the circumstances known to us at the time, Fraport AG received fair and ad- Generally, the Supervisory Board has been guided by the principle that equate compensation for each and every legal transaction conducted. in the ordinary course of business, members of the Executive Board During the reporting year, measures were neither taken nor omitted shall receive a fixed annual salary, which makes up approximately 35 % at the request of or in the interests of the State of Hesse and the City of total compensation. The bonus payment should also amount to of Frankfurt am Main and their affiliated companies.” approximately 35 % of total compensation. The Long-Term Strategy Award should account for approximately 10 % of total compensation and the share of the Long-Term Incentive Program about 20 %. the case of statutory insurance, half of the total statutory contributions. insurance, total halfofthe statutory case ofstatutory the toward insurance andin pensioninsurance case ofvoluntary their inthe Executive Board membersalsoreceive total halfofthe contributions personalsituation. of compensation dependsonthe available to all Executive Board same way; members in the amount the using acompany driver. carwith Thiscompensation inkindisgenerally tax from benefitsubject to income pecuniary pensation inkindisthe benefits).Com- compensation inkindandother payments (ancillary compensation forIn addition,the Executive Board membersincludes credited hisremuneration against of2013from AG. Fraport Board of Flughafen Hannover-Langenhagen GmbH was Supervisory the received asamemberof by DrZieschangfor hisactivitiesperformed companies iscredited remuneration. the against Thecompensation Group compensation companies, heorshereceives the from such If anExecutive Board memberhassuchother board mandates at mandates related to Group companies”). indirect oradirect interest ofmore 25 than Executive Board memberfor AG companies inwhichFraport holdsan The fixed annualcompensation alsocovers anyby an activityperformed generally annually, to ensure itisappropriate. that is reviewed fixedThe amountofthe annualsalary ona regular basis, entire the period. Executive Board receive members,asarule, for afixed annualsalary termemployment the oftheir During agreement (generally five years), Non-performance-related components implicit maximumlimits. respectivethe andaretherefore fixed subject gross annualsalary to are contributions, to inafixeding performance-related proportion for pensionbenefitcommitments.Thecommitments,includ- in 2009. In addition, Executive Board members received contributions (see alsoGroup note timestock 45).Thelast options were issuedwas stockthe long-termrunning of options incentivestill plan effect aspart are stock issuedinprevious still options outstanding, years, have that a In additionto aforementioned the remuneration components, there components ofwhichhave not yet beenfully paidout. wasthat granted previous the during fiscal years 2010 the to 2013, Board. This maximum limit also applies in relation to remuneration the €2.3 millionand€1.65for otherExecutive the membersof Executive ofthe components. Chairman For the Board amountsto this member for aforementioned sumofthe the respective remuneration year 2014,amaximumlimitwas eachExecutive definedwith Board versionGCGC inthe infiscal dated May effect 13,2013,with starting In order to remuneration-related comply the with amendmentsofthe Fraport AnnualReport2013 % (so-called“other board less than one fiscal year, apro bonuspayment rata ismade. If anExecutive Board memberholdsanactive positionfor formance. or partial repayment, Executive basedonthe Board member’s per Board’s control, itcangrant abonusatitsdiscretion orwaive full the figures have decreased due the to influencesoutsideof Executive relevant Board the opinionthat is ofthe business Supervisory If the rately beindividually andmust reviewed eachyear for compliance. A possiblerepayment for eachfollowing exists obligation year sepa- year after the relevant the year after fiscal year, 20 bonusto AG.of the Fraport sameapply to Shouldthe second the year Executive inquestion,the Board member hasto pay back30 anaverageleast of70 provision. IfEBITDA andROFRAfollowing inthe year donot reach at 50 statements. financial Board hasapproved respective the Supervisory consolidated the after year. Theremaining bonuspayments are payable onemonth within anticipated bonuspayments fiscal arethe during paidoutmonthly 140 maximumbonusamount foras of2012the afiscal year islimited to trapolated for entire the year. For Executive Board membersappointed employmentor the contract was- amendedin2009,anamountex bonus paidfor memberwas 2009orifthe appointedyear the during eters. Thebonusamountfor onefiscal year iscappedat175 each employment contract aforementioned andaddingthe param- individual multiplierfor eachExecutive Board member, stipulated in multiplying EBITDA eachminusabasicallowance, andROFRA, by an The actualbonusfor anExecutive Board memberiscalculated by success ofacompany. are recognized parameters businessmanagement for the measuring (“return assets”). onFraport Both key figures (EBITDA and ROFRA) ROFRA interest the onGroup assets; total i.e.the return oncapital for respective the fiscal year. EBITDAthe Group is operating result, The bonusisdependentonEBITDA Group andROFRAFraport ofthe (bonus) effect incentive along-term Without Performance-related components shareholders. AG, ofFraport specifically employees, customers and stakeholders into reasonable consideration long-term the interests main ofthe creates anadditionallong-term incentiveThe LSA takes effectthat LSA) Award, Strategy (Long-Term effect incentive along-term With % of the calculated% ofthe bonuspayments have aconditionalpayback % of the bonuscalculated% ofthe pro forma for fiscal year 2011.50 % of the corresponding key% ofthe figure the fiscal for Group ManagementReport/Situationofthe % of the bonushasto% ofthe berepaid. % of the % ofthe % of 37 % -

Consolidated Financial Statements Group Management Report 38 Fraport Annual Report 2013 Group Management Report / Situation of the Group

As part of the LSA, each Executive Board member is promised a pro- amount of time the Executive Board member actually worked for the spective financial reward for one fiscal year – the first being in 2010 for company. There is no right to payment for a three-year period which the year 2013. After three fiscal years have expired (the fiscal year in has not yet expired at the time the employment contract has been question and the two following years), the extent to which the targets legally terminated due to extraordinary circumstances that are within have been met is determined and the actual payment is calculated the control of the Executive Board member (termination by request of based on these results. The paid amount can exceed or fall below the the Executive Board member without cause pursuant to Section 626 of prospective amount but is capped at 125 % of the originally stated the German Civil Code (BGB), termination for cause within the control amount. Performance targets are customer satisfaction, sustained of the Executive Board member in accordance with Section 626 (BGB) employee development and share performance. All three targets are or if the Executive Board member has been removed from his or her equally important under the LSA. As in the previous year, for 2016 a office for cause pursuant to Section 84 (3) of the AktG. If an Executive prospective sum of € 120 thousand has been promised to the Chairman Board member joins the company during the course of a fiscal year, the of the Executive Board, while a prospective sum of € 90 thousand each Supervisory Board decides if and to what extent the Executive Board has been promised to the other members of the Executive Board. member is entitled to participate in the LSA program for this fiscal year. Michael Müller and Anke Giesen participate in the Plan Award for 2011 and 2012 on a pro rata basis. Long-Term Incentive Program (LTIP) The LTIP is a virtual stock options program. Beginning in fiscal Customer satisfaction is evaluated on an annual basis using an estab- year 2010, the Executive Board members of Fraport AG are promised lished assessment system for airlines, real estate management, retail each fiscal year a contractually stipulated amount of virtual shares within properties and passengers. Whether or not a target has been met is their employment agreements, so-called performance shares, on the determined by comparing the corresponding data (in percentage condition that and depending on whether they meet pre-defined points) at the beginning of the three-year period with the average performance targets (the so-called “target tranche”). After four fiscal achieved over the same period. If the actual result exceeds or falls below years – the performance period – it will be determined to what the target by two full percentage points, the bonus paid for customer extent these performance targets have been met and the number of satisfaction is increased or decreased correspondingly. performance shares actually due to the Executive Board member, the so-called actual tranche. The actual tranche can exceed or fall below Sustained employee development relates to employee satisfaction and the target tranche but is capped at 150 % of the target tranche. the changes in headcount. The Supervisory Board decides the extent to which the target has been met. Its decision is based on the results The two performance targets “earnings per share” (EPS) and “rank total of the employee satisfaction barometer (a survey among Fraport AG shareholder return MDAX” are relevant for deriving the actual tranche employees carried out annually or at least every two years) and the from the target tranche, with earnings per share (EPS) being weighted responsible development of headcount in view of the economic situ- at 70 % and rank total shareholder return MDAX at 30 %. For the fiscal ation of the Group. year 2013, as in the previous year, 9,000 performance shares were allocated to Dr Stefan Schulte as a target tranche, while Peter Schmitz For the share performance target, the Fraport share price development and Dr Matthias Zieschang each received 6,850 performance shares. over the corresponding three-year period is compared with the aver- For the fiscal year 2013, 6,850 performance shares were allocated to age development of the MDAX and a share basket, which includes the Anke Giesen and 3,550 were allocated to Michael Müller. shares of the operators of the Paris, Zurich and Vienna airports. The payment for this share performance target is again determined by com- In order to determine to what extent the EPS performance target has paring the reference value calculated at the beginning of the three-year been met, the weighted average target EPS during the performance period with the actual development. Positive or negative deviations period, based on the strategic development planning applicable at the increase or decrease the prospective bonus correspondingly. time of the award, is compared with the average EPS actually achieved during the performance period. For the evaluation to what extent the Entitlement to LSA payments is established by approval by the Super- target has been met, the target EPS for the first fiscal year accounts visory Board of the consolidated financial statements for the last fiscal for 40 %, the second for 30 %, the third for 20 % and the fourth for year of the performance period. 10 %. If targets have been met 100 % over the performance period, the actual tranche corresponds to the target tranche. If the actual If an Executive Board member leaves Fraport AG before the end of EPS differs from the target EPS, the number of allocated performance a three-year period, the performance targets for such an Executive shares is adjusted accordingly. If the actual EPS falls below the target Board member are not calculated until after this period has expired. EPS by more than 25 percentage points, no performance shares are The award for the entire period is then paid on a pro rata basis for the issued for the EPS performance target. If the actual EPS falls below sand per performance share tranche. sand perperformance Schulte andfor other the ExecutiveDr Board members€ been defined,whichamounts to amaximumof€ been allocated andwillbeinfuture, maximumpayment amountshave for allLTIPFurthermore, share tranches have that performance already year, begins. relevantperiod inwhichthe performance fiscal of the Stock Frankfurt the of ExchangeJanuary month the during situatedclosing share inXETRA orasimilarly prices trading system at of issuance”corresponds to weighted the average company’s ofthe timeof issuance”. at the price The “relevant time share atthe price mance shares actualtranche ofthe multipliedby “relevant the share paymentLTIP islimited to 150 the sharesFor allocated all performance from fiscalthe year 2014 onwards, period. fiscal last the performance year of Board consolidated ofthe statements financial the for Supervisory the share. Entitlementto LTIP payments by approval isestablished the by forprice LTIP calculatingthe payment islimited to € shares issuedin2013andprevious fiscal the years, relevant share performance For the period. quent to day last the performance ofthe Stock 30trading Exchangefirst the days during immediately subse- situated inXETRAorasimilarly prices trading system Frankfurt atthe correspond to weighted the average company’s of the closing share The relevant share usedfor price LTIP calculatingthe payment shall shares place. issuedover fifth increase numberofperformance inthe there willnot beafurther AGreturn ifFraport better target; MDAX ranks five, than performance shares will be issued for rank the totalno performance shareholder reduced by AG points. If Fraport 2.5 percentage worse ranks 45, than rank exceeding below orfalling actualtranche 25,the isincreased or total shareholder return MDAX its weighted with average. For each number25among ranks period, AG, performance the during Fraport downwards. Theactualtranche target shallequal the tranche if target, four the relevantperformance fiscal years willbe weighted and dividends) over period. Just as EPSwith the performance the in relation to total the shareholder return (share development price average rank AG ofFraport allcompanies amongst listed MDAX inthe mance target hasbeenmet iscalculated by determining weighted the The extent to rank whichthe total shareholder return MDAX perfor pointsisnotpercentage taken into account. 25 exceeding targetsline method. the by Any more performance than target tranche. Intermediate values canbecalculated usingastraight- by actual tranche points, the 25 percentage amounts to 150 to 50 actualtranche points,the amounts percentage 25 by EPS target the Fraport AnnualReport2013 % of the target% ofthe tranche. actualEPSexceeds target Ifthe the EPS % of the product% ofthe from perfor the 60 per performance 60 perperformance 810.0 thousand for810.0 thousand 616.5 % of the % of the - thou - - (previous year: € (previous year: € ous year: € (previous year: Peter €50.2thousand), (previ Schmitz€532.6thousand - sand), Anke Giesen€ year: DrStefan Schulte € value allocationresulted accrual following inthe for fiscal expenses the employmenttime the contract was terminated. legally TheLTIP fair haslasted twelve period lessthan whose performance atthe months member isnot shares entitledto for any atarget tranche performance Inaddition,aformer Executive Board largely sameasfor the LSA. the forThe rules LTIP entitlementsofformer Executive Board membersare dated February 26,2002),to whichMr.dated February Schmitzisentitledunder company the –concerning benefitplan Fraport” for SeniorManagers, accountplan–“Kapitalkontenplan capital Fraport (guideline 2ofthe asatDecember31,2013.Thebasicaccountcommitment gross salary annual gross salary. Mr. Schmitzisentitledto 38.0 As atDecember31,2013,DrSchulte is entitledto 58.0 durationon the oftimeanExecutive Board memberisappointed. annually by rising percentage 2.0 ofacontractually percentage the agreedthe basisofassessment,with The retirement pension ofanExecutive Board memberisdefined by households inGermany. for oflivingfor cost index the increase private consumerprice inthe considered to doesnotthe adjustment fall below besatisfiedif the company’sthe shallbe obligation economicsituation.Theadjustment into interests accountthe former ofthe Executive Board memberand 1 of each year,January pensions are the adjusted at discretion, taking employmentthe to be terminated or not be extended). Effective 75 retirementtotal emolumentsandthe ofthese pensionwould exceed up untilreaching 60years suchcredit aswithout the insofar ofage, ment relationships shallbecredited retirement accrued against pay pension payments from previous or, where applicable,later employ- retirement,Upon incomefrom active employment aswell asretirement retirement pension. If nowidow’s children pensionispaid,the eachreceive 20 or widower; children entitledto receive benefits receive 12 ents. Theseamountto 60 depend- Board memberdies,benefitsare paid to hisorhersurviving of,hisorheremployment agreement. IfanExecutiveor uponexpiry manently unableto work orretires theduration from of, officeduring generally entitledto retirement benefitsifheorshebecomesper dependents.AnExecutiveprovision for Board surviving memberis The Executive Board membersare entitledto pensionbenefitsand Pension commitments % of the fixed salary (100 fixed% ofthe salary 256.3 thousand), Dr Matthias Zieschang € Dr Matthias 256.3 thousand), 112.8 thousand). 256.3 thousand), Herbert Mai€ Herbert 256.3 thousand), 233.3 thousand, MichaelMüller€128.7 233.3 thousand, Group ManagementReport/Situationofthe 648.8 thousand (previous648.8 thousand year: €370.5 % of the retirement% ofthe pensionfor widow the % of the fixed salary if Fraport if Fraport AG wishes fixed% ofthe salary % upto alimitof75 % ofhisfixed annual 200.1 thousand 532.6 thousand 532.6 thousand %, dependent % ofhisfixed thousand thousand % of the % ofthe % each. - thou 39 -

Consolidated Financial Statements Group Management Report 40 Fraport Annual Report 2013 Group Management Report / Situation of the Group

Fraport AG’s company benefit plan up to December 31, 2008, shall The surviving dependents of Executive Board members appointed from be credited pro rata temporis against pension payments over a period 2012 receive the following benefits: If there is no prior event giving of eight years after the employment contract has been terminated or rise to retirement benefits, the benefits for the widow or widower is expires. As at December 31, 2013, Dr Zieschang is entitled to 42.0 % the pension capital generated so far. If there is no eligible widow or of his fixed annual gross salary. widower, each half-orphan will receive 10 % and each full-orphan will receive 25 % of the pension capital generated so far as a one-time In the event of occupational disability, the pension rate for Dr Schulte, payment. If the pension capital reached is less than €600 thousand Mr. Schmitz and Dr Zieschang amounts to at least 55 % of their upon death, Fraport will increase it to this amount. The payment risk respective fixed annual gross salaries or of the contractually agreed of this increase has been covered by a term life insurance policy. If an basis of assessment. Executive Board member dies while collecting retirement benefits, the widow or widower is entitled to 60 % of the last retirement benefits For Executive Board members appointed as of 2012, the pension granted. Each half-orphan receives 10 % and each full-orphan receives benefits and provision for surviving dependents as well as provision for 25 % of the last retirement benefits granted. If there are no surviving long-term occupational disability are governed by a separate benefit dependents as set forth above, the heirs receive a one-time death agreement. This calls for a one-time pension capital or life-long retire- grant in the amount of € 8.0 thousand. ment payments after the insured event become due. The pension capital is generated when Fraport AG annually credits 40 % of the fixed Moreover, each member of the Executive Board has entered into a two- annual gross salary paid to a pension account. The pension capital year restrictive covenant. During this term, reasonable compensation in accumulated at the end of the previous year pays interest annually the form of an annual gross salary (fixed salary) pursuant to Section 90a at the interest rate used for the valuation of the pension obligations of the HGB shall be paid. Partly payments shall be made monthly. The in the German commercial balance sheet of Fraport AG at the end of compensation shall be generally credited against any retirement pay- the previous year pursuant to Section 253 (2) of the HGB, which is ments owed by Fraport AG, inasmuch as the compensation together at least 3 % and at most 6 %. This is increased by 1 % on January 1 of with the retirement payments and other generated income exceed each year for life-long retirement payments. No further adjustment 100 % of the last fixed salary received. is made. If the pension capital reached is less than € 600 thousand when retirement benefits fall due as a result of long-term occupational No other benefits have been promised to Executive Board members, disability, Fraport AG will increase it to this amount. In the event of should their employment be terminated. long-term occupational disability within the first five years of their activities performed as members of the Executive Board, it is foreseen The retirement pension entitlement of former Executive Board mem- that Executive Board members can postpone the receipt of a monthly bers is determined by a percentage of a contractually agreed fixed pension of to a maximum of five years since the start of the employment basis of assessment. contract. Until the postponed start of the pension benefit payments, they will receive a monthly benefit of € 2.5 thousand. This risk of pen- Detailed information on the compensation components and amount sion payments in the increase phase and of payments for the increase of compensation of the Executive Board members of Fraport AG in has been covered by an occupational disability insurance policy. The 2013 is shown in the following tables. full amount of all income within the meaning of the Income Tax Act from employment or self-employment is credited against the retire- Remuneration of the Executive Board 2013 ment benefits paid until the end of the month in which the Executive The following remuneration was paid to the members of the Executive Board member reaches the age of 62. Board:

Remuneration of the Executive Board 2013 in €´000 Remuneration paid out in cash Total

Performance- Performance- related component related component without long-term with long-term Non-performance-related components incentive effect incentive effect

In kind Fixed salary and other Bonus LSA

Dr Stefan Schulte 415.0 22.5 674.8 100.0 1,212.3

Anke Giesen 300.0 43.9 476.3 0.0 820.2

Michael Müller 300.0 47.0 296.4 0.0 643.4

Peter Schmitz 300.0 33.1 476.3 70.0 879.4

Dr Matthias Zieschang 320.0 43.9 523.9 70.0 957.8

Total 1,635.0 190.4 2,447.7 240.0 4,513.1

Table 13 Total Herbert MaiuntilSept.30,2012 Dr MatthiasZieschang Peter Schmitz Michael MüllerfromOct.1,2012 Dr StefanSchulte in €´000 2012 Board Executive the of Remuneration in €´000 2012 Board Executive the of Remuneration year 2014. Board finalbonus willdecideonthe for 2013infiscal The Supervisory additiontoand the bonusprovision the in2013. paymentsThe bonus includes the on account for fiscal the year 2013 Total Dr MatthiasZieschang Peter Schmitz Michael Müller Anke GiesenfromJan.1,2013 Dr StefanSchulte in €´000 2013 Board Executive the of Remuneration year 2013,only Michael Müllerowned 1,800 stock options from option ofthe period-appropriate value:the distribution Infiscal through profitthe fiscal andlosslead expense in to an year from In accordance stock IFRS2,the option with programs are recorded Total Herbert MaiuntilSept.30,2012 Dr MatthiasZieschang Peter Schmitz Michael MüllerfromOct.1,2012 Dr StefanSchulte Fraport AnnualReport2013

Non-performance-related components Non-performance-related Fixed Salary

1,335.0 Executive Board in2012: The following total remuneration was paidto membersofthe the LTIP value atfair timeofoffer. asatthe iscarried Board membersamounted to €42.2thousand. previous Inthe €12.6 thousand. year, for Executive expense the the cised by MichaelMüllerin2013,whichresulted of inanexpense MSOP 2005,tranche 2009.Thesestock options were fully exer 225.0 320.0 300.0 415.0 75.0

Performance-related componentwithlong-termincentiveeffect Performance-related Performance-related componentwithlong-termincentive effect Performance-related and other In kind 140.4 Remuneration paidoutincash 30.2 40.1 37.5 10.3 22.3 Group ManagementReport/Situationofthe

related component without long-term incentive effect Performance- 2,067.5 Bonus 350.6 514.3 467.5 662.4 72.7 Share-related remuneration Share-related remuneration

1,099.7 3,542.9 1,275.1 Table 15 Table 14 Table 16 Total 158.0 605.8 874.4 805.0 263.9 263.9 136.7 263.9 346.7 937.8 222.1 222.1 201.8 291.8 LTIP LTIP 0.0 41

-

Consolidated Financial Statements Group Management Report 42 Fraport Annual Report 2013 Group Management Report / Situation of the Group

Provisions for pensions and similar obligations Pension obligations to currently active Executive Board members Of the future pension obligations of € 32,105 thousand, € 24,035 thou- were as follows: sand relates to pension obligations owed to former Executive Board members and their dependents. Current pension payments amounted to € 1,740 thousand in 2013.

Pension obligations to currently active members of the Executive Board in €´000 Obligation Change Obligation Dec. 31, 2012 2013 Dec. 31, 2013

Dr Stefan Schulte 4,019 118 4,137

Michael Müller 33 128 161

Peter Schmitz 1,799 39 1,838

Dr Matthias Zieschang 1,654 143 1,797

Anke Giesen from Jan. 1, 2013 0 136 136

Total 7,505 564 8,069

Table 17

Other agreements August 31, 2013. For this and other tasks, Fraport AG supplied Prof Each member of the Executive Board has entered into an obligation Dr Bender with offices, office equipment and supplies and an assistant to purchase shares in Fraport AG amounting to at least half a year’s until August 31, 2013. Prof Dr Bender did not receive any compensa- fixed gross salary (cumulative cost at the time of purchase) and hold tion from Fraport AG for his activities. Until August 31, 2011, travel them for the duration of the respective contract of employment. expenses were reimbursed upon authorization and approval of the Already existing holdings of Fraport AG shares are taken into account. trip according to the applicable company guidelines. After this time, The obligation to purchase and hold shares is reduced pro rata if the travel expenses were no longer reimbursed. employment contract has a term of less than five years. If the Executive Board member is reappointed, the equivalent value of the shares an Prof Dr Bender also received pension payments of € 252.4 thousand. Executive Board member is obliged to hold is increased to at least a Prof Dr Bender has agreed that the post-employment restrictive cov- full year’s gross salary. enant, which applies for two years after the employment agreement ends, was extended for an additional two years up to August 31, 2013. Within the context of her additional expenses for maintaining two Prof Dr Bender waived the right to compensation as set out in Section households, Anke Giesen was granted a monthly gross allowance 90a of the HGB payable by Fraport AG from January 2011. of € 2 thousand for twelve months after the start of the employment contract. Accordingly, she was granted a total of € 24.0 thousand for Other benefits 2013. In addition, relocation costs were covered by Fraport AG upon Executive Board members have as other benefits the option of private submission of relevant invoices in a total amount of € 9.5 thousand. use of a company vehicle with a driver, private use of a company cell phone, a D & O liability insurance with a deductible pursuant to Section The employment contract of Herbert Mai provides for a two-year post- 93 (2) sentence 3 of the AktG, an accident insurance and a life-time employment restrictive covenant following the end of his employment entitlement to use the VIP service of Fraport AG, as well as access to a on September 30, 2012. The compensation to be paid to Mr. Mai by parking spot at Frankfurt Airport. Fraport AG reimburses travel costs for Fraport AG as set out in Section 90a of the HGB was € 150.0 thousand company trips and other business expenses in line with the regulations for 2013. Pursuant to the employment contract, the above-mentioned in general use at Fraport AG. compensation shall be credited against the retirement payments inasmuch as the compensation together with other generated in- Disclosures pursuant to Section 15a of the WpHG come received exceeds 100 % of the last fixed annual gross payment Pursuant to Section 15a of the WpHG, members of the Fraport Execu- received. Furthermore, Mr. Mai received pension benefit payments tive Board and Supervisory Board are required to disclose transactions of € 135.0 thousand, a proportional bonus for the fiscal year 2012 of with shares of Fraport AG or any related financial instruments to the € 350.6 thousand and a proportional payment of the LSA for the fiscal company and the German Federal Financial Supervisory Authority year 2010 of € 64.2 thousand. (BaFin) within five business days. This also applies to persons who are closely related to members of the Executive Board and Supervisory The former Chairman of the Executive Board, Prof Dr Wilhelm Bender, Board as defined in Section 15a (3) of the WpHG. These transactions continued to render consulting services to Fraport AG even after have been published by Fraport in accordance with the deadlines his departure from the company. The consulting agreement, which under Section 15a of the WpHG. ended in 2011, was extended for another two years and ended on expenses are reimbursedexpenses independently. receivinging attended, amount. Travel Chairman twice that the with of € Board, acompensation EconomicAdvisory For membershiponthe 2013 year fiscal in Compensation of the Economic Board Advisory BoardMember Supervisory in € Remuneration of Board the 2013 Supervisory Board become membersthat committee memberships.Supervisory year. This additionalcompensation ispaidfor amaximumoftwo fixed compensation of€ Board membersreceive anadditional, on acommittee, Supervisory each receive membership amount.For their oneandahalftimesthis other ofthe committees Chairmen andthe shall Chairman Vice the financeandauditcommitteeof the shall receivethat amount, twice payable fiscal endofthe atthe year, the Chairman and the Chairman receive afixed compensation of€ Board shall tion. According Supervisory memberofthe to every this, Statutesof the AG. of Fraport It is provided solely as fixed remunera- Board islaiddown inSection12 The remuneration Supervisory ofthe 2013 year fiscal in Remuneration Board of the Supervisory Ismail Claudia Devrim Mario A. Uwe Hakan Kathrin Detlef Peter Dr Margarete Jörg-Uwe Erdal Lothar Dr Roland Stefan H. Michael Mehmet Arno Gabriele Dr hcPetra Gerold Hans-Jürgen Werner Edgar Christian Karlheinz Prof Dr-IngKatja Fraport AnnualReport2013

2,500 ispaidfor year every ofmembershipand € Aydin Amier Arslan Bach Becker Cicek Dahnke Draths Feldmann Haase Hahn Kina Klemm Krieg Lauer Odenwald Özdemir Prangenberg Rieken Roth Schaub Schmidt Schmidt Stejskal Strenger Weimar Windt

5 thousand percommittee5 thousand for eachfullfiscal 22.5 thousand for22.5 thousand eachfullfiscal year

2,000 permeet- Fixed salary 19,687.50 13,125.00 13,125.00 13,125.00 13,125.00 22,500.00 35,625.00 33,750.00 22,500.00 22,500.00 22,500.00 22,500.00 13,125.00 22,500.00 33,750.00 22,500.00 22,500.00 22,500.00 18,750.00 45,000.00 22,500.00 9,375.00 9,375.00 7,500.00 9,375.00 1,875.00 9,375.00

Board amounted to € In fiscal year 2013,aggregatethe Economic compensationAdvisory of Board for fiscal year 2013: The following remuneration was paid to Supervisory members ofthe the thousand). compensation of€ Board received an aggregate All active Supervisory membersofthe she isamember. willalsobereimbursed. expenses Accrued or sheattends committee andevery meeting attended ofwhichheor Board memberreceives € of any membership of committees. in the change Each Supervisory year receive case pro inthe compensation. rata Thesameholdstrue Boardcurrent fiscal the during members oforleave Supervisory the remuneration Committee 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 2,083.33 5,833.33 5,833.33 2,083.33 5,597.23 2,916.67 2,916.67 3,333.33 4,763.90 2,083.33 5,000.00 5,000.00 2,916.67 5,000.00 4,166.67 5,000.00 6,666.67 4,166.67 833.33 0.00

889.5 thousand in2013(previous889.5 thousand year: €853.4

90.5 thousand (previous90.5 thousand year: € Group ManagementReport/Situationofthe 800 for every Supervisory Board meeting he 800 for Supervisory every Attendance 11,200.00 12,000.00 13,600.00 16,800.00 11,200.00 11,200.00 12,800.00 11,200.00 10,400.00 19,200.00 12,800.00 2,400.00 6,400.00 2,400.00 7,200.00 6,400.00 5,600.00 4,000.00 6,400.00 2,400,00 4,000.00 5,600.00 6,400.00 2,400.00 5,600.00 9,600.00 0.00 fees

93.0 thousand). 13,858.33 36,720.83 25,358.33 13,858.33 25,922.23 22,441.67 21,641.67 14,833.33 33,663.90 57,625.00 57,350.00 13,858.33 49,300.00 38,700.00 26,500.00 33,100.00 22,441.67 38,700.00 15,941.67 56,550.00 38,700.00 39,566.67 51,700.00 28,516.67 64,600.00 45,300.00 2,708.33 Table 18 Total 43

Consolidated Financial Statements Group Management Report 44 Fraport Annual Report 2013 Group Management Report / Economic Report

Economic Report during the course of 2013, increasing momentum in global economy could be seen.

General Statement of the Executive Board Despite a slight cooling compared to the previous year, the German economy asserted itself well in a European comparison, at +0.4 % in In a volatile economic environment, Fraport reached its forecasted 2013. After a phase of weakness in winter 2012/2013 (calendar- and goals in fiscal year 2013 (see also 2012 Group management report seasonally-adjusted –0.5 % in the fourth quarter of 2012 and stagnation beginning on page 70). After a significant decline in passenger in the first quarter of 2013, each compared to the previous quarter), numbers at the Frankfurt site during the first months of 2013, a good the economic situation improved during the course of 2013 and thus booking situation during the summer months and capacity increases found its way back to moderate growth in a difficult international by the airlines during the last months of the fiscal year contributed to environment. The driver of this positive annual result was domestic the slight positive passenger growth overall of 0.9 %. In addition to consumption and particularly government and private consumer this, the increase in the airport and infrastructure charges and rising demand, which grew by a total of 0.9 % on a price-adjusted basis. retail revenue in connection with the operation of Pier A-Plus led to Exports fell by 0.2 %, while imports fell by 1.2 %. higher revenue at the Frankfurt site. At Group companies outside of the Frankfurt site in which Fraport holds an interest of at least 50 %, the In spite of the overall moderate economic development, the price passenger and result figures continued to develop positively. levels remained high on the raw materials markets, particularly for crude oil (average global market price per barrel in 2013: US-$106, As a result of the operating activity, the Group EBITDA was within the compared to around US-$107 in 2012 and 2011). The growth rate of forecasted range, at around € 880 million. Lower depreciation and global trade was again nearly 3 %. amortization than expected led to a Group EBIT of some €528 mil- lion, which was slightly above the forecast. In conjunction with the anticipated deterioration in the financial result, the Group result was Gross domestic product (GDP)/world trade lower than the value of the previous year, as expected in the forecast. Real changes compared 2013 2012 to the previous year in % Due to a continued solid supply of liquidity, the medium- to long- term oriented repayment profile as well as the positive development Germany 0.4 0.7 of free cash flow, the Executive Board again characterizes the financial Euro zone – 0.4 – 0.7 position of the Fraport Group as stable at the end of fiscal year 2013. Bulgaria 0.5 0.8 The Executive Board therefore assesses the business development in Turkey 3.7 2.2 Peru 5.4 6.3 2013 as favorable overall. USA 1.9 2.8

Japan 1.7 1.4

Great Britain 1.7 0.3 Economic and industry-specific Conditions Russia 1.5 3.4

China 7.7 7.7 Development of the economic conditions India 4.4 3.2 With growth of around 3 %, the development of the global economy Brazil 2.3 1.0 in the past fiscal year was within the relatively wide range of forecasts World 3.0 3.1 by various banks and financial institutions of 2.4 % to 3.5 %. However, World trade 2.7 2.7 the development in the individual regions varied strongly. While the 2013 figures based on: International Monetary Fund (IMF, January 2014, Table 19 countries of the Euro zone as a whole suffered a drop in economic partially October 2013), Organisation for Economic Co-operation and Development (OECD, November 2013), Deutsche Bank (February 2014), performance of approximately 0.4 % due to the continuing effects of DekaBank (February 2014), German Federal Statistical Office (January/ the European debt crisis, the Asian countries – essentially Japan, China February 2014), www.tecson.de (oil prices, January 2014). 2012 figures: IMF (January 2014, partially October 2013) and German Federal Statistical and India – and the countries of Latin America and Africa developed Office for GDP of Germany (January 2014). significantly more strongly, but lagged behind expectations. Overall, 0.3 percentage points. 0.3 percentage period bynearly impact ontraffic the2013 reporting resultsduring growthwith of0.2 and airmail),Germany was slightly above previous the year’s level traffic of0.5 recorded aslightcumulative increase airports German inpassenger Alsoinfluenced crisis. by strike-related and weather flightcancellations, ous year’s dueto level,continuingeffects the the of debt particularly “Asset andFinancial Position” report. 53ofthis beginningonpage consolidatedstatements canbe financial the chapterfound in titled respect to wake effects ofthe the on turbulences.Anexplanation May anadditionalprotection 10,2013containing requirement with andbyfor zoningsupplementdecisionof commercial the properties protection more stringent 30,2013containing April requirements zoningsupplementdecisionof the December 18,2007,with Development (HMWVL)supplemented zoningdecisionof the ofEconomics,Transport, andRegional Urban The HessianMinistry supplementedin Frankfurt airport the of expansion the for decision Zoning Significant Events 2014). (January 2014),ADVforGermanycargoinplaceofairfreight (ACI, February Source: ACIPassengerFlashandFreightDecember2013 World Africa Asia-Pacific Middle East Latin America North America Europe Germany in % Changes comparedtothepreviousyear Passenger 2.6 by 1.0 economicmomentum,airfreightglobal volume moderately gained growthsenger of3.9 worldwide fullyear pas- For the ACI of2013,the preliminary reported Development of the global aviation market Group. Fraport the ment thehad businessa significant influence on that development of fiscal past the During year,there were environ the legal nochanges to - Development of the legal environment Fraport AnnualReport2013

%, Europeanthe air freight volume was only 0.8 %. While the passenger figure at European airports grew figure passenger atEuropean%. Whilethe airports by and cargo and %. With respect%. With to cargo tonnage handled(airfreight %. Theleapyear day from 2012hadanegative %. In the same period, faced with sustained low sustained with faced sameperiod, %. Inthe development by region

Passengers 2013 10.1 – 0.6 3.9 7.2 4.8 1.3 2.6 0.5

% above previthe

Airfreight Table 20 2013 – 2.7 – 0.2 5.4 1.0 0.9 0.5 0.8 0.2 -

EBITDA effectexpectedexpansion. in2014fromthe a result terminal ofthe inaugurations willinitially offsetthe positive andinterest as expenses areas. Thehigherdepreciation, amortization company Twin Star’s growth potential andretail passenger further inthe areas.age Theterminals make the Group asignificantcontribution to areasand non-Schengen andattractive shoppingandfood andbever among otheranarrival area canhave things, that separate Schengen respective requirements. passenger Thenew have, facilities passenger asimilardesign, whicharein December2013with customized to the inAugust2013anda21,000m²terminal atBurgas Airport The Group company Twin Star openedanew 20,000m²terminal at Burgas and Varna in openings Terminal 2021 onwards demand. inlinewith of around phasecanbeginoperation first 2015andthe from around can beginas buildingapplication,construction submissionofthe the Frankfurt’scapacity neededto serve projected growth intraffic. With by zoning decision and creates the required the long-term terminal approved expansion ofTerminal Construction airport ofthe 3ispart onSeptember 17,2013. Airport ofFrankfurt part southern on the for terminal CityofFrankfurt the ofthe authority regulatory struction submitted buildingapplicationtoFraport the competent the con- planning ofTerminal anotification 3with dated September 6,2013, to HMWVLapproved detailed changes the the After necessary the submittedin Frankfurt Building application for Terminal 3 a businesscenter. additionalapronamong otherconstructed things, areas, ahotel and Gateway Capital has, newof the terminal,Northern the consortium from terminalon earnings the opening.Inadditionto construction the therefore, Group the company negative anticipates effect atemporary and interest for expenses Group the company.amortization Overall, effects,the inaugurationterminal willalsolead to higherdepreciation, retail growth Group ofthe company. Inadditionto positive operating conditionsare now inplacefor future and The necessary passenger and food andbeverage shopslocated inanarea covering 13,500m². in additionto asignificantly improved moreexperience, retail passenger andoffersannual capacityofmore 17millionpassengers than itsguests, Petersburg nowSt. hasan inDecember2013.Asaresult, airport the operations new atthe terminal atPulkovo in started Fraport Airport Gateway Capital Together Northern inthe consortium, itspartners with Airport Petersburg St. at opened Terminal Group ManagementReport/Economic 45 -

Consolidated Financial Statements Group Management Report 46 Fraport Annual Report 2013 Group Management Report / Economic Report

New Hesse coalition agreement presented the first months of the fiscal year, a solid bookings situation during the On December 18, 2013, the parties CDU and “Bündnis’90/Die Grünen” summer months and capacity increases by the airlines during the last presented their coalition agreement for the Hesse parliamentary term months of 2013 contributed to the overall slight growth. There was a from 2014 to 2019. The coalition agreement includes, among others, negative impact not only from the absence of the leap-year day, but the following items that have an impact on Frankfurt Airport: needs- also due to the fact that various airlines reduced services as a result of related examination of the Terminal 3 construction project, introduc- continuing consolidation measures. Moreover, the cumulative result tion of a noise emission ceiling and additional measures to restrict was impacted by a large number of weather and strike-related flight aircraft noise pollution. According to the coalition agreement, these cancellations, affecting more than 360,000 passengers. measures shall primarily include restrictions from 10 p.m. to 11 p.m. and 5 a.m. to 6 a.m. with the objective of achieving regular seven-hour The disruptive events and service reductions primarily influenced breaks from noise during the night. A description of regulatory and domestic and European passenger traffic. While both traffic mar- legal risks, as well as risks in relation to the airport expansion at the kets still showed perceptible declines until the middle of the year, Frankfurt site, can be found in the “Risk and Opportunities Report” they gradually increased during the further course of the year and beginning on page 67 of this report. recorded a solid growth rate at the end of the year (domestic traffic: +0.9 %; European traffic: +1.6 %). Despite the negative base effect from the leap-year day in the previous year, intercontinental passenger Business Development traffic increased by 0.5 % in the reporting period. Development was above average particularly to and from Central America (including the General development of the airport portfolio Caribbean) and Central Africa, but also to and from North America. The Fraport Group’s airports (those in which an interest of 50 % or Sub-markets in the Far East, particularly India, China, Taiwan and more is held) handled some 103.5 million passengers in 2013 – an Malaysia, also grew perceptibly. In contrast, the political unrest in the increase of 4.1 %. The number of aircraft movements increased slightly Middle East and North Africa was reflected in the lower passenger by 0.7 % to more than 825,000. The cargo volume grew by 1.3 % to a volumes for these regions. good 2.39 million metric tons. In total, around 197.9 million passengers (+5.2 %) used Fraport airports (including minority-owned airports and At nearly 2.1 million metric tons handled, cargo tonnage exceeded the management contract at Cairo Airport). the previous year by 1.4 %, or around 28,000 tons. In line with the passenger traffic, European volume showed the most dynamic growth Development at Frankfurt Airport with an increase of +4.4 % (+9,300 metric tons). Intercontinental cargo With an increase of 0.9 % to some 58.0 million passengers, Frankfurt throughput, which has significantly higher volume at nearly 88 % of Airport exceeded the volume of the previous year by around 515,000 the total, gained by 1.3 % (around +23,600 metric tons). Domestic passengers. After a significant decline in passenger numbers during tonnage declined by nearly 10 %.

2013 passenger and cargo development at Frankfurt Airport (% change over 2012) in % – 4.9 0.2 – 1.1 – 2.2 0.4 0.7 – 0.7 3.6 3.6 3.5 3.5 2.9 0.9 – 3.4 4.6 0.1 – 0.6 3.0 – 0.6 1.7 0.0 3.1 4.0 2.6

0

January February March April May June July August September October November December

Passengers Cargo Graphic 8 Total Group Hanover Varna St. Petersburg Cairo Burgas Antalya Xi’an Lima Frankfurt 2) 1) Delhi under or management airports airports Minority-owned contracts 50 least at of share aFraport with Airports 3) 2) 1) of 4.2 achieved growth Airport Burgas 2.5millionpassengers, nearly With (+1.0 %). tons slightly above previous the year’s level ataround metric 297 thousand increased by 14.7 by 8.8 14.9 million passengers. The number of international passengers grew showed again strong growthLima Airport of11.9 Russia andUkraine inparticular. to positive the development. originatedAdditional passengers from Turkeywithin (+10.2 (+6.4 by 7.1increased At site Frankfurt the of outside Development at about55 day. Theshare oftransfer previous –asinthe passengers year –stood the missingleap-year highnumberofflightcancellationsand lines, the and 1.7 and the cumulativeand the maximumtake-off average a rising With number of size, the aircraft Fraport AnnualReport2013 Commercial trafficonly;in+outtransit. Without trafficfiguresfortheairportsinRiyadhundJeddah(management contracts). Thosefigureswerenotavailableuntiltheeditorialdeadline. Proportionateconsolidation,51 Commercial trafficonly;in+outtransit. Inaddition,Fraportholdsa100

Airport, the number of passengers infiscal numberof passengers the year 2013 Antalya Airport,

% to approximately 21.7 million passengers) and domestic traffic % compared to previous the year. Thereason for higher the % to around share7.0 million and the passengers of domestic %, respectively, dueto consolidationmeasures air the of the %. % to around 26.7 million. Both international traffic

% to around 7.9 million. Cargo throughput was % to around contributed 5.0millionpassengers)

% votingrightsand50 % shareintheoperatingcompanyofnewDakarAirport,whichiscurrentlyunderconstruction. 51.00/50.00 Fraport share Fraport share 100.00 30.00 60.00 35.50 60.00 24.50 70.01 10.00 in % in % 0.00

3) weights were down by 2.0

% equityshare. % 103,465,572 aircraft movementsaircraft 1) 94,425,036 12,854,366 13,577,713 26,045,593 14,913,314 58,036,948 36,712,455 26,715,971 5,234,909 1,319,240 2,480,099 % in2013to some 2013 2013

Change in% Change in% Passengers Passengers over 2012 over 2012 % % - 15.2 11.2 11.9 –1.0 –7.7 6.4 4.1 8.0 4.2 0.9 7.3 7.1 1) 2) 2) reason was numbersatAirBerlin. decliningpassenger remaining showed months numbers. The main declining passenger ofMay, months the JuneandJuly recorded growth, passenger the was slightly below previous the Airport year’s level (–1.0 approximatelyWith volume the 5.2millionpassengers, atHanover agrowthwith rate under15 ofjust previousthe year. International traffic continued to develop positively increasepassenger of15.2 around saw St.With 12.9millionpassengers, Petersburg a Airport previous year. an increase or11.2 of2.6millionpassengers, fiscal endofthe at the stoodyear ataround 26.0million.This represents Xi’an achieved again Passenger volume positive Airport performance. strong trafficgrowth (+15.4 recorded particularly to previous the year, to around International 36.7millionpassengers. showed anincreaseDelhi Airport intraffic of7.3 of 8.0 amongotherandshowed things, of Russianpassengers, anincrease fromgrowththe period alsobenefitedthe reporting during Airport was morenumber ofpassengers travelers primarily from Russia.Varna

Cargo (airfreightandairmailinm.t.) Cargo (airfreightandairmailinm.t.)

% to some1.3millionpassengers. 2,393,784 2,094,607 789,317 178,876 296,517 595,775 14,666 2,625 2013 2013 n. a. n. a. n. a. 35

Change in% Change in% over 2012 over 2012 % for fullyear the to of2013incomparison Group ManagementReport/Economic 15.1 n. a. n. a. n. a. –7.6 5.1 1.3 5.5 2.3 1.0 1.4 6.3 %.

889,964 825,265 137,480 142,251 225,099 153,122 472,692 309,074 169,488 76,060 11,516 18,447 2013 2013 %, compared to the % in2013compared %).

Change in% Change in% Movements Movements %). While over 2012 over 2012 Table 22 Table 21 10.7 –5.1 –2.2 –0.3 –2.0 3.8 0.7 7.2 9.4 3.2 1.3 6.4 47

Consolidated Financial Statements Group Management Report 48 Fraport Annual Report 2013 Group Management Report / Economic Report

Comparison with the forecasted development As a result of the decline in construction activity, other internal work In comparison to the outlook for fiscal year 2013, the passenger capitalized declined from € 44.0 million to € 35.1 million (– 20.2 %). traffic in particular at the Frankfurt site slightly exceeded expectations Other operating income fell mainly due to lower releases of provi- (outlook 2013: at approximately the level of 2012). The reasons for sions, from €55.8 million to € 34.3 million (– 38.5 %). the deviation were essentially the good booking situation during the summer months and capacity increases by the airlines during the last At € 2,631.4 million total revenue achieved an increase of € 89.1 million months of the fiscal year. With a growth rate of 1.4 %, cargo tonnage or 3.5 %. When adjusted for the application of IFRIC 12, this was also moderately exceeded the forecast of stagnation or a slight rise. € 52.1 million above the corresponding value of the previous year, at The Group airports in which Fraport holds an interest of at least 50 % € 2,565.7 million (+2.1 %). developed positively, in line with the outlook. An increase in cost of materials mainly resulted at the Frankfurt site from higher energy supply services and utilities related to the first-time Results of Operations full-year operation of Pier A-Plus. Lower costs from land sales had the opposite effect. In external business, especially the recognition of Revenue and earnings development for 2013 capacitive capital expenditure in the Group companies, Twin Star and In fiscal year 2013, the Fraport Group generated revenue of Lima, in connection with the application of IFRIC 12, as well as higher € 2,561.4 million. Compared with the previous year, this corresponded traffic-related concession fees in Lima, led to a rise in cost of materials. to an increase of € 119.4 million, or 4.9 %. Adjusted for the recognition In total, cost of materials increased by € 54.9million, to € 613.0 million of capacitive capital expenditure, neutral on earnings, in the Group (+9.8 %). When adjusted for the recognition of capacitive capital companies Twin Star and Lima in connection with the application of expenditure in the Group companies Twin Star and Lima this was at IFRIC 12, revenue of € 2,495.7 million was above the corresponding € 547.3 million and therefore € 17.9 million above the adjusted previous value for the previous year by € 82.4 million (+3.4 %). year’s value (+3.4 %).

At the Frankfurt site, the increase in airport and infrastructure charges Personnel expenses increased slightly by €3.9 million to €946.8 mil- and a rise in retail revenue in connection with the operation of Pier lion (+0.4 %) in the reporting period. Thus personnel expense per A-Plus, in particular, led to higher revenue. Outside of Frankfurt, posi- employee amounted to an average of €45.2 thousand (previous year: tive development was recorded particularly in the Group companies €45.0 thousand). The increase was mainly attributable to the collective Lima, Antalya and Twin Star. In the previous year, high one-time wage agreement in the public sector. proceeds from the realization of land sales at the Frankfurt site resulted in additional revenue. Other operating expenses fell slightly from € 192.6 million to € 191.4 million (– 0.6 %) mainly due to the provision created in the pre- vious year for noise abatement measures in the amount of € 10.5 million. Group revenue and return on revenue Higher assessment and consulting costs, among other things, had an

€ million in % opposite effect.

2,194.6 2,371.2 2,442.0 2,561.4 12.7 14.6 14.9 13.3

0 0 2010 2011 2012 2013

Group revenue Return on revenue Graphic 9 The 6.5 of to agrowth year, corresponds this previous the with compared When (previous year: € year: (previous – declining interest result (interest incomeandinterest of expenses) 2013 by € (previous year: € interest in fiscal expense an amountyear of 2013,€ with related work to hadareducing construction effectreported the on is accounted for using equitythe method. Capitalized interest expenses translation effectsthe Group in company Pulkovo in St. Petersburg which companies was, in particular, result the of negative foreign currency currency translation effects,the the declinein result from associated courseoffinancialassetin the andassociated management foreign to higherproceeds previous inthe year from disposalofassets the negative development other of the financial result due was primarily (2013: – resultand adeclineinthe from associated companies by € € financial result resultedthe fromthe declineinfinancial other result by Depreciation and amortization increasedIFRIC 12,this from 35.2 site Frankfurt outside expenditure of the inconjunction with capital adjusted for from recognition income and expenses the of capacitive samelevel the nearly at34.4 at Compared to previous the year, EBITDA the rose period €31.5 million to € reporting the positiveBecause ofthe revenue development, Group EBITDA during 0 € million Group EBITDA and EBITDA margin Fraport AnnualReport2013 27.3 million(2013:€ € Group EBITDA 177.0 million(previous year: – financial amount of – result in the 710.6 % (+€ 2010 32.4 € 13.6 millioncompared 2012:€ with 55.5 million(previous year: – 32.1 million). of € of 352.7 EBIT million) to aGroup led 28.2 million). EBITDA margin 3.2 millioncompared 2012:€ with 802.3 2011 33.8 % (– % to 35.3 € in the amount of € of amount the in 174.1 inthe change million),the 0.4 percentage points).When 0.4 percentage € € 848.7 187.4 million deteriorated in 131.9 million). With aslight 131.9 million).With 2012 34.8 %. 880.2 million (+3.7 11.7 million). While the 11.7 million).Whilethe margin remained 528.1 million. 352.1 million 30.5 million) 30.5 million) 18.1 million 25.3 million 25.3 million 880.2 2013 34.4 Graphic 10 in % %). 0 2012, asanticipated. financial the Groupresult, result was belowthe level offiscal year € € from ledto expenditure, reducedthings, the Group capital EBITof expected, whichresulted, than amongother tion andamortization 0 € million earnings and result Group forecasted range from € Correspondingly,expectations. Group EBITDA increased the within of revenue Retail inthe &Real segmentremained Estate slightly below velopment site Frankfurt increased atthe revenue, development the slightly better-than-forecasted While the expectations. de- passenger Group Fraport have ofthe expenses developed scopeof the within 2012from 72onwards), page report management revenue and Compared to forecasted the development for 2013(seealsoGroup Comparison with the forecasted development With a tax rate atax With of30.8 EBT in2013declinedfrom €364.1 millionto €340.7million(– Due to significantdeterioration the the financial theGroup of result, the 2012valuethe (– The (– 6.3%). declined compared to previous the year by €15.8millionto €235.7 520 million. In conjunction with the forecasted the 520 million.Inconjunctionwith deterioration ofthe 528.1 million, which was above expected range the of upto around Group result 271.5 2010 2.86 basic earnings pershare at€2.40werebasic earnings €0.19 below Earnings pershare(basic) 7.3 %). % (previous year: 30.9 250.8 2011 870 millionto € 2.62 Group ManagementReport/Economic per share 890 million.Lower deprecia- 251.5 2012 2.59 %), the Group result%), the 235.7 2013 2.40 Graphic 11 6.4 million million %). in € 49 0

Consolidated Financial Statements Group Management Report 50 Fraport Annual Report 2013 Group Management Report / Economic Report

Segments

Aviation Retail & Real Estate

€ million € million

693.9 774.9 823.4 845.2 403.1 444.7 452.9 469.0 131.6 187.8 201.9 205.4 294.7 305.3 335.2 350.7 56.4 96.1 79.6 88.1 227.9 232.1 252.8 267.9

0 0 2010 2011 2012 2013 2010 2011 2012 2013

Revenue EBITDA EBIT Graphic 12 Revenue EBITDA EBIT Graphic 13

Revenue in the Aviation segment for the fiscal year 2013 was With revenue of € 469.0 million, the Retail & Real Estate segment € 845.2 million, which corresponds to an increase of € 21.8 million recorded an improvement of € 16.1 million in 2013 compared with (+2.6 %) compared with the previous year. With a slight rise in the the previous year figure (+3.6 %). The higher revenue was essentially number of passengers, the increase in airport charges in Frankfurt by caused by the positive developments in the areas of retail and real an average of 2.9 % as of January 1, 2013 was the primary basis of the estate. Mainly thanks to the opening of Pier A-Plus, the key performance revenue growth. On the expense side, a provision for noise abatement indicator “net retail revenue per passenger” improved from € 3.32 to measures in the amount of € 10.5 million, formed in the second quarter € 3.60 (+8.4 %). In the previous year, high one-time proceeds from the of 2012, led to a positive base effect for the fiscal year 2013. Adjusted realization of land sales resulted in additional revenue. Non-staff costs for this base effect, operating expenses increased during 2013 in par- fell, primarily as a result of reduced expenses in connection with land ticular as a result of having operated Pier A-Plus, which was opened in sales, while higher expenses for energy supply services and utilities October 2012, for an entire year for the first time. acted in the opposite direction.

Despite a lower volume of internal work capitalized, segment EBITDA Segment EBITDA increased by € 15.5 million to € 350.7 million (+4.6 %) improved by €3.5 million to € 205.4 million (+1.7 %) as a result of the as a result of the positive revenue development. Depreciation and increase in revenue and the base effect resulting from the provision amortization remained largely unchanged, leading to an equally formed in the previous year. Lower depreciation and amortization in considerable increase in segment EBIT of € 15.1 million (+6.0 %). connection with lower capital expenditure led to a segment EBIT of € 88.1 million. Compared with the previous year, this signified growth of € 8.5 million (+10.7 %). € Ground fiscal past in the Handlingsegmentinthe year rose slightly by Despite lower maximumtake-off site,the weights at revenueFrankfurt 0 € million Ground Handling sented adeterioration of€ EBIT of –€ led to asegment among other to things, utilization of Pier A-Plus the to € EBITDA previous rose the with in comparison year from € effect fromthe staff-relatedrelease ofa provision in2012,segment Despite lower other operating income as a result negative of the base deployment ofpersonnelledto areduction inpersonnelexpenses. provisionson the formed inprevious years, aswell asanoptimized retirement, acorrespondingly highernumberofclaims with partial Conversely, movement the of employees into passive the phase of their expenses. andpersonnel costs a corresponding increase innon-staff alsobrought ofwinter services Theperformance of winter services. charges, aswell positive asthe revenue effects fromthe performance increasethis result was effects the of price primarily for infrastructure Fraport AnnualReport2013 6.9 millionto € Revenue 38.2 million(+1.1 658.6 2010 11.0 44.1 2.3 million. Compared previous the with year, repre this - EBITDA 656.2 million(+1.1 %). Higher depreciation and amortization due, %). Higherdepreciation andamortization 655.5 EBIT 20.3 54.5 2011 1.2 million. %). With a slight passenger growth, aslightpassenger %). With 649.3 2012 37.8 –1.1 37.8 million 656.2 2013 38.2 –2.3 Graphic 14 from € Adjusted for applicationofIFRIC12,segmentrevenue the improved Twin applicationofIFRIC12. the Star andLimainconnectionwith to increased capacitive Group inthe expenditure companies capital € of € The segment External realized Activities an increase & Services in revenue the figurethe previousthe of year by € Twin Star Group companies. At € mainly due to positive contributions from Antalya, the Lima and Segment EBITDA improved by € asaresult ofhighertraffic-relatedprimarily concession feesinLima. Adjusted for applicationofIFRIC12,operatingincreased the expenses expenditurecapital in Twinthe Star and Lima Group companies. due to recognition the of capacitive increasedexpenses in particular growth Lima,Antalya inthe andTwin Star Group companies. Operating The positive development ofrevenue was essentially dueto passenger 0 € million &Services Activities External 37.0 million, a major part of the additionalrevenue ofthe 37.0 million,amajorpart was attributable Revenue 74.6 million to € 135.6 240.2 439.0 2010 487.7 million in the previous487.7 millioninthe year to € EBITDA 591.0 million (+14.4 148.1 254.7 496.1 EBIT 2011 Group ManagementReport/Economic 12.1 millionto €285.9million(+4.4 174.4 million, segment EBIT exceeded 174.4 million,segmentEBITexceeded 9.7 million(+5.9 %) in the fiscal %) in the yearAt 2013. 164.7 273.8 516.4 2012 525.3 million(+7.7 %). 174.4 285.9 591.0 2013 Graphic 15 %). %), %), 51

Consolidated Financial Statements Group Management Report 52 Fraport Annual Report 2013 Group Management Report / Economic Report

Development of the key Group companies the Group’s key companies with an interest of at least 50 % outside The following table shows the pre-consolidation business figures for Frankfurt:

Development of the key Group companies

€ million Fraport share Revenue 1) EBITDA EBIT

2013 2012 2011 2010 2013 2012 2011 2010 2013 2012 2011 2010

Antalya 2) 51 %/50 % 320.7 301.1 293.9 266.9 276.2 259.6 254.2 216.9 177.9 161.7 158.0 122.8

Lima 70.01 % 208.0 191.3 159.3 135.4 71.3 65.5 53.2 49.1 57.7 52.5 42.7 37.6

Twin Star 60 % 101.1 63.3 62.8 40.2 28.2 25.9 23.8 21.1 20.2 18.8 17.2 13.9

1) Revenue adjusted by IFRIC 12: Antalya 2013: €320.7 million, 2012: €301.1 million, 2011: €293.9 million, 2010: €258.3 million. Table 23 Lima 2013: €193.8 million, 2012: €180.0 million, 2011: €146.0 million, 2010: €130.7 million. Twin Star 2013: €49.6 million, 2012: €45.9 million, 2011: €43.7 million, 2010: €38.0 million. 2) Proportionate consolidation with 51 % voting interests and 50 % equity share. Values correspond to 100 % figures before proportionate consolidation.

Comparison with the forecasted development Due primarily to the fact that earnings development of the Group Compared with the forecast for the fiscal year 2013 (see also Group company Antalya was stronger than expected, EBITDA and EBIT in the management report 2012, beginning on page 72), the development External Activities & Services segment were higher than the forecast of the Fraport segments over the past fiscal year was as follows: for the fiscal year 2013, which anticipated segment EBITDA and EBIT remaining at approximately the same level as the previous year. In the Aviation segment, both revenue and segment EBIT were slightly higher than expected for the fiscal year 2013. This positive develop- Segment contributions to Group revenue ment was due to the slightly better passenger development on the and EBITDA 2013 one hand and lower depreciation and amortization expenses on the The significant increase in revenue in the External Activities & Services other hand. segment, which was among others also due to increased capacitive capital expenditure in the Twin Star and Lima Group companies in With a growth of 3.6 %, the increase in revenue in the Retail & Real connection with the application of IFRIC 12, was also manifested in Estate segment remained slightly below the expected “significant” the fiscal year 2013 in the segment’s higher contribution to Group increase that was forecasted for 2013. This more modest increase in revenue (share 2013: 23.1 % compared to 2012: 21.2 %). Due to the revenue was due to lower income from energy supply services on the comparatively strong revenue development in the External Activities & one hand and lower than expected revenue from the retail business Services segment, the contribution to Group revenue in 2013 of the on the other hand. Expenses resulting from land sales were also lower, Aviation, Retail & Real Estate and Ground Handling segments was meaning that both segment EBITDA and EBIT rose considerably, in slightly lower (– 0.7, – 0.2 and – 1.0 percentage points, respectively). line with the forecast.

The development of the Ground Handling segment was also in line with the forecast, as a slightly more negative development in maximum take-off weights was offset by a better passenger development.

Segment contribution to Group revenue 2013 Segment contribution to Group EBITDA 2013 in % in %

AVIATION AVIATION 4 1 Aviation 33.0 1 1 Aviation 23.3 1 4 2 Retail & Real Estate 18.3 2 Retail & Real Estate 39.9 3 Ground Handling 25.6 3 Ground Handling 4.3 4 External Activities & Services 23.1 4 External Activities & Services 32.5

3 3 2 2

Graphic 16 Graphic 17 work amounted to €18.1 millionin2013(previous year: €28.2million). interest related€44.5 million).Capitalized expenses to construction operating projects (previousfor assets intangible year: andairport (previous expenditure year: €12.2million)and€65.8millionincapital €14.4 lion), €186.6millioninfinancialassets (previous €400.1year: million), was used for property, plant and equipment (previous year: €602.9 mil- for property, plantandequipment. €492.8 decreasedcash depositsandsecurities from €736.2millionto Cash flow usedininvesting investments activitieswithout in was lessincometax paid. that fact previous the with year (+3.9 cash flow) for fiscal past the year was up by €21.8millioncompared At €574.8million,cashflow from operating activities(operating flows cash of Statement Total Financial assets Investment property Property, plantandequipment Intangible assets Airport operatingprojects € million expenditure capital of overview Multi-year €395.1(previous period, year: reporting €1,059.7 million). In the during fiscal the than in2012 thus €397.8millionless year 2013and GroupThe Fraport recorded of€661.9million expenditure capital Capital expenditure Asset andFinancialPosition to Group EBITDA (– and Ground Handlingsegmentsrecorded aslightly lower contribution points).Despitepercentage anabsolute growth Aviation inEBITDA, the segmentalsoincreased to itscontribution Group EBITDAServices (+0.2 points).At2013 (+0.3percentage 32.5 driver Group-wide behindthe EBITDA development fiscal inthe year ashareWith of39.9 Fraport AnnualReport2013 million in capital expenditure for expenditure investmentmillion incapital property million, primarily duetomillion, primarily significantly lowerexpenditure capital %, the Retail%, the &Real segmentremained Estate the 0.5 and– %). This increase is primarily dueto%). Thisincrease isprimarily the 0.1 points,respectively). percentage %, the External%, the Activities &

661.9 186.6 395.1 2013 million million 14.4 57.1 8.7

assets, investments were madeinsecurities. primarily terminals the andtaxiways.and modernizing regard With to financial Airport’s Frankfurt expanding capacity, settling ofPierA-Plus costs the expenditureCapital for property, plant and equipment was focused on plant andequipment related to AG Fraport (previous year: €578.4 for expenditure property, ofcapital At greater €372.3million,the part €280.0 million(previous year: €779.2million). the Including cashoutflows for investments incashdeposits andsecurities, of €235.5million(previous year: – Compared previous the with year, represented this animprovement The lower cashoutflow led to apositive free cashflow of€73.1 million. € million Capital expenditure by segments 2013 broken down by segment: The following graphic shows expenditure for fiscal capital the year 3 cash flow usedininvesting fiscal past activitiesinthe year was 2 4 1,059.7 400.1 602.9 2012 12.2 39.1 5.4

1 Group ManagementReport/Economic 4 ExternalActivities&Services 3 GroundHandling 2 Retail&RealEstate 1 Aviation AVIATION €162.4 million). 1,440.2 440.4 876.1 2011 62.6 10.0 51.1

Graphic 18 million). million). 1,033.9 Table 24 105.4 192.7 297.5 223.1 781.5 66.3 2010 23.2 0.1 6.0 53

Consolidated Financial Statements Group Management Report 54 Fraport Annual Report 2013 Group Management Report / Economic Report

The cash flow used in financing activities of €255.1 million (previ- In connection with the financing for the portion of the Antalya con- ous year: cash inflow of €218.2 million) was mainly attributable to cession attributable to Fraport, €105.3 million of bank deposits were the change in loans. Loans taken up in 2012 resulted in a cash inflow, subject to drawing restrictions as at December 31, 2013. Cash and whereas in the past fiscal year loans were repaid, which resulted in cash equivalents as at the statement of cash flows therefore came to a cash outflow. €167.4 million as at December 31, 2013 (previous year: €127.1 million). The following table shows a reconciliation to the cash and cash equiva- lents as shown on the consolidated statement of financial position:

Reconciliation to the cash and cash equivalents as at the consolidated statement of financial position

€ million December 31, 2013 December 31, 2012

Cash and cash equivalents as at the consolidated statement of cash flows 167.4 127.1

Cash and cash equivalents with a duration of more than three months 332.4 584.0

Restricted cash 105.3 110.8

Cash and cash equivalents as at the consolidated statement of financial position 605.1 821.9

Table 25

Summary of the statement of cash flows and reconciliation to the Group liquidity (changes to the previous year)

€ million

127.1 574.8 – 492.8 212.8 – 255.1 0.6 167.4 1) 1,318.9 1,486.3 (– 5.7) (+21.8) (+243.4) (+255.8) (– 473.3) (– 1.7) (+40.3) (– 217.1) (– 176.8)

0

Cash and cash Cash flow Cash flow used in Cash flow Cash flow used Foreign currency Cash and cash Short-term Group liquidity equivalents as at from operating investing activities from/used in in/from financing translation effects equivalents as at realizable assets as at January 1, 2013 activities without investments cash deposits activities and change December 31, 2013 December 31, in cash deposits and securities in restricted cash 2013 and securities

1) The difference to cash and cash equivalents as at the consolidated financial position is due to the cash and cash equivalents Graphic 19 with a duration of more than three month and restricted cash.

Asset and capital structure mental protection requirements resulting from the zoning supplement In comparison with December 31, 2012, total assets of the Fraport decisions concerning commercial properties and wake turbulences Group as at the 2013 balance sheet date decreased by €117.2 million (see also the chapter titled “Significant Events” beginning on page 45). to € 9,523.4 million (– 1.2 %), mainly due to lower current assets and The increase in the item “other receivables and financial assets” was non-current liabilities. essentially the result of the capitalization of expenses in connection with the obligation to make compensatory payments for outdoor Non-current assets rose from € 8,140.8 million to € 8,220.9 million living areas in the amount of € 48.3 million on the basis of the Act for (+1.0 %) in particular as a result of the increase in the items “property, Protection against Aircraft Noise (Gesetz zum Schutz gegen Fluglärm, plant and equipment” and “other receivables and financial assets”. FluLärmG). Current assets showed a significant decline of 13.2 % to The increase in the item “property, plant and equipment” was mainly € 1,302.5 million. While the cash outflows for capital expenditure, the due to capital expenditure activities at the Frankfurt site. The capital dividend distribution and the payment of the annual Antalya conces- expenditure at the Frankfurt site also included expenses in the amount sion lowered the cash and cash equivalents, an increase in the item of € 32.8 million, capitalized as production costs in connection with “other receivables and financial assets”, due mainly to the reporting the capacity expansion that was conducted on the basis of the supple- date, caused an increase in current assets. (December 31,2012:104.9 balance sheet ratio date. avalue Thegearing attained of101.3 € (– liabilitiesfellNon-current from € 29.0 %). increased by pointsto 1.8percentage 30.8 equity lessnon-controlling interests andprofit earmarked for distribution) positive Group result of € € by € shareholders’Despite dividenddistribution, increased equity the (December 31,2012:€ (– a €135.9milliondecrease from level the onDecember31,2012 debtstoodAs atDecember31,2013,gross at€ financial liabilities. to € of € of outdoor livingareas, provisions were formedtotal inthe amount payments for obligation supplement decisionsandthe compensatory derivatives. resulting obligations from the zoning Inconnectionwith the lower concession liabilitiesandlower negative market valuations of repaymentthe ofloans,other liabilitiesfell, essentially asaresult of private amountof€ placementinthe liabilities. Whilethere was adrop infinancialliabilities–despite anew 2010 2011 € million 2012 2013 31 December at as position financial consolidated the of Structure Fraport AnnualReport2013 Currentliabilities Non-currentliabilities Shareholders’equity Currentassets Non-currentassets 3,098.8 million(+5.1 2,975.4 millionwas 1.4 6.3 3.0 901.3 million(+12.8 81.1 liabilities million.Current increased by €102.0 150.6 million in comparison with the 2012balancesheet the with 150.6 millionincomparison date to %) in particular asaresult oflower%) inparticular financialliabilitiesand other %). After deducting the Group’s deductingthe %). After of€ liquidity & Equity Liabilities Assets & Equity Liabilities Assets & Equity Liabilities Assets & Equity Liabilities Assets %). The primary reason for increase the was the %). Theprimary 235.7 million. The equity ratio 1,663.1 net million),the financialdebt of %) mainly asaresult ofadditionalcurrent % higher in comparison with the 2012 the with % higherincomparison %). 2,739.3 2,859.9 2,948.2 3,098.8 5,893.1 millionto € 50.0 million – in connection with 50.0 million–inconnectionwith % (December31, 2012: 4,461.7 million, 1,486.3 million 5,523.3 million 6,777.0 (shareholders’ 7,765.6 million 8,140.8 8,220.9 %

no significantimpact. inflation rates as fair alsohad the well as value offinancialinstruments fiscal past assetinthe structure of the year. andcapital in Changes creases inshareholdings hadamaterial effectthe development on Neither company acquisitions and disposals nor increases and de (24.5 split more or less equally across four financing sources: Bilateral loans financing the past fiscal base. the endof At year, thesource offunds was funding via operating cash flow andabroad diversified debt balanced In 2013,financialmanagement for Fraport AG continued to pursue companies abroad holds an interest inwhich Fraport 50 of at least AG,of Fraport Group the companies inGermany Group andthe Fraport’s canbasically beseparated financemanagement intothat analysis Financing (21.1 with anaveragewith fixed interest of3.9 period years. atyear-endinstruments 2013hadanaverage remaining term of5.6years %) and promissory note loans(31.1%) andpromissory %), bonds (23.3 5,608.4 5,503.5 5,523.3 5,893.1 %), loan financing from public loan institutions Group ManagementReport/Economic 2,393.5 %). Overall, financing the 1,458.8 822.8 1,302.5 861.0 1,499.8 901.3 799.3 Graphic 20 9,170.5 9,224.4 9,640.6 9,523.4 %. 55 -

Consolidated Financial Statements Group Management Report 56 Fraport Annual Report 2013 Group Management Report / Economic Report

To reduce interest rate risks from borrowing with floating interest rates, The majority of the Group companies in Germany are integrated into interest rate hedges were concluded in some cases for the financial the Fraport AG cash pool, so that acquiring funding comparable to liabilities relating to Fraport AG. The nominal value of these hedges Fraport AG financial management is not necessary. The majority of was around € 1,260 million at the end of the year 2013. Taking into the foreign Group companies in which Fraport holds an interest of account the hedged floating rate borrowing, the floating rate portion at least 50 % mainly obtain standard market funding through project of the gross debt of Fraport AG was nearly 40 % and the fixed portion financing arrangements. around 60 % (floating portion in the previous year: nearly 40 %, fixed portion: around 60 %). The cost of debt after hedging measures was The key features of the Group financing instruments with regard to 3.6 % (previous year: 3.6 %). type, maturity, currency and interest rate structures are presented in the following table:

Financial debt structure

Type Year of origin Nominal volume Maturity Repayment Interest Interest rate in € million structure

Promissory note loans 2008 463 2015 end of term floating 6-months-EURIBOR + margin

257 2017 end of term floating 6-months-EURIBOR + margin

2009 86 2014 end of term mainly floating 6-months-EURIBOR + margin

14 2017 end of term mainly floating 6-months-EURIBOR + margin

2010 35 2020 end of term floating 6-months-EURIBOR + margin

2012 300 2020 end of term mainly fixed 6-months-EURIBOR + margin

2022

2030

2012 60 2020 end of term fixed 2.74 % p. a.

2022 3.06 % p. a.

2013 50 2028 end of term fixed 4.0 % p. a.

Public loans EIB/ 2009 860 2013 – 2019 ongoing repayment floating 6-months-EURIBOR + margin WIBank during the term of the loans

Bond issue 2009 800 2019 end of term fixed 5.25 % p. a.

Private placement 2009 150 2029 end of term fixed 5.875 % p. a.

Bilateral loans 1993 – 2012 1,046 (mainly 2014 – 2028 mainly end of term mainly floating 3/6/12-months- denominated EURIBOR + margin in €)

Group companies abroad 2007 317 2019 – 2022 ongoing repayment mainly floating 6-months-EURIBOR + margin, in which an interest of at least 50 % (mainly €, during the term 6.88 % p. a. is held/project financing also US-$) of the loans

Table 26

The contractual agreements for the financial liabilities of Fraport AG Independent project financing arrangements of Group companies with included two customary non-financial covenants consisting of a an interest of at least 50 % contain a series of credit clauses typical for negative pledge and a pari passu clause. Only the loan financing this type of financing. These clauses include inter alia regulations under from public institutions included commonly accepted credit clauses which certain debt coverage ratios and indicators for debt ratio and regarding, among other things, changes in shareholder structure and loan periods must be complied with. Failure to comply with the agreed in the control of the company (so-called change-of-control clause). credit clauses may lead to restrictions on the distribution of dividends If these should have a proven negative effect on the borrowing capacity and/or to the early redemption of loans or to the additional payment of Fraport AG, the creditors have – above a certain threshold – the of equity. Compliance with these criteria is examined on an ongoing right to call the loans due ahead of time. basis. As at the 2013 balance sheet date, these were complied with. Commercial paper Bonds Time deposits Overnight deposits noteloans Promissory 1)

in % Allocation of industrial assets sectors (marketfollowing value: industry € commercialbonds andindustrial paperwere distributed across the note loans, industrial promissorry As at December 31, 2013, industrial Investment type Asset 50 at least foreignthe Group holdsaninterest companies inwhichFraport of AG, liquidity ofFraport the Group the companies inGermany and the liquidity analysis financingside, As inthe is to beseparated into analysis Liquidity Fraport AnnualReport2013 Asaresultofroundings,therecanbediscrepancieswhensumming-up. thereof industrials thereof insurances thereof financials thereof governmentbonds 8 7 6 9 structure of Fraport AG Fraport of structure %. 5 4 1 3 2 9 Sectors<5 8 Pharmaandhealthcare 7 Infrastructure 6 Transport andlogistics 5 Chemicals 4 Industrials 3 Automotives 2 Telecommunications 1 Foodandbeverages AVIATION 520.2 million): % Graphic 21 20.0 10.3 10.5 12.2 12.5 13.6 5.4 5.8 9.7

Not rated BBB A AA AAA in % In 2013,noinvestments were madeinnon-rated bonds. term rating equivalent issuers. ofthe presented graphic. inthe Commercial paperisassignedto long- the The ratings ofallinvestment are typesusedinfinancialmanagement Rating structure of assets assets of structure Rating maturity andinterestmaturity are structure presented following inthe table: characteristics AG’s ofFraport investment interms oftype, instruments tion ofinvestments incorporate fiscal bondsinthe year 2013.The key AGFraport hascontinuedto pursue its strategy of broad diversifica- Market value in €million 139.9 354.9 100.3 169.3 486.6 189.3 195.0 137.4 20.0 21.0 10.4 37.8 27.5 0 1)

20 Group ManagementReport/Economic Maturity in years 40 0.2 3.0 0.6 1.8 2.5 1.2 2.9 0.9 0.4 3.4 1.6 2.9 –

60 Interest rate Graphic 22 floating floating floating floating Table 27 fixed fixed fixed fixed fixed fixed fixed fixed fixed 26.1 60.2 12.4 0.0 1.3 57

Consolidated Financial Statements Group Management Report 58 Fraport Annual Report 2013 Group Management Report / Economic Report

As part of asset management, a yield of over 1 % was realized with the As it is partly subject to drawing restrictions arising from the conditions Fraport AG securities portfolio. The cost of carry, which is calculated stipulated in the project financing agreements, it is not a part of the using a (tiered-statement) maturity-matching principle, was 0.27 % asset management at Fraport AG. (€3.2 million) as at December 31, 2013. Those Group companies that are included in the cash pool of Fraport AG do not require their own Balanced finance structure at the balance sheet date asset management strategy because any available liquidity is transfer- The maturity profile of the Fraport Group’s financial debt showed a red to Fraport AG and is therefore part of the asset management of balanced medium-term repayment structure as at the balance sheet Fraport AG. Liquidity in the foreign Group companies with an interest date (debt in foreign currencies translated with the balance sheet of at least 50 % is €250.7 million (previous year: €218.7 million). date price).

Repayment profile as at December 31, 2013

€ million

1,486.3 294.1 507.3 499.3 413.4 561.1 1,172.9 234.7 19.2 411.3 323.8

0 Liquidity as at 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023++ December 31, 2013

Repayments (nominal value) Graphic 23

The maturity profile of the floating financial debt taking into account derivatives (nominal volume: about €1,430 million) is listed below:

Maturity profile of the floating financialdebt and derivatives

€ million

121 489 401 381 501 563 137 0 263 0 79 246 229 235 166 261 185 0 0 30

0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023++

Floating financial debt Derivatives Graphic 24

Based on the expected cash outflows as part of planned capital still provides for these financial assets to be kept until the end of their expenditure, liquid funds in the Fraport Group are invested mainly term. If a temporary requirement for liquidity arises, Fraport AG can rely on a short- to medium-term basis. Due to the delay in the start of on different sources, such as available free credit lines or time deposits, construction work on Terminal 3, an ongoing high level of liquidity is among other things. Alternatively, the loan maturity can also be settled expected. This liquidity will continue to be invested in accordance with from the free cash flow from economic activity. conservative investment requirements. The rolling liquidity planning

1) € million Development of the value added 2013 Value Management fiscal in the sitethe year at was belowFrankfurt €400millionandnot, financial positionshowedthe following expenditure deviations: Capital asset 72),the 2012,beginning onpage and Report Management Compared forecast the with for fiscal the year 2013(seealsoGroup Comparison with the forecasted development been aneedfor rating anexternal sofar. offree, approved portfolio creditits comfortable lines,there hasnot In lightofFraport’s always healthy liquidity supply very combinedwith Rating ments are ofnosignificancein Fraport’s financingmix. section for financingitsactivities.Off-balance-sheet- instru financing focuses productsFraport onthe presented “Financing inthe analysis” position financial the for instruments financial off-balance-sheet of Significance As aresultoftheadjustmentonsegmentlevel,therecanbediscrepancieswhensumming-uptoGrouplevel. was equal to Fraport’s WACC of9.5 before ofcapital cost the taxes. At 9.5 ment’s higherEBITdevelopment disproportionately compared with from €97.4millionto €98.1 million.Thisincrease was dueto seg- the method. TheRetail &Real segmentincreased Estate itsvalue added Group company Pulkovo, whichisaccounted for equity usingthe was aresult ofnegative foreign currency translation effects fromthe segmentfrom €68.9milliontoThis €51.3million. Activities &Services velopment. There was adecrease value inthe addedby External the from – time.The first the Groundvalue addedof Handling segmentdeclined formainly related anentire year to utilizationofPierA-Plus the for the beforeand aresulting increase ofcapital cost inthe taxes, whichwas lion. Thiswas duemainly to significantincrease assets, the in Fraport Aviationof the segmentdeclined from – added of€1.3million(previous year: €6.6million).Thevalue added fiscal In the Groupgeneratedthe year 2013, positiveFraport value

EBIT Fraport assets Costs ofcapitalbeforetaxes ROFRA Value addedbeforetaxes Fraport AnnualReport2013 EBITandFraportassetsareadjustedbytheresultsfromassociatedotherinvestmentsallocatedtosegment. €53.3 millionto – €57.8 milliondueto decline inEBITde- the

5,545.3 528.1 526.8 9.5 % 2013 1.3 Fraport Group

%.

%, the Fraport Group’s Fraport %, the ROFRA €114.7 millionto – 5,152.3 496.0 489.5 9.6 % 2012 6.6

2,208.0 – 121.7 209.8 4.0 % 2013 88.1 €121.7 mil-

Aviation 2,045.4 – 114.7 194.3 3.9 % 2012 79.6

Group value added before taxes and ROFRA and taxes before added value Group 0 € million fiscal year (forecast 2013:approximately 110 ratio was gearing the that alsolower forecasted than endofthe atthe shareholders’ equity andnot, asexpected, more quickly. Thismeant freement of the cash flow, net financialdebt rosemore slowly than fiscal endofthe at the year 2012.Asa the positiveresult of develop- equity ratio was alsoabove and not, asforecasted, below value the as of higherloanrepayments the this, planned.Inconnectionwith than total to assets expectation, also declined, mainly as a resultContrary negative;still value 2013:€73.1 million). significantly betterexpectedthan (forecast 2013:improvement, but range of€100millionto free €150million,the cashflow developed operating projects, whichwas lower atthe port forecasted endofthe site volume Frankfurt andthe atthe expenditure ofinvestments inair ofTerminal ofconstruction 3.Asaresult lower start ofthe in the capital as forecasted, around €450million.Thiswas dueto delay primarily the Group valueaddedbeforetaxes 1,787.8 15.0 % Retail &RealEstate 267.9 169.8 2013 98.1 2010 10.7 49.0

1,636.2 15.5 % 252.8 155.4 2012 97.4

11.2 74.1 2011 Group ManagementReport/Economic – 0.4% 584.1 – 57.8 2013 Ground Handling 55.5 – 2.3

ROFRA

– 0.2% 549.0 – 53.3 2012 52.2 – 1.1 2012 9.6 6.6

%; value 2013:101.3

1,143.2 14.0 % External Activities& 159.9 108.6 2013 51.3

2013 9.5 1.3 Services Services Graphic 25 1,118.6 Table 28 15.7 % 175.2 106.3 in% 2012 68.9 %). 9.5 59

1)

-

Consolidated Financial Statements Group Management Report 60 Fraport Annual Report 2013 Group Management Report / Economic Report

Comparison with the forecasted development Punctuality rate There were no differences in the fiscal year 2013 compared with the In the past fiscal year, the additional capacity from Runway Northwest forecasted development of Group and segment value added (see and terminal extension A-Plus continued to support the punctuality also Group Management Report 2012, beginning on page 72). As rate. With a punctuality rate of 82.3 %, the strong performance of the expected, Group value added in 2013 was lower than in the fiscal year previous year was exceeded by an additional 2.0 percentage points 2012. While the Retail & Real Estate and External Activities & Services (previous year: 80.3 %). Compared to fiscal year 2012, virtually all segments continued to make positive value added as forecasted, the months showed a positive trend. Only the months of January and Aviation and Ground Handling segments recorded negative value March 2013, strongly affected by the weather, recorded a significantly added. lower punctuality rate of 76.8 % and 78.2 % respectively (previous year: 84.0 % and 85.8 % respectively).

Non-financial Performance Indicators Punctuality rate at Frankfurt Airport 1)

Customer satisfaction and product quality in % Global satisfaction 65.0 70.0 75.0 80.0 85.0 As a result of the measures of the “Great to have you here!” service initiative taken in the past fiscal year (see also chapter titled “Strategy” 2013 82.3 beginning on page 29) global satisfaction of passengers at the Frankfurt site matched the previous year’s level of 80 %, with rising passenger 2012 80.3 numbers. In this context, the perceived quality ratings for internet availability developed in particular positively, even if potential still 2011 74.5 exists for improvement. At the Antalya site, customer satisfaction was

0.7 percentage points above the previous year at 79.1 % (previous year: 2010 78.8 78.4 %). The airport in Lima again achieved a high level of satisfied 1)  passengers of 98.5 % (previous year: 95.0 %). The level of satisfaction Figures according to IATA definition. Graphic 27 at the airports in Varna and Burgas improved from 83.7 % to 86.5 %. Baggage connectivity To ensure a high level of baggage connectivity, ongoing measures Global satisfaction at Frankfurt Airport were carried out together with airlines in Frankfurt in the past fiscal year. As part of the dialog campaigns, in which operating departments in % of Deutsche Lufthansa, among others, were involved, ideas were 65 70 75 80 85 collated in order to achieve a further improvement of the high level

2013 80 of connectivity. In the past fiscal year, connectivity at the Frankfurt site amounted to 98.4 % and was therefore 0.2 percentage points above

2012 80 the previous year’s figure.

2011 77 Baggage connectivity at Frankfurt Airport

2010 70 in %

97.0 97.5 98.0 98.5 99.0 Graphic 26

2013 98.4

2012 98.2

2011 98.6

2010 98.1

Graphic 28 low rating. Whenadjustedvalue for index would the these, beat2.93. 2011. Employee satisfaction at these companies received a comparably survey, inthe additional Group companies participated compared to negative trend was in2013, effect: magnifieddue two statistical to a 2011fiscal 2.76 inthe year to an averagegrade of3.02in2013.The overall employee declinedfrom satisfaction average the grade of site. Frankfurt Dueto atthe unfavorable the particularly conditions, opment andamendmentsto internal processes, Airport atFrankfurt regard with todominated traffic by devel ahighdegree ofuncertainty - The environment year’s inwhichlast employee took survey placewas Employee satisfaction employer an as Attractiveness ability improved considerably from 91.0 compared to 95.8 lowerthe availability of elevators (average annual availability of 95.0 lower previous the than year level of95.0 At 94.8 Equipment availability rate 2010 2011 2012 2013 Employee satisfaction 2010 2011 2012 2013 Equipment availability rate at Airport Frankfurt Fraport AnnualReport2013 Average grade in %

1) satisfaction survey wascarried outinthe2012fiscalyear.satisfaction survey and implementingtheresultingimprovement proposals,noemployee In connectionwithevaluatingtheresultsof the 2011employeesurvey 1) %, the equipment%, the availability rate fiscal past in the year was 85.0 4.0 % in the previous% inthe year). Incontrast, escalators avail - 90.0 3.0 % in2012to 92.2 95.0 %, primarily asaresult of %, primarily 100.0 2.0 % in2013. Graphic 30 Graphic 29 2.94 2.76 3.02 98.7 97.7 95.0 94.8 % 2012 2013 2010 2011 accidents work of Total number (– 6.9%). ber ofwork 2013fiscal accidentsinthe year fell from 1,445 to 1,346 employeeIn connectionwith safety measures taken, total the num- Employee safety and health management slightly higher than the rate the slightly higherthan of 9.7 turnoverstaff the regard With to staff, permanent rate of9.9 Star (– Group atthe companies Lima(– in particular grated into AG. Fraport OutsideGermany, headcountdecreased, the employees Group ofthe company FRA -Vorfeldaufsicht were reinte- FRA -Vorfeldkontrolle andFRA-Vorfeldaufsicht. AsofJuly 1,2013,the ofemployeesother to things, shifting the to Group the companies AGheadcount atFraport (– was operated for anentire year for time.The first the reduction in due to anincrease inclientcare aswell PierA-Plus that fact as the Groupthe company alsoincreased FraCareServices by 42employees numberofemployees secondhalfof2013.Inaddition,the in the in positive andthe traffic ofwinterdevelopment services performance (+223employees). Personal Service Thiswas dueto APS Airport the Group inthe company site, Frankfurt inparticular personnel atthe ous year: 20,963).InGermany, there was anincreased demandfor GroupFraport in2013remainedat20,947(previ largely constant - (employees excluding apprentices andemployees onleave) ofthe Compared previous the with year, average the numberofemployees Development of headcount Employees indicators for time first the for fiscalperformance year2014. forstatements time, a first the forecast ismade the non-financial for 20 to hasappliedGAS 2013consolidated the As Fraport financial Comparison to the forecasted development 42 employees). 0 500 Group ManagementReport/Economic 310 employees) among was attributable, % in the previous% inthe fiscal year. 1,000 54 employees) andTwin 1,500 Graphic 31 % was 1,601 1,475 1,445 1,346 61

Consolidated Financial Statements Group Management Report 62 Fraport Annual Report 2013 Group Management Report / Economic Report

Average number of employees

2013 2012 Change Change in %

Fraport Group 20,947 20,963 – 16 – 0.1

thereof Fraport AG 10,992 11,302 – 310 – 2.7

thereof Group companies 9,955 9,661 294 3.0

thereof in Germany 19,009 18,939 70 0.4

thereof abroad 1,938 2,024 – 86 – 4.2

Employees as at the balance sheet date 1) 21,986 22,276 – 290 – 1.3

1) Figures according to Global Reporting Initiative (GRI). Table 29

Average number of employees per segment

2013 2012 Change Change in %

Aviation 6,194 6,298 – 104 – 1.7

Retail & Real Estate 648 629 19 3.0

Ground Handling 9,017 8,924 93 1.0

External Activities & Services 5,088 5,112 – 24 – 0.5

Table 30

Whereas the reduced number of employees in the Aviation segment Additional key figures for diversity developed as follows in the fiscal was due primarily to falling employment within Fraport AG, the slight year 2013: The average age of Group employees increased from 41.2 growth in the Retail & Real Estate segment was essentially the result of to 41.8 years, despite a high number of trainees which remained an increase in the number of employees in Fraport AG. In the Ground nearly constant at 359 (previous year: 381). 19.7 % of employees had Handling segment, the number of employees increased in particular foreign citizenship (excluding German citizens with an immigration as a result of the previously mentioned demand for personnel in the background) (previous year: 20.1 %). The percentage of persons with Group companies APS Airport Personal Service and FraCareServices. In major disabilities reached 7.5 % on a Group-wide basis (previous year: the External Activities & Services segment, the number of employees 7.3 %). The number of training days fell considerably in the fiscal year fell primarily because of decreased employment in the Group com- 2013 from an average of 5.7 days in the previous year to 3.8 days. The panies Lima and Twin Star. reason for the decline in training days was, among other things, lower turnover and thus fewer newly-hired employees in training-intensive Development in personnel structure positions, such as aviation security. Fraport values the diversity of its employees. This diversity helps the Group to better understand the concerns of its customers, develop innovative solutions and remain competitive in a global economy. Employees and percentage of women as at December 31 Diversity management is therefore a central component of its personnel in % strategy. It is based on a Group agreement that includes among others the establishment of principles of anti-discrimination, advancement 20,905 21,445 22,276 21,986 of women into management positions and diversity. These principles 23.2 23.3 23.4 23.2 form part of recruitment decisions and training measures.

The percentage of women, one of the main key figures for diversity, was at 23.2 % in fiscal year 2013 and was therefore virtually unchanged to the previous year’s value of 23.4 %. The reason for the slight decline 0 0 in the percentage was, among other things, the lower number of 2010 2011 2012 2013 employees Group-wide with a simultaneous increase in headcount for the physically work-intensive Ground Handling segment. At a Employees Percentage of women Graphic 32 level of 27.6 % (previous year: 29.4 %), the percentage of women in management positions exceeded the aforementioned Group-wide percentage of women again in 2013. the futurethe economicsituation.Thecontinuedexpansive money market development, compared to 2012,andamore optimistic assessmentof The stock exchange in2013was shapedby more positive economic 31, 2013 1to December January from performance Share Share andInvestorRelations year: 817ideas,85implementations). submitted and74ideasimplemented fiscal past inthe year (previous core component ofGroup Overall, ideamanagement. 1,125 fiscal past time in2012,took inthe a placeagain thus became year and Group innovation The“ideaday”, prize. whichwas hosted for first the for MobilityintoSystem Advanced andawarding Age) andServices the to set tone the by PASS continuingthe project (Personalized Assistance andmobility. services on passenger Here, especially, was Fraport able 2013fiscal In the year, innovation management focused, inparticular, also examined. to new customer groups is expertise ofexisting site delivery andthe and transferred to company. the Product potential airport outside the sectors. way, Inthis ensures trends Fraport that are spotted on early own value-added chain as well practice”as “best companies in other senseof“openinnovation”,other inthe things, companies inits with outnetworkingcally carries innovation within among management, frameworkthe Group ofitsGroup-wide the specifi- ideamanagement, consistentlyWhile Fraport utilizes its own employees’ potential within 67). beginningonpage Report” and Opportunities andretainsatisfaction competitiveness (seealsochapter titled“Risk Group’s quality ofthe the own products to andthus increase customer proposals and innovations from employees as factors to serve improve IAS38.8doesnotwith apply. however, For Fraport, improvement disclosures in accordancedevelopment sense, so further strict in the group, inresearch doesnot engage and asaservice-sector Fraport, Research andDevelopment Fraport AnnualReport2013 ideas were € The marketyear endofthe atthe ofFraport was capitalization fiscal continuedandclosedthe year at€ quarter fourth share Fraport coalitionnegotiations fell inHesse,the the slightly asthe at € October 30of€ final quarter, sharethe in2013on price reached itshighest Fraport development sitesummerseason.Inthe the Frankfurt during atthe mainly amore favorable market environment positive andthe traffic for positive the development were secondandthird inthe quarter another 11.6 price improvedprice by 6.3 secondquarter inthe at€ unchanged almost first quarter closed the MDAX. the DAX,of the share Whilethe underperformed butclearly at 26.6 share of the was 2013 of €1.25 per share, annual performance the of€ price and anincrease of23.8 share fiscal The Fraport ended the of€ a price year 2013with 39.1 year ahistorical year-end 2013with level of of16,574points,arise MDAX, share fiscal Fraport isincluded,alsoclosedthe inwhichthe closinglevel highest atthe at 9,552pointsandthus initshistory. The DAXleading index showed growth notable of25.5 shares as financial investments.this market In environment, the German low level ofinterest rate for savings alsoincreased attractiveness the of associated andthe European centralpolicy ofthe andAmerican banks reflectedgenerallythe lower trading volume. share was therefore lessvolatileMDAX ofthe most than and securities in 2013compared to previous the year’s level of156,604shares. The 118,554 shares, trading the volume share Fraport fell of the by 24.3 (previous year: 31 exchange volume share (XETRAtrade), Fraport was the ranked 42 50 MDAX shares (previous year: 12 5.0 billion(previous year: € 42.33. However, related to dueto anduncertainties profit-taking % compared to fiscal the year 2012. %. The Fraport share%. TheFraport therefore developed ataround level the 43.94. Taking into dividendpayment accountthe onJune3, % in the third quarter of2013to € third% inthe quarter 57.41. Itslowest 16 was price recorded onJanuary st place). With anaverage place).With daily trading volume of % compared to previous the year’s closing Group ManagementReport/Economic 4.1 billion)andranked 15 th place).Measured by traded stock % to € 43.73 (– 51.88. Thereasons %, ending the year%, endingthe 46.48 andby 54.39. th amongthe 0.5 %), the %), the 54.39 63 % nd

Consolidated Financial Statements Group Management Report 64 Fraport Annual Report 2013 Group Management Report / Economic Report

Development of the share 2013

Q1 2013 Q2 2013 Q3 2013 Q4 2013 2013 2012

Opening price in € 43.94 43.73 46.48 51.88 43.94 38.00

Closing in € 43.73 46.48 51.88 54.39 54.39 43.94

Change 1) – 0.21 2.75 5.40 2.51 10.45 5.94

Change in % 2) – 0.5 6.3 11.6 4.8 23.8 15.6

Highest price in € (daily closing price) 45.55 47.53 52.40 57.41 57.41 49.37

Lowest price in € (daily closing price) 42.33 43.00 46.19 52.50 42.33 38.41

Average price in € (daily closing prices) 44.13 45.11 49.43 54.60 48.38 44.70

Average trading volume per day (number) 132,650 155,378 96,421 89,318 118,554 156,604

Market capitalization in € million (Quarterly-/annual closing prices) 4,033 4,289 4,788 5,020 5,020 4,052

1) Change including dividend payment: Q2 2013: +€ 4.00, FY 2013: +€ 11.70, FY 2012: +€ 7.19. Table 31 2) Change including dividend payment: Q2 2013: +9.1%, FY 2013: +26.6 %, FY 2012: +18.9 %.

The shares of the European competitors developed in 2013 as fol- lows: Aéroports de Paris +41.3 %, Vienna Airport +41.9 % and +23.4 %.

Development of the Fraport share compared to the market and European competitors in % (index base 100)

150

100

90

January 1, 2013 December 31, 2013

Fraport AG DAX MDAX Aéroports de Paris Vienna Airport Zurich Airport Graphic 33 Source: Bloomberg Source: Bloomberg Fraport AGcapitalstock data and figures key share Fraport January 1,2010 January 100 240 in %(indexbase100) overview amulti-year as competitors European and market the to compared share Fraport the of Development 2) 1) Reuters tickercode Bloomberg tickercode Security identificationnumber(WKN) ISIN The following shows table keythe information about share: Fraport the share Fraport the of overview Multi-year (weighted averageofperiodunderreview) Number offloatingshares Total numberofsharesasatDecember31 Profit earmarkedfordistribution Absolute shareofcapitalstock Number offloatingshares Dividend yieldasatDecember31 Beta relativetotheMDAX (includingdividend) Annual performance Earnings pershare(basic) Earnings pershare(diluted) Price-earnings ratio Dividend pershare Fraport AnnualReport2013 Proposeddividend(2013). Total shares. numbersofsharesasatthebalancesheetdatelesstreasury 60 FraportAG 2) DAX 1) asatDecember31 MDAX 2) January 1,2011 January AéroportsdeParis

per share,€ € million € million number number number % % €

€ €

ViennaAirport

January 1,2012 January 92,212,289 92,173,637 92,289,654 ZurichAirport 922.9 115.4 10.00 2013 1.25 0.80 26.6 2.40 2.39 22.7 2.3

92,134,391 92,012,909 92,211,756 922.1 115.5 10.00 2012 1.25 0.95 18.9 2.59 2.58 17.0 2.8

Group ManagementReport/Economic

January 1,2013 January 91,878,502 91,858,474 91,955,867 919.6 115.4 10.00 – 16.8 2011 1.25 0.88 2.62 2.60 14.5 3.3

DE 0005773303 December 31,2013 91,838,223 91,808,388 91,915,588 Graphic 34 FRAG.DE Table 32 577330 FRA GR 919.2 115.6 10.00 2010 1.25 33.2 0.82 2.86 2.85 16.5 2.7 65

Consolidated Financial Statements Group Management Report 66 Fraport Annual Report 2013 Group Management Report / Economic Report

Development in shareholder structure Dividend for the fiscal year 2013 There were no changes to Fraport AG’s shareholder structure in the (recommendation for the appropriation of profit) past fiscal year. As at December 31, 2013, the shareholder structure The Executive Board intends to recommend the same dividend as adjusted to the current total number of voting rights was as follows: the previous year of € 1.25 per share to the 2014 AGM. Compared to the share closing price in 2013 of €54.39, this would correspond to a dividend yield of 2.3 % (previous year: 2.8 %). The profit earmarked Shareholder structure as at December 31, 2013 1) for this purpose of € 115.4 million (previous year: € 115.5 million) would therefore – in relation to Fraport AG’s result for the year 2013 of in % €1 73.8 million – correspond to a pay-out ratio of 66.4 % (previous year: AVIATION 65.6 %) or – in relation to the Group result attributable to shareholders’ 1 State of Hesse 31.37 of Fraport AG of € 221.0 million – of 52.2 % (previous year: 48.5 %). 1 2 Stadtwerke Frankfurt 6 am Main Holding GmbH 20.03 3 Deutsche Lufthansa AG 8.46 4 Lazard Asset Dividend per share and dividend yield 1) Management LLC 3.16 5 5 RARE Infrastructure in € in % 4 2 Limited 3.06 3 6 Free Float 33.92 1.25 1.25 1.25 1.25 2.7 3.3 2.8 2.3

1) The relative ownership interests were adjusted to the current total Graphic 35 number of shares as at December 31, 2013, and therefore may differ from the figures given at the time of reporting or from the respective shareholders’ own disclosure. Interests below 3 % are classified under “Free Float”.

0 0 As far as was known as at December 31, 2013, the Fraport shares held 2010 2011 2012 2013 in free float were distributed across the following countries: Dividend per share Dividend yield Graphic 37 1) 2013: dividend proposal and thereof resulting yield.

Allocation of free float 1) Investor Relations (IR) in % In the 2013 fiscal year, Fraport’s IR activities again focused on proactive AVIATION communication with investors and analysts. In more than 300 one-on- 1 Australia 18.8 1 ones, the strategy and the current and forecasted business develop- 2 USA 10.3 3 Canada 4.5 ment of the Fraport Group were explained to interested parties. The 2 4 Germany 4.0 focus remained on traffic developments at the Group sites as well as 9 5 Great Britain 3.5 the planning of Terminal 3 at the Frankfurt site. Other focal points 3 6 Norway 1.8 4 were Group capital expenditure, the development of free cash flow, 5 7 Denmark 1.7 the impact on earnings connected to the at equity accounting of the 76 8 8 Finland 1.3 Group company Antalya from the 2014 fiscal year onwards and poten- 9 Countries < 1 % and unknown 54.2 tial acquisition projects in the External Activities & Services segment.

1) Free float without shares of State of Hesse, Stadtwerke Graphic 36 The activities of the IR department in the past fiscal year were rounded Frankfurt am Main Holding GmbH and Deutsche Lufthansa AG. Source: own estimates Fraport AG. off by the AGM, an analyst conference on the publication of preliminary full-year results, three conference calls regarding the additional quarterly publications, the provision of current information on the IR homepage www.meet-ir.com and investor meetings at the Frankfurt site. assess the financial situation in the financialsituationin assess the forecastedstable. as period forecastedincluded inthe TheExecutive period. Board continuesto to predict, material acquisitions anddisposalsof businesses are not afocus with Asthey onearnings. are difficult portfolio existing the Executivethe improve Board remains andto to this further expand are apparent. regard With objective to business,the external the of that mightjeopardize the Groupgoing concern asa risks significant optimization asset of the Group. and financial position of No Fraport The Executive for ongoing Board opportunities continuesto examine to future ininterest changes andcurrency exchange rates. provement despite difficulty in the forecastingthefinancial resultdue GroupFor the result, Executive the Board im- anticipates sustainable results inthe forchange 2014. recognized Group inthe financial result, whichwilllead to asignificant equity method.the Accordingly, company’s this result willonly be offiscal year 2014beaccounted for using Group, start willasofthe Antalya, whichhasuntilnow consolidated inthe beenproportionately to amongothers, Group accountingstandard, the achanged company Executivethe inGroup Board arise EBITDA isexpecting andEBIT. Due to from Group highercontributions the companies LimaandTwin Star, divisions, willalsohave arevenue-increasing due effect. Furthermore, particular, aswell asadditionalrevenue Retail inthe andReal Estate andinfrastructure charges in site, increase Frankfurt the the inairport on Group-wide development passenger forecasted inthe At period. The expected growth economy global ofthe willhave apositive impact General StatementoftheExecutiveBoard Outlook Report sheet date. There were nosignificant the balance events Group the after for Fraport Balance SheetDate Significant Eventsafterthe Fraport AnnualReport2013 Group ManagementReport/SignificantEventsaftertheBalanceSheetDateOutlook 5. 4. 3. 2. 1. The following are principles derived from objective: this municated usingsystematic reporting. and monitored mannerandare inastandardized transparently com- are identified areopportunities at an earlystage, evaluated, controlled and whichguarantees management, risks that andopportunities risks relationship to each other. This is ensured through comprehensive are in anappropriate associated opportunities the with risks the integrated strategy andplanningprocess, itisalways ensured that development context ofthe the within ofFraport, further the With Risk strategy and targets deviation orstrategic target deviation. as future developments orevents canleadto that apositive forecast areoperational regarded planningandstrategic targets. Opportunities ments orevents canhave that anegative achievement impact onthe of asfuture develop Group.jeopardize regards Fraport Fraport the risks - This results in early the identification of potential that could materialrisks using appropriate measures, aswell as,take ofopportunities. advantage andto control risks andlimit those stage, atanearly and analyze risks system, whichmakesand opportunities itpossiblefor to Fraport identify GroupThe Fraport hasacomprehensive, Group-wide management risk Risk andOpportunitiesReport and opportunities management in their area intheir ofactivity. management and opportunities All employees are encouraged to actively becomeinvolved inrisks andopportunities. all material risks as well assystematic take placeregarding andtransparent reporting standardized analysis,fication, centralized control andmonitoring, Through standardized and comprehensive processes, early identi- utilizing opportunities. measures andbeingreduced to level, anacceptable aswell asactively processes; involves this usingappropriate beingmanaged material risks andcentral are unitsthat responsible for business their business, service isakey management respective functionofthe andopportunities Risks process. management opportunities the with this and links development system management risk ofthe andfurther mentation The centralized unitisresponsible RiskManagement for imple- the are that not directlyrisks related businesspurpose. to original the anticipatedthe businessdevelopment. Thisway, avoids Fraport strategy, andrisks opportunities the made with which results from strategic ofthe planningprocesses,Even is acomparison aspart 67

Consolidated Financial Statements Group Management Report 68 Fraport Annual Report 2013 Group Management Report / Outlook Report

Risk managment system

Risk strategy and objectives

Organization of risk management

Risk control and monitoring Risk reporting Risk analysis

> Internal risk reporting > Risk reporting to Supervisory Board/ Risk monitoring finance and audit committee Risk identification > Management report to capital market > Definition of tasks and > Definition of risk areas responsibilities > Risk inventory: bottom-up and top-down > Monitoring by RMC and RMC office process

Risk control Risk evaluation

> Preventative and reactive measures > Evaluation by impact level and Risk aggregation > Cost/benefit analysis probability of occurrence (risk portfolio) > Controlling of measures > Evaluation of scenarios > Qualitative determination of total > Prioritization by material risks risk position (risk map) > Reporting of material risks to Executive Board

Documentation, risk management software

Graphic 38

The Fraport Executive Board bears the overall responsibility for an The risk management system is documented in a policy and closely effective risk management system, through which comprehensive and interlinked with the ICS. It follows the “COSO II” (Committee of the standardized management of all material risks is ensured. In this con- Sponsoring Organizations of the Treadway Commission) framework text, it has approved the risk strategy and risk objectives for the Group. and covers risks in the areas of strategy, operational business, financial The Executive Board appoints the members of the Risk Management reporting and compliance. Committee (RMC), approves the rules of procedure for the RMC and is the addressee for the quarterly reporting of relevance to the Group Process-integrated and process-independent monitoring measures and ad hoc reports in the risk management system. form the elements of the internal monitoring system. The central Group Internal Audit unit is integrated into the internal monitoring system of The RMC is the highest executive body in the risk management system the Fraport Group with process-independent audit activities. below the Executive Board and is made up of Senior Managers from the company’s operating and supporting units. The management of PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesell- the RMC has been transferred to the newly created Risk Management schaft (PwC) has examined the risk early-warning system of Fraport AG and Internal Control System department. The management of the RMC within the context of the annual financial statement audit with regard is responsible for the organization, maintenance and further develop- to stock corporation law requirements. It fulfils all of the legal require- ment of the Group-wide risk management and internal control system ments that apply to such a system. (ICS), as well as the regular updating and implementation of the risk management and ICS policy in the Fraport Group. The RMC reports to The Supervisory Board of Fraport AG has the function of supervising the Executive Board on a quarterly basis immediately after its meetings. the effectiveness of the internal control and risk management system in accordance with Section 107 (3) of the AktG. This responsibility is executed by the finance and audit committee of the Supervisory Board. service and central officers).The units (= risk reference the basisis service by responsible the business, probability ofoccurrence isascertained impact (impact level or – if possible – a quantitative evaluation) and its jeopardize company’s the financial the purpose, For existence. this likely, willmost Group, Fraport orwhichrisks of the dueto nature, their couldjeopardize corporate the objectivesindividual risks andstrategy andmakesrisks itpossible extentfied to estimatethe the to which The systematic evaluation determines identi- extent ofthe the ofrisks 2) Evaluation ofrisks on anadhocbasis. newly beimmediately must reporting, risks identifiedmaterialreported basis.Outsideofregular quarterly onaquarterly System department integrated investments andInternal to Control RiskManagement the divisionsandtheir intheir onallrisks areas risk andreport and manage system. management risk They are obligated monitor to constantly informationthe received from units,whichisprocessed their inthe environment. are DivisionManagers responsible for accuracy the of indicatorsmonitoring risk from regulatory, the economicandpolitical surveys, through information to right aboutsuppliersandinstitutions, from market andcompetition analysis, to evaluation the ofcustomer Groupas the identificationmethods companies. Therisk used range andcentral AG, unitsofFraport aswelloperational business,service are primarily the identifiedusing by instruments Materialvarious risks risks of 1) Identificationand reporting solution. software management risk entire the process, hasintroduced Fraport order anintegrated to support process following management of the iscomprised The risk steps. In Risk management process by AG. Fraport asdetermined cycles andadhocreporting, reporting to samerisk the system management process risk ofthe companies andcommitsthe policy usedfor investments and the organizationalstructure specifies asset, Theseparatethe positionof financialandearnings Fraport. for system management risk in the importance dependingontheir for Group Fraport companies, whichare extent incorporated to avarying system management risk The policyfor Fraport alsoincludesrules the companies Group of management Risk RMC meeting. context ofthe the within quarterly However,opportunities. takes placeconsultation an opportunities So far, system management risk Fraport hasonly the covered not risks, by Assekuranz Group the company Vermittlungs-GmbH. Airport Risk transfer purchase through the ofinsurance policiesiscontrolled Fraport AnnualReport2013

Group-wide. tive as“material” according to systematic evaluation used standards Executivethe Board whenthey are classifiedfrom anetrisk perspec- for situationusinga“RiskMap”. to risk assessingthe are reported Risks divisionsandGroupthe companies andprovides to these RMC the from Internal reports aggregates Control risk the System department Group’s Fraport of the and RiskManagement the situation.For this, risk isintended management toThe risk ensure atransparent presentation and reporting 4) Riskaggregation measures and to evaluate their effectiveness from a Group perspective. officersin risk the orderwith tomonitor the risk-minimizingprogress of closely andInternal works ControlManagement System department to effectiveness the ofpotentialrisk-minimizing measures. The Risk relevant strategy and/ormeasuresinrelation costs alsoconsiders the cies, for The decision regarding of example). the implementation the (through insurance transferalso includethe poli- to ofrisk athird party strategy identified, whichcan and/ormeasures torisks the dealwith a measures officersmust Therisk draft to minimizeandcontrol risk. taskedRisk officers are with developing and implementing suitable 3) Riskcontrol report). 70ofthis on page Executivethe matrix Board aswell reporting RMC (seealsothe asthe to finance andauditcommitee,“material” are the andthese reported probabilityimpact occurrence andthe are oftheir considered to be exceedthresholds defined in relation the potentialto level of(financial) that jeopardize that company the orrisks Risks concern asanongoing of risk-minimizing measures. initiation orimplementation expected residual (financial) impact after toimpact prior risk-minimizing measures. Thenet represents risk the net evaluation. greatest Thegrossisthe risk possiblenegative (financial) ismadebetween isassessed.Adistinction Fraport agross evaluation and evaluationThe risk greatest i.e.,the isconservative, possibleimpact for divided into three “low”, categories: “possible”and“likely”. analysis.in the isalso Theprobability ofoccurrence for individualrisks for Fraport’s are included andwhichalsodetermine reputation risks, the qualitative factors,liquidity). which Furthermore, could beimportant relevant impact the risks the detection variable (EBIT, financial result or “medium” and“high”. Theimpact level isevaluated according to how potential impact (=impact level) isdividedinto three “low”, categories: evaluation long-term the their impact. During ance with process, the monitored inaccordtive; are- inparticular possibleinfrastructural risks perspec- only analyzeresponsible from for ashort-term assessingrisks However,rolling 24-month-period. doesnotpersons this the meanthat Group ManagementReport/Outlook 69

Consolidated Financial Statements Group Management Report 70 Fraport Annual Report 2013 Group Management Report / Outlook Report

In the event of significant changes to previously reported risks or newly Twice a year, the Executive Board reports the “material” risks, including identified “material” risks, reporting also takes place outside of the their changes, in the finance and audit committee of the Supervisory regular quarterly reporting, as ad hoc reporting. Board. The following graphic shows the addressees of the risk reporting depending on the net evaluation of the risks:

Reporting matrix

Likely Strategic business, Finance and audit committee/ Finance and audit committee/ ≥ 50 % service and central units/ Executive Board, Risk Management Executive Board, Risk Management Group companies Committee Committee

Possible Strategic business, Risk Management Committee Finance and audit committee/ ≥ 10 % – 50 % service and central units/ Executive Board, Risk Management Group companies Committee

Low Strategic business, Risk Management Committee Finance and audit committee/ up to 10 % service and central units/ Executive Board, Risk Management Group companies Committee

Probablility of occurrence Low Medium High ≥ €0.5 million ≥ €2.5 million ≥ €10.0 million

Impact level

Graphic 39

This process ensures the early detection of risks that could jeopardize Board and Supervisory Board. The relevant Group companies are the Fraport Group as a going concern. included on the basis of legal requirements, as well as on the basis of qualitative and quantitative risk assessment criteria. An integral component of Fraport’s risk management system is monitor- ing financial risks, whereby the presentation of financial instruments Furthermore, an integrated risk management software has been overall and in particular hedging transactions in accounting, are moni- introduced to record all event-related risks and material process risks. tored and controlled. This process is described in the financial risks This creates more comprehensive transparency regarding the material section (“risk report”). At Fraport, this process represents a subsection risks existing in the Group, and establishes a closed “risk workflow”. of the accounting-related internal control system. For 2014, further developments are also planned in the risk manage- Further development of the risk management system ment area, particularly the conception of a refined Group-wide risk in 2013 catalog, the further development of the risk management and ICS At the beginning of 2013, the existing risk management system was policy and the further development of standardized Group evalua- linked to the internal control system (ICS) and combined with the com- tion methods. pliance management system into an integrated system. Furthermore, a centralized ICS organization was established, the primary tasks of which Accounting-related internal control system in accordance include ensuring standardized methodology and reporting, as well as with Section 315 (2) no. 5 of the HGB Group-wide standardization of the ICS. The central ICS organization With regard to the Group accounting process, Fraport regards the provides support with the implementation of the ICS and determines internal control and risk management system as a process that is annually, within the context of a scope procedure, which Group com- embedded in the Group-wide internal control and risk management panies should be included in a documentation and self-assessment system. Fraport’s Group accounting system covers the processing of process (Control Self-Assessment) regarding the effectiveness of the transactions, records for the documentation of assets and liabilities and main controls and the subsequent annual reporting to the Executive processes for the consolidation of the separate financial statements of cesses inGroup Accounting. operating context ofthe outinthe accountingpro are- carried data, controls, especially regarding completeness reported andquality ofthe SAP the BPCsystem.out within Manualapplication andmonitoring Accounting-related internal controls are, as far as possible, carried administered by Group Accounting. SAP ofaccountsinthe BPCsystem issettions. AGroup chart upand on aregular inaccounting-relevant basisto changes the regula legal - inSAP BPCisadaptedcept. Group reporting by Group Accounting and administered con- by basisofauserauthorization onthe Fraport level onthe authorization consolidated ofthe companies isawarded required andfor information Group foraccruals the notes. tax Access The accountsto beconsolidated are recognized system, inthis asis datedthe Groupstatements and financial parent company, Fraport AG. process betweenreporting consoli- companies includedinthe the The SAP BPCsystem usedfor accounting-related isprimarily the Group completeness. the framework statements within financial ofaninternalstatement of policies are confirmed the consolidatedthe companies includedin by Groupand compliance ofthe relevant accountingprocess the with of trade balancesheet Ito trade balancesheet II.Theeffectiveness the reconciliation consolidatedin the statements perform financial companies included basis ofwhichthe onthe accounting principles, hasdevelopedaccounting policies,Fraport apolicyonIFRSGroup- company AG Fraport isensured. To ensure consistent Group-wide doing, separation onanorganizational andsystem level from parent the company AG Fraport agreements. framework Inso the within ofservice Group outby site ofthe parentFrankfurt iscarried accountants the and preparationstatements of financial for Group companiesthe at respectivelocally atthe bookkeeping companies. Inindividualcases,the accounting andvaluation methods (trade balancesheet II)isdone statements preparedvidual financial inaccordance Group-wide with parent company (trade andsubsidiaries balancesheet I)to indi- the The the reconciliationstatements of local individualfinancial of the Group isgenerally organized accountingatFraport onalocalbasis. ofproperprinciples accounting. guidelinesandthe tion ofassets legal the andliabilitiesisinlinewith to ensurethe that recognition, measurementan effort - and presenta system, designed to which Fraport conform to in “COSO” standards, guarding effectiveness the the Group’s andcompliance of accounting The company processes appliesprinciples, andmeasures aimedatsafe- for disclosures Group the inthe notes andGroup report. management of associated recording companies andthe required ofthe information companies andjointventuresparent/subsidiary andfor inclusion the Fraport AnnualReport2013

centrally. initialconsolidationareduring updated through Group Accounting and liabilities (purchase allocations) uncoveredHidden reserves price allocation). price (e.g., calculation of acquisitionor purchase costs prepared by experts nies are generally value measured basisofanexternal onthe analysis Assets andliabilitiesfrom acquisition orsaleofshares the incompa- outproperly.balances are carried ensure consolidation processes that reconciliation and the of internal Group policies,whichare available to allconsolidated companies, coordination Group the Tax with department. taxes areaccrued calculated andrecognized by Group Accounting in Deferred manualimplementation. system-supported the and after system. helpofthe the consolidationisentered Capital inSAP BPC inequity outmanually are with ofchanges statement mainly carried preparationlosses andthe ofcashflows statement ofthe as the well as in associated eliminationofintercompany companies, the profits and valuation updating of the consolidation, includingthe ofinvestments Prior to consolidating liabilities, internal balances are reconciled. Capital relevant isprocessed SAP inthe BPCsystem. to segment reporting andincomeare consolidatedLiabilities, expenses andinformation in detail. any events balancesheet the date canberecorded these sothat after time.Theconsolidatedgood companies are alsoquestionedabout in order to identifyany issuesrelevant to accountingprocess the in ments, aGroup questionnaire issentto allconsolidated companies to preparation run-up the In the consolidated ofthe state- financial process. reporting completeness deadlinesandthe progress, Group ofthe reporting including deadlinesandresponsibilities. Group Accounting monitors islaid downstatements inascheduledetailing each individual step, Group process Accounting. for The reporting consolidated the financial The consolidatedstatements are financial prepared by Fraport AG consolidatedpanies includedinthe statements. financial accountingissuesorbasicquestions,aswellcomplex asatlocalcom- out byQuality assurance is carried Group Fraport Accounting for Group ManagementReport/Outlook 71

Consolidated Financial Statements Group Management Report 72 Fraport Annual Report 2013 Group Management Report / Outlook Report

The Group notes are prepared by the Group Accounting as part of the Functions in the departments involved in the accounting process Group financial reporting process. Once the Group notes have been are separated on a system, personnel and organizational level. A SAP drawn up, the information given in them is verified by central or local authorization concept is used for issuing and administering access departments, where required. authorization for accounting-related systems.

The central units Finance and Investor Relations, as well as, Corporate The aim of the controls carried out within the framework of account- Compliance, Risk and Values Management are generally responsible ing is to ensure completeness, correctness, existence, ownership for preparing the Group management report. They consolidate the and presentation of the assets and liabilities and items in the income information provided by the relevant departments. Consolidated statement recorded in the accounting process. information is verified by the relevant departments. During the preparation of the financial statements by the Accounting The Group parent company Fraport AG prepares its own individual division, subsequent and mainly manual controls are carried out for financial statements in accordance with German commercial and stock the purpose of ensuring the completeness and correctness of items market regulations. Fraport AG has developed an HGB accounting recognized in the sub-ledgers. Preventative, system-aided controls and policy to ensure that its financial statements are prepared consistently a dual control (four eyes) principle are implemented as subsequent and in accordance with the principles of compliant accounting. controls of closing entries in order to achieve the purposes of the monitoring mentioned. Accounting at the Group parent company Fraport AG is, as far as possible, kept local through sub-ledgers (for creditors, debtors, as- In order to ensure that all financial statements are complete, the Group set accounting, treasury, accounts of local departments). During the parent company Fraport AG has implemented a contract management preparation of financial statements, the Accounting division/Group process that evaluates contracts recognized in the financial state- Accounting creates any closing entries in the general ledger which ments to obtain a complete and correct view of all facts relevant to cannot be entered by local departments. The Accounting division also the accounting process. In addition, the head of Group Accounting performs internal controls in the framework of preparation of financial is a member of the RMC. As a result it is generally ensured, that issues statements for important local accounting processes. identified during the risk management process are assessed for their effect on the financial statements and reported, if applicable. The con- In order to ensure standardized procedures, important operational tract management and risk management processes are both regulated processes of the sub- and general ledgers have been documented in a separate policy. (including policies, process descriptions, manuals and guidelines). The effectiveness and compliance of the sub-ledger processes with the A special process monitors risks associated with the recognition of relevant policies are verified by the responsible departments, which financial instruments in the accounting system, particularly hedging issue an internal declaration of completeness. transactions.

The Group parent company Fraport AG uses the SAP R3 system for The reporting process for the financial statements of the Group parent preparing its accounts. Accounting-related internal controls are car- Fraport AG is laid down in a schedule detailing each individual step, ried out where possible with the help of the SAP R3 system. Manual including deadlines and responsibilities. Group Accounting monitors application and monitoring controls are carried out during the opera- the progress and schedule system-assisted. tional accounting processes in the sub-ledgers and also during the preparation of the financial statements by the Accounting division. The major steps in the reporting process are the closing of the sub- ledgers, which in the case of the receivables accounting process includes the valuation of receivables, i.e., the creation of allowances. In asset accounting, the closed sub-ledger reflects scheduled depre- ciation and impairment losses on property, plant and equipment. The Treasury department is responsible for the operational processes of its own sub-ledger (including cash pooling) for providing the information required for recognizing financial instruments in the general ledger. global economy.global dueto increasingthe the significanceofChinaandIndiain important but hasweakened significantly in recent years, whichisparticularly Economic momentum in emerging comparablyis still countries high economicactivitiesremaintheir burdened by problems. structural of2013,but nations have production start their sincethe expanded financialanddebtcrisis widely. ofthe varies aftermath and the Industrial The development economy global ofthe hasyet momentum, to gather General economic risks Strategic risks directly described, orindirectly. risks the Therefore, segmentsdescribed. ofallthe prised itisalsosubject to AGFraport parent is the company Group Fraport of the and is com- Handling andExternal Activities &Services). extents (Aviation,segments, to Retail varying & Real Ground Estate, described relate risks to all the ing system. specified Unless otherwise, - report whicharecategories, management internal alsousedinthe risk control; however, are classifiedaccordingrisk risks thesame the to they are aggregated more intensively they than are usedfor internal following inthe areFraport explained description, description. Inthis whichcouldhaveThe risks amaterial effectthe businessactivitiesof on Business risks internal controls. processes accountingprocess, ofthe includingaccounting-related regularly assessesmajor sub- The Internal Auditing department and assets. provisions, mainly personnelprovisions aswell asfinancialinstruments preparationof the statements annualfinancial ofthe for evaluating providers framework the within regularly service Fraport uses external manualapplicationandmonitoring controls. performs TheTaxaccruals. calculates incometaxes andposts and department expense andincomefinancial assets equity and andinstruments, trols. Thismainly relates to other provisions andpersonnelprovisions, outsubsequent manualmonitoring con- which alsoincludescarrying closingentries, AGAccounting ofFraport necessary outthe carries Accounting division/Group the sub-ledgers, closingofthe the After Fraport AnnualReport2013

transport. transport. also have an impact supply on anddemand the development of air form inthe ofnew Africa oilandkerosene could rises North price and MiddleEast situationinthe geopolitical An increasingly unstable countermeasures. employee representative bodyinorder to beableto with intervene personnelarea, hasagreementsthe inthe with Fraport Particularly reasonableso that countermeasures canbeintroduced ifrequired. closely monitors development the ofsupply anddemandinairtraffic financial this position and earnings of For reason, Fraport. Fraport ment inairtraffic, which would have anegative theasset,effect on mayThe economicrisks becomemore manifest, develop impairing - business. airport Germany’s economy, export-based whichwould alsoaffect Fraport’s have adampening effectglobal economythe on and, asa result, as well asvarious mediacould emerging discussedinthe countries albeit representsa comparably a risk, lower in China one. The risks even USA outsideofthe inOctoberwhich ledto 2013, uncertainty threat freezes), 2014(politicalstalemate; ofexpenditure inearly again The budget debate regarding USA surfaces debtlimitsinthe that wouldment, includingFraport, alsobeconsiderable. The negative consequences for andregional global airtraffic develop- affectedthis case,which weakened in would growth. result infurther another recession inEurope. economy Theglobal would alsobe slightupwardconsumers couldhaltthe trend inEurope andtrigger orrenewed amongbusinessesor ing countries general uncertainty targetsdeficit and reform measures introduced, turbulencesinemerg- protests reform against measures Euro, and the abandonment of the as aresult ofinsolvency bankingsector, inthe anescalationofpolitical Another flare-upunchanged. the European ofexample debtcrisis, for from economicandfinancialpolicyconditions could arise the remain that “BusinessOutlook”chapterthe risks 84),the beginningonpage Despite positive economicforecasts overall for fiscal year 2014(seealso Group ManagementReport/Outlook 73

Consolidated Financial Statements Group Management Report 74 Fraport Annual Report 2013 Group Management Report / Outlook Report

As an international air traffic hub, Frankfurt Airport benefited in the The amount of transfer traffic also varies depending on the availability past from the fact that airlines tended to return to their local bases and and attractiveness of direct intercontinental flights offered. concentrate their business on hubs in times of crisis. Fraport has been able to at least compensate for the effects of crises in a relatively short Due to the increasing market and competitive pressure, the potential time. However, experiences with the most recent economic crises risk also exists that future capital costs from planned capital expenditure could indicate that it may take increasingly longer to return to a growth may only be capable of being priced into the achievable charges to path. Furthermore, structural changes in business travel (e.g. reduction a limited extent. in the number of business trips) could have a direct or indirect impact on Fraport’s business. Currency rate fluctuations, unemployment and Frankfurt Airport is not only in competition with established European changes in consumer behavior which influence passengers’ shopping competitors. It is also faced increasingly with a continuous stream habits, can also impact the earnings of the Fraport Group, particularly of new competitors. Political and regulatory decisions on regional, in the retail business. The buildings and areas that Fraport currently national and European level have an impact on the market and there- lets are mainly used by airlines or companies whose business largely fore competition in the form of taxes, fees and regulations, such as depends on the development of air traffic at Frankfurt Airport. This sec- aviation tax, EU emissions trading, CO2 regulations, noise protection tor of the real estate business is therefore not directly tied to general requirements and bans on nighttime flights. There is therefore the risk real estate market developments. of airlines using alternative sites and routes outside Frankfurt for the medium-term. Fraport sees more medium-term risks in the form of a Given the difficult situation described, Fraport estimates the potential weaker competitive advantage among European airlines and conse- impact level of the macroeconomic factors as still “high” overall. The quently among European airports. probability that negative macroeconomic developments can have such an impact on Fraport’s asset, financial and earnings position is assessed Moreover, the creation of new or the development of existing hub as being “possible”. systems in the Middle East may lead to a shift in the global flows of transfer passengers. Market, competitive and regulatory risks In addition to an attractive infrastructure, the success of a world air- Fraport counters these risks through continuous market monitoring for port is dependent on its customer structure and the associ- prompt identification of potential changes with negative consequences ated global and dense route network, the fleet structure and the fares for the business, the recruitment of appropriate compensation offers by offered by the airlines. Sales Management but also through a balanced, needs-based expan- sion planning. In view of the dynamic market environment, Fraport The dampened global economic development, high fuel costs and the assesses the potential impact (impact level) of these risks as “high” and increasing competitive pressure in all transport sectors, to which the the probability of occurrence as “possible”. The traffic assumptions European airlines are particularly exposed, have led to consolidations underlying the 2014 Business Plan, with a growth assumption of only and also some insolvencies in the past, which also cannot be ruled 1%, for example, for the passenger traffic, were thus conservative. out in future. Changes to the alliance systems repeatedly modify the customer and supply structure, also associated with the reorientation Fraport has reported continually in recent years that the European of the supply at other airport locations. Ticket price campaigns influ- Commission plans to further liberalize ground handling services ence the flow of transfer passengers. If these special fares were to be and the legislative process. On November 30, 2011, the European limited, passenger traffic would suffer. Commission presented the draft regulation. This was adopted by the European Parliament on April 16, 2013. The draft includes, inter alia, that with a maximum transition period of six years, an additional third-party ground handling company must be approved in the case of airports with more than 15 million passengers. The possibility of awarding sub-contracts for self-handlers is equivalent to unrestricted opening-up of the market and is assessed negatively. Stricter social to ofaffairs. current state the site Frankfurt and intendsthe to itscargo center, expand according main cargo Cargo, customer, asthe Lufthansa hascommitted itselfto reductions incargo traffic. Lufthansa/ the On otherhand,Deutsche cargo in the sector,in particular will weaken, possibility of the with traffic momentumofthe the cannot outthat development, beruled term conditionsfor impact onthe development the site. ofthe It nightflightbanwillhave existing the that There risk isthe along- limited to anannualaverage of133take-offs andlandingsper night. and from movements 5 a. m. to number ofaircraft 6 a. m. the was nightflightban,from the 10p.m. beforeto 11p.m. andafter mediately scheduled flightsbetween 11p.m.and5a. the hoursim- for zoning decisiononMay 29,2012,imposing acomplete banonall policy, responsible HMWVL,asthe zoningauthority, the adapted the ments inseveral test asitobjected cases. Insofar to nightflight the require legal complied with expansion - airport the decision andthus the zoningthat essentially confirmed Administrative HighCourt Federal itsappellate German With 4,2012,the decision,issuedonApril expansion airport the with connection in Risks by authorities. the processis not ofthe currently possibleduetounder way status the An evaluation probability of the of occurrence for risks described the for realization the ofqualified drainage the parallelrunwayfor system. medium-term.the Thenotification any doesnot contain conditions sectionofTake-off northern drainage ofthe the Runway likelyWest in points)wereadditional measuring formulated whichmake inthis, available sinceNovember conditions(for example, 19,2013.Further off Runway Regional Councilhasbeen areaWest fromthe Darmstadt inqualified drainage systems. Anotificationsary regardingthe Take- €300 million(previous year: upto €130million)may becomeneces- results dueto anticipated expenditure ofup official to orders, capital parallelrunway take-off andlanding system, basedoninvestigation In relation to operation the ofTake-off Runway existing, the and West continues to be“likely”. isassessedasbeing“high”adoption regulations andthe risk ofthe safeguard competition. The potential impact (impact level) from this being counteracted by through agreements Fraport concludedto ing measures out.Possible are beingcarried lossesofmarket share are minimization,comprehensiveFor risk lobbying andefficiency-increas - European iscurrentlythe Councilfor with voting.included. Thedraft regulations, requirement such as the to transfer employees, are also Fraport AnnualReport2013

(impact level) would risk ofthe be“high”. as being“low”. However, shouldberealized, impact risk the ifthe Airport ofFrankfurt zoningdecisionregardingof the expansion the Fraport estimates probabilitythe of occurrence of of risk the a rescission evaluationof Raunheim andFlörsheim)the situation, legal ofthe hensive roof reinforcement municipalities inthe program, particularly In view initiated ofthe andupcomingmeasures (for compre example, - wake turbulences). andMay 10,2013(protectioncial property) requirements regarding zoning decisionsdated 30,2013(noiseprotection April for commer to expenditure planning bemadedueto capital supplemental the the due to advancing the buildingandcontract award activity, aswell as has increased to approximately €2,270millionasatDecember31,2013 sofar expansion The total airport volume inthe expenditure ofcapital and noiseresearch. iscommitted Fraport to activeaspects. Furthermore, noiseprotection comprehensively following proceedings, andtechnical the inlegal which are through now counters risks beingcontinued.Fraport these non-test-case decisionsinthe proceedings, outstanding still as the ofHumanRightsaswell European and/orthe ofJustice Court Court complaintsfiled constitutional andpossibleappeals the Europeanto inlight,inter expansion, alia,ofthe to airport the residual risks legal However, itisimpossible to completely exclude possibilityof the recourse test legal inthe meanthat casesisnow concluded. Court The aforementioned by Federal rulings German the Administrative High mum noiselimits)would have to overcome hurdles. highlegal restrictions (for these extended that night flight ban, maxi- example, site.traffic the at structure, However,Frankfurt beconsidered itmust which would have aconsiderable impact ontraffic volume,as wellas weakening couldresult, competitive ofthe Airport positionofFrankfurt politicaldiscussion–werecases inthe implemented into law, afurther operation –demandedinsome ofairport If additionalrestrictions Group ManagementReport/Outlook 75 -

Consolidated Financial Statements Group Management Report 76 Fraport Annual Report 2013 Group Management Report / Outlook Report

Financial risks Credit risks for Fraport stem on the one hand from primary financial “Risk report” according to Section 315 (2) no. 2 instruments. Such risks arise, for example, upon the purchase of securi- of the HGB ties in the framework of asset management and comprise the default With regard to its balance sheet items and planned transactions, Fraport risk of the issuer. On the other hand, credit risks arise in connection is subject in particular to credit risks, interest rate and foreign exchange with derivative financial instruments with a positive fair value and the rate risks and other price risks. Fraport counters interest and foreign current risk that the counterparty will not be able to meet the obliga- exchange rate risks mainly by establishing naturally hedged positions, tions that are advantageous for Fraport. This risk is generally countered in which the values or cash flows of primary financial instruments off- by using financial assets and concluding derivatives only with issuers set each other in their timing and amount and/or by using derivative and counterparties who have an investment-grade rating. Since the financial instruments to hedge the business transactions. The scope, beginning of 2013, investments without ratings have also been possible responsibilities and controls for the use of derivatives are stipulated in individual cases, within narrowly defined limits. If the credit rating in a binding internal policy. The existence of a risk which needs to be is downgraded to non-investment grade during the asset’s holding hedged is the prerequisite for using derivatives. Derivatives are not period or the term of the derivative, a decision is made on a case-by- used for trading or speculative purposes. To monitor the risk posi- case basis on the further progress of the asset or derivative, taking into tions, simulations are regularly carried out by Risk Controlling using account the remaining term. various worst-case and market scenarios. The Chief Financial Officer is regularly informed about the results. The Fraport AG Treasury depart- The issuers’ ratings and those of issues are regularly monitored, as ment is responsible for efficient market risk management. Generally, are the credit default spreads (CDS) of the counterparties. Moreover, only risks which affect the Group’s cash flows are managed. There the upper limits are continually adjusted to the credit-rating develop- can only be open derivative positions in connection with hedging ment and where necessary reduced and financial assets are diversified transactions in which the underlying transaction is cancelled or is not further under risk considerations. In consideration of the previously carried out as planned. described measures, Fraport classifies the potential financial impact (impact level) of credit risks as “low” and their probability of occurrence Interest rate risks arise in particular from the capital requirements as “possible”. associated with capital expenditure and from existing floating inter- est rate financial liabilities and assets. As part of the interest rate risk Other price risks result from the fair value measurement of financial management policy, in order to limit the interest rate risk for the ma- assets. This, however, does not affect cash flows at the time of measure- jority of the debt financing, interest derivatives were concluded and ment. Financial assets with a fixed maturity are assumed to be subject financing was concluded with fixed-interest rate agreements. Following to temporary market fluctuations which reverse automatically by the the commitment to these interest rate hedging positions, there is still end of the products’ maturities, since a repayment in the full nominal the risk that the market interest rate level will decrease and as a result amount is expected. there will be a negative fair value of the interest rate hedging instru- ments or that a negative value will be intensified. These changes can Even without specific measures, Fraport assesses the probability of have an impact on the result, within the income statement, or also on occurrence of other price risks as “low”, and the impact level as “low”. the shareholders’ equity, depending on the classification of the deriva- tive. Fraport assesses the probability of occurrence of the risk as being Regarding further information about the nature of risks arising from “low” and the potential impact (impact level) as “high”. the use of financial instruments and the scope of risks from open risk positions in the context of financial instruments, please see Group Foreign currency risks mainly arise from revenue planned in foreign notes 40 and 47. currencies which is not covered by expenses in matching currencies. Such risks are hedged, to the extent necessary, by entering into cur- Other financial risks rency forward transactions. Due to the hedging that has taken place Risks for Fraport’s asset, financial and earnings position may arise from or is planned, Fraport assesses the probability of occurrence of foreign the current financial market situation and its effects on the overall currency risks as “low” and their possible financial impact (impact economy, particularly on liquidity and future bank lending practices. level) as “medium”. As a countermeasure, Fraport has as part of its “pre-financing” strategy already secured a further portion of the planned borrowing for future capital expenditure through external financing in the last few years, most recently in the second half of 2012. This capital is still available. Fraport is of the opinion that the investments the opinionthat isofthe Fraport were lawfully madeand amount. inunstated counterclaim whichispartially Fraport, against hasraised acontingent complaint andfurthermore ofthe merits the ofarbitrationPhilippines disputes and competency the court ofthe of approximately US-$425millionplus interest. TheRepublic ofthe amount investmentpropriation inthe ofthe project atManilaAirport arbitration proceedings, isclaiming compensation- for Fraport ex the Republic ofGermany Philippines.Inthese Republic ofthe andthe investment(ICSID) basedonthe protection treaty between Federal the before International the Centre for Settlement ofInvestment Disputes proceedings Philippines Republic ofthe the are continuingagainst inpreviousAs hasalready beenreported years, Fraport’s arbitration following. inthe described disputes andlegal inrelation to project material the risks ongoing are statements financial in the the for The year ended December 31, 2002. terminal (NAIA IPT3project) waserate written offcompletely anairport The investment Philippines, to ofthe buildandop- capital inManila,the &Services) Activities External (segment project Manila is assessedasbeing“low”. a compliance violationhaving a“high” potential impact (impact level) implementeddescribed, measures, probability the ofoccurrence of to confidentially andanonymously. Inconsiderationthe previously of whistle-blower systems, whichemployees canturn parties andexternal hasimplemented ICS.Inadditiontoment ofthe Fraport this, various binding for develop allemployees,- further training their andconstant a compliance program, inter is codeofconductthat aliathrough the a Group-wide of compliance implementation organization, andthe working to counter of potential these through establishment the risks, could suffer isactively asset damage. lossesand/or reputational Fraport arethat recognized Fraport by consequence that the with Fraport, laws, corporate internal ofgood guidelinesorstandards governance bodies and/or employees that exists risk the Furthermore, may violate in limitingany resulting risks. affectedthe andare businessunitsaboutchanges actively involved developments, legal of the relevant includingthe caselaw, inform anditsGroup of companies Fraport keep abreast departments Affairs law andemployment TheLegal law are alsoofmaterial importance. related regulations, general provisions the market ofcapital law, cartel regulations ofairtraffic law, planningand environmental law andsafety- could benegatively influenced.Inaddition the industry-specific to futureamendments, through whichthe businesssuccessofFraport national and international laws ous and regulations, as well as their As aGroup operates that internationally, issubjectto Fraport numer risks compliance and risks Legal Fraport AnnualReport2013 -

should berealized, impact would their be“material”. Manilathe investment are currently not assessable. However, if risks the regarding sofar described The probabilities risks ofoccurrence ofthe are allegations false. these opinionthat ofthe isstill Fraport proceedings, madeinthe toallegations extent they the are known, ings to seizeFraport’s assets reference Philippines.With inthe to the basisfor asthe caseofconviction,and could,inthe proceed- serve ofFraport’s legality put the investment Philippinesinquestion inthe provided to affected persons.Theoutcome these proceedings of could took placeinSeptember 2013.Declarations ofexemption were then “Anti-Dummyviolation ofthe Law”. Thecorresponding arraignment Grouppersons associated Fraport in2011dueto the with asuspected ment ordered ofJustice various suitagainst anarraignment inthe inprevious- As hasalready beenreported years, PhilippineDepart the claimsasserted. pursued the whether resolutions these are valid. legally PIATCO has not further company. Moreover, allegations. deniesthese Fraport itisdisputed and itsdirectors for improperthe alleged action against and harmful pointed –resolved to prepare acomplaint Fraport for against damages Fraport’s– against votes PIATCO ofthe andthose directors itap- shareholdersAt beginningof2003,the anddirectors the ofPIATCO compensation alsoaffects asashareholder inPIATCO.Fraport proceedings expropriation regardingdecision inthe payment the of related inthe mediationproceedings. However,party aconclusive proceedings expropriation in the nor a results. is not Fraport a party proceedings expropriation hasnot ofthe yetparties ledto tangible outbetween Mediationproceedings carried Supremethe Court. yet bindingandwas legally appealsbefore contested with by allparties July 31, 2013) shouldamountto US-$371.4 million. Thisdecision is not ofTerminalexpropriation 3inManila(includinginterest by accrued from full compensation the due toAugust 2013 that PIATCO for the onOctober itsdecision 29,2013andconfirmed appeal ofallparties of Appeals rejected the terminal, Court of the the expropriation the Philippine International AirTerminals Co.,Inc.(PIATCO) in2004for proceedingsIn the initiated by Philippinegovernment the against disputes before ICSID. the represented by two renowned law in investmentexperienced firms ceedings remains to beseen.To protect itsown interests, is Fraport Fraport’scourt, claimsandcounterclaims. Theoutcome pro ofthe - in Washington arbitrationD.C., of jurisdiction the which dealtthe with the process of took placeinSeptemberstage first ceedings ofthe 2013 Philippine governmentdemands of the the are unfounded. The oral pro- Group ManagementReport/Outlook 77

Consolidated Financial Statements Group Management Report 78 Fraport Annual Report 2013 Group Management Report / Outlook Report

As reported, one Philippine law firm as well as one former Philippine Operating risks minister filed claims for damages against Fraport, two former board Risks from capital expenditure projects members and two Philippine attorneys of Fraport for alleged defama- Fraport AG’s capital expenditure plan covers a period of ten years and tion for PHP 100 million (around €1.6 million) each. Accordingly, is subject to various risks. Increases in construction costs, suppliers motions to seize Fraport assets on the Philippines were initially granted. going out of business, changes in planning figures, or weather-related To avoid the seizures, Fraport, as reported earlier, deposited guaran- delays could all lead to extra costs. These risks are assessed by means tees as collateral, whereupon the responsible courts revoked these. of the clustering and weighting of the individual construction invest- Furthermore, exemption declarations were issued to the Philippine ments in three phases. In this respect, Fraport differentiates between lawyers. In order to cover the existing risk, a provision in the amount of projects in conception (requested), projects in planning and projects €3.5 million was already formed in 2005. The main suits are still pending, in implementation. A Fraport-specific percentage that represents the but in the meantime the claim in one of the two suits has been rejected risk assessment is applied to the construction investments as divided in without possibility of appeal to the extent it was directed against the this manner. Project-specific monitoring measures are implemented so Philippine lawyers of Fraport. These complaints against Fraport were that these potential risks can be confronted appropriately, thus assur- rejected as well. The plaintiffs have filed appeals against these rulings, ing that cost-reducing countermeasures can be introduced early on. which have not yet been decided. In the same matter, the plaintiffs filed a complaint leading to public charges in three proceedings. The Fraport estimates the potential damage at around €300 million and, court has already rejected the charges in all three proceedings, in two taking the project-related monitoring measures into account, the of the three cases in the court of appeal. In all the cases, appeals are probability of the risk materializing as “possible”. pending at various levels in which no final decisions have been made to date. A fourth suit is still in preliminary proceedings. Fraport rejects Risks attributable to investments and projects these allegations. The probabilities of occurrence of the risk described Investment companies and airport operating projects, like Fraport AG at is currently not assessable. the Frankfurt site itself, are subject to general economic and company- specific risks as well as industry-specific market risks. In addition, there All of the legal risks described are counteracted by Fraport appointing are general political risks at individual locations abroad. experienced law firms with its representation. In principle, Fraport‘s investments outside of the Frankfurt site can Other legal risks be distinguished from one another as capital-intensive expenditure, There is the risk of back tax payments in connection with tax audits such as the acquisition of long-term concessions or the acquisition of that are still to be carried out. The probabilities of occurrence of such shares in airports, or in business models with no capital investment potential back tax payments are currently not assessable. or only a small amount, such as the conclusion of service contracts (management contracts). Fraport is also active in countries, such as China and Russia, which can basically hold higher risks for investors than is the case for capital expenditure in Germany. These risks typi- cally include country, market and foreign exchange risks, which can lead to a significant impairment of the future earnings outlook, right up to a total loss of the investment.

For reasons of bidding strategy, as well as risk minimization, Fraport often works in cooperation with a local partner who has experience with the relevant typical national regulations and customs. Within the context of major capital expenditure, Fraport aims for project financing that allows no recourse or only limited recourse to Fraport AG as the capital provider. This type of project financing, which are also referred to as non-recourse or limited-recourse, are used here for risk reduction. holiday destinations in the Mediterranean or the Canary Islands. holiday Mediterranean inthe destinations Canary orthe a result, Turkey has already competitor become a serious to traditional high-quality hotel ratio. As atanattractive facilities price-performance reflectedrecent years. in a relatively This is particularly high share of tourism sector,is the in whichhascontinuously beenexpanded Turkish partner. mainfoundations Oneofthe Turkish ofthe economy inAntalya inTurkey, operatesFraport airport the incooperation a with projects. expansion of the optimization acost approachis establishing for implementation the level. In order to of LAP management adequately the counter risk, the “likely”, would occurs,this ifthis result inasuspected “high” impact timetable canbeclassifiedas and/orthe costs regarding expansion the associated Whilethe deviations relocating amainroad uncertain. isstill timetable for the Furthermore, groundthe quality holdspossiblerisks. handover the oflandby government the airport: pansion ofthe and - regarding currently plannedex exist the various risks (LAP), Partners JorgeFor Chávez the inLima,Peru, operated by Airport LimaAirport schedule, may alsoimplicitly occurfrom this. adheresinfrastructure, to whichasarule acontractually stipulated suchasdelays ofairport risks, construction the inconnectionwith Additional operators canalsocauserisks. detriment airport ofthe to the andlevy airports fare, ofthe tax inthe structure interventions to projectalso resultUnforeseen in“material”financing. risks official companies, which developmentcould earnings the of concessionary or downturn inairtraffic could havenegative asignificant effecton tion offuture development ofairtraffic. Apossiblelackof growth and/ - estima are the in connection with generally long-term,primarily arise operating projects, which airport existing the inconnectionwith Risks RussiaandTurkey. for with example, subject to uncertainties, economy casefor isthe than Central Europe, even iscurrently ifthis active show asignificantlystronger long-termgrowth forecast their for Overall, is ing positive inwhichFraport countries the performance. term growth investments, these with incontinu- inorder to participate fluctuations can occur at any time. Therefore, relies on long- Fraport in emerging and/or countries, politicaleconomic Particularly instability protection insurance, wherever possibleandeconomically meaningful. usesinvestment Fraport Inorder to risks, risk. minimizethese a default ject company andshareholder loansgranted by to are Fraport exposed relevant ofthe equity capital subscribed the this, proNotwithstanding - Fraport AnnualReport2013 the contractorthe canbeinitiated to detriment AG. the ofFraport relevantend ofthe contractual term, aclaimundersuchcollateral by respective ofthe untilthe stances that project possibilityexists –the regular circum basis,where dependingonthe possible.Nevertheless, - provided ona to service arethe obligations reduced inproportion potential minimization,these can beclaimedupon.For risk payment ofcontractually guarantees these owed or non-performance services, guarantees event Inthe for operated ofpoorperformance airports. aviation guarantees from AG authorities, Fraport exist andrespectively, companies and various principals, such operators as foreign and airport contracts between basisofexisting On the AG, Fraport Group Fraport ofAntalya Airport. business performance which would, imply inturn, “medium” negative consequences for the suchanescalationcouldinfluence it appears“possible”that tourism, tourism. Nevertheless, developmentimpact onthe country‘s ofthe politicalunrest northe inTurkeyAfrica, have hadanoticeable negative of Turkey. Sofar, orinNorth the MiddleEast conflictsin the neither extent there continuesto bealatent ofterrorist activityinallparts risk remain at ahighlevel. measuresrity country throughoutTo the this and Ankara)the borderand conflicts in area Iraq with secu- and Syria, urbancenters (mainlyand politicalunrestpast inthe inthe ofIstanbul andpoliceestablishments military against In view ofterrorist attacks the workingthe environment onalllevels. to improve insightsandopportunities provide important with Fraport two years workforce. inallGroup companiesa substantial with They in-depth employeeFurthermore, surveys are conducted oneor every and minimization of workplayrole. and health risks an important the trainingthe the managers field, to andsensitizationof reduction compatibility ofworkgood life. and family work Inthe satisfaction of employees company‘s inthe successandconcrete measures for offersFraport attractive company thematerial benefits, participation ments atFraport’s foreign sites are offered.the commitmentfield, In andmedium-term assign- traineemanagers, programs andshort- specific and universal qualification programs forits employees and qualificationcommitment andwork field,airport- Inthe satisfaction. adequately, hastaken Fraport measures fieldsof qualification, inthe as well as retaining employees. existing In order to risk this deal with site. Thisrelates to acquisition ofnew the professionals andmanagers, Frankfurt atthe high quality professionals particularly andmanagers, willintensify competition the for current demographic the shift that create and sustainable attractive jobs at all Group sites. Fraport is aware intendsFraport to growth continueutilizingthe airtraffic inglobal to Personnel risks Group ManagementReport/Outlook 79

Consolidated Financial Statements Group Management Report 80 Fraport Annual Report 2013 Group Management Report / Outlook Report

On the basis of the initiated measures, the potential impact (impact Risks of unusual disruptions level) of the risk is assessed as “low” and the probability of occurrence Operations in Frankfurt and other Group airports may be impaired as “possible”. by local events such as accidents, terrorist attacks, fires or technical malfunctions, as well as events that influence the operation of national As a result of the change to the German Temporary Employment Act as and international air traffic (such as natural disasters, extreme weather of December 1, 2011 and the case law that has been cited in the mean- events, armed conflicts and epidemics). time, within the context of assigning employees through temporary employment, the risk now exists that the number of employees to be Fraport has taken a series of measures in order to minimize or counteract used in future must be reduced. Furthermore, the coalition agreement such negative effects. In order to protect the IT infrastructure and the at the federal level includes the plan to limit temporary employment critical operating systems from significant negative effects, Fraport and contracts to a maximum of 18 months in future, in relation to the the other Group airports have developed plans for maintaining critical function, as well as the person performing temporary employment. business and operating processes (business continuity and emergency Therefore, the risk exists for Fraport that the use of personnel through teams), as well as the restoration of the IT services. Furthermore, a temporary employment contracts may not be admissible in some central crisis team is established in Frankfurt which coordinates all of cases in future, compared to the current situation. Without alterna- the necessary processes airport-wide in the event of emergencies. In tive solutions, the required scope of work would need to be covered order to verify the adequacy of these plans and to continuously improve with Fraport‘s own personnel, which would lead to additional costs them, malfunction scenarios are set up and exercises are carried out estimated at €16 million to €18 million per annum on a Group-wide on a regular basis. basis. In view of this situation, it is now already being investigated whether adequate options can be found for an alternative structure. In addition to these preventative measures, Fraport AG‘s insurance The advantages and disadvantages of possible structuring options protection covers the risks that are usually insurable with airport com- are currently being examined and considered. On the basis of the panies. It particularly includes loss events that result from the loss of or initiated measures, Fraport assesses the probability of occurrence of damage to assets, including resulting business interruptions, as well as this risk as “possible”. the statutory liability of Fraport AG from all business capacities, legal situations and activities in relation to operating Frankfurt Airport, as well Fraport AG has insured its employees for purposes of granting a as all additional risks that are conventional or necessary in the business company pension under the statutory insurance scheme based on or industry, as well as in the operation. Insurance protection regularly a collective bargaining agreement with the Zusatzversorgungskasse also covers the risks from terrorism regarding property and third-party (top-up provision insurance scheme) in Wiesbaden (ZVK). As with liability. Fraport AG and the domestic Group companies in which an the statutory insurance scheme, this is currently structured as a soli- interest of at least 50% is held are covered against risks of environmental darity model. In view of the demographic change, the ZVK has the damage from accidents, for statutory and public-law claims. problem that the current levies for financing the benefits are not suf- ficient. Therefore, a so-called “restructuring fee” is now already being Foreign Group companies generally cover the aforementioned risks collected in addition to the levies. Furthermore, the ZVK‘s solidarity using separate local insurance policies. model provides for personnel who leave to be replaced by new levy payers. If the requirement for work performance declines, in addition In spite of possible insurance protection, if one of the described risks to the demographic development, the number of employees for whom should occur, this can have a “high” financial impact (impact level), levies and restructuring charges are paid will fall. Because of this, the depending on the seriousness. This assessment takes account of the coverage gap grows continuously in the company pension plan. far-reaching consequences for the Fraport business, for example, from Therefore, it cannot be ruled out that the ZVK could charge further natural disasters or terrorist attacks. As unusual disruptions tend to be compensation amounts in order to cover the compensation coverage rare, Fraport assesses the probability of occurrence as “low”. gap. In order to counter this risk of financing capability of the company pension plan, alternative solutions are being sought – also in discus- sions with the ZVK – regarding how to switch the current structure of the company pension plan to a capital-covered model at an accept- able cost. In view of the high complexity of the issue and unclarified legal questions, a precise assessment of the potential financial impact (impact level) is not currently possible; the probability of occurrence is assessed as “possible”. focused on. for Group the are whichare ofstrategic importance opportunities relate to current fiscal the year,the medium-term inplanningprocess, mainly that result monitoring isaimedatopportunities short-term annualrevolvingand the medium-term planningprocess. Whilethe year,the company‘s context ofthe the within operational management Group unitsthroughout operating supporting units/segmentsandthe takes place The identificationand the recordingby ofopportunities business,aswellassessed for existing asfrom new businessfields. are shouldbe taken andleadto commercial success.Opportunities and initiating appropriate measuressible stage opportunities so that pos- earliest atthe aim ofidentifyingandevaluating opportunities system management Group Fraport hasthe ofthe The opportunities The opportunities management system Opportunities report rence is“low”. several hoursare assessedas “medium”probability andthe ofoccur introduced, potential the effects (impact level) ofanITfailure lasting tional processes. Dueto preventative the andproactive measures toIT systems all of Fraport’s are highly important business and opera- policies, where iseconomically meaningful. this occurarefailures that additionally covered by specificITinsurance protection regulations from isensured. Inadditionto residual this, risks guidelines ismonitored regularly. data compliance with Furthermore, befollowedwhich must Group. throughout the these Compliance with guidelines policyandsecurity arethe ITsecurity IT security specifiedin IT systemsbusiness-critical availability. and their The requirements for preventative focuses onthe whichparticularly management, ITsecurity for ITsystems. active takes situationwith Fraport accountofthis and potential thererisk growing isanunderlying threat ofcyberattacks, developmentDue to ongoing the ofnew technologies andthe to nature. their and operationcannot ITfacilities ofthe becompletely outdue ruled resulting from architecturetions. Thepossibilityofresidual the risks configured redundantly andare optionally housedatseparate loca- to company the ITsystems are Allofthe data. importance ofcritical failure andultimately and/orconfidential to lossofbusiness-critical the by andhackers viruses addition to couldleadto attacks this, system In risks. couldleadto businessdisruptionsandsecurity serious of data IT systems and IT components. system A serious failure or material loss businessandoperating processes require important All ofFraport‘s risks IT Fraport AnnualReport2013 -

the opportunities described, directly described, orindirectly. opportunities the segments.Therefore, described ofallthe prised itisalsosubjectto AGFraport parent is the company Group Fraport of the and is com- Handling andExternal Activities &Services). extents (Aviation,segments, to Retail varying & Real Ground Estate, described relate to all the opportunities specified Unless otherwise, outlook andmedium-term prospects for Fraport. developments orevents canleadto that apositive deviation from the Therefore,term outlook. following the sectionconcentrates onfuture 2014forecastbeen includedinthe andrespectively, medium- inthe willoccur,Where itislikely opportunities the have that these already opportunities. and shareholders by analyzing andusingnew market potential and where itsaimisto increase addedvalueties andrisks, the for customers basically aimsforFraport abalancedrelationship between- opportuni new businessideasare sought. andtargeted creative employees, with Airport workshops inwhich innovation whichawards prize, innovative particularly ideasatFrankfurt tional Group program, “FRAnk” ideasmanagement includethe these employees the that opportunities develop. Inadditionto tradi the - entire workforce. avariety aimsto With Fraport identify ofinstruments, ofthe Group‘sand the expertise central alsousesthe units,Fraport by management businessunits the In additionto opportunities the to operate to these create value over long-term. the in order companyexpertise ideas inwhichthe sufficient canestablish invests Fraport operations. Furthermore, in business fields and business ofits value-creating the expand that are businessfields already part develop inparticular. aimsto and Fraport further operation ofairports industry,the whichhave ingeneral andthe animpact onairtransport andtenants passengers –aswellas airlines, asinbusinessesoutsideof monitors identifiabletrends the atitscompetitors, customers –such Fraport successfactors industry. critical ofthe Furthermore, and the drivers cost the portfolio, product ofthe andservice orientation the competitive analysis, aswell asenvironmental anddealswith scenarios planningprocess, assessesmarket context ofthe the Fraport Within and able to achieve moderate growth inboth years. economy German the this, remained comparatively robust andwas Euroin the zoneeconomy years inthe 2012and2013.Incontrast to declining and resultedworldwide in arecessionair cargo transport alsogrowth economy global momentumofthe andparticularly European summerof2011,has the led toSince early debt crisis the Overall economic opportunities Group ManagementReport/Outlook 81

Consolidated Financial Statements Group Management Report 82 Fraport Annual Report 2013 Group Management Report / Outlook Report

The debt crisis led to a considerable slow-down in demand for trans- As an internationally operating airport operator that is represented in port. The airlines, which were strongly impacted by this in some cases, virtually all parts of the world, Fraport can take advantage of this region- reacted to the excess capacities and financial imbalance with consolida- ally varied growth potentials through investments and management tion measures, which led, inter alia, to a significant reduction of services agreements. Also in future, Fraport will continue to expand selectively and lower volumes at the airports in general, as well as in Frankfurt. and on a success-orientated basis in international business. Certain signs of saturation in the demand for air transport in western countries, Experience with the growth cycles has shown that market turbulences which also affect the Frankfurt site, can be compensated with this. can generally only interrupt the upward development of world air traffic temporarily. The possibility of a degree of dragging out of the Opportunities in corporate strategy volume expectations cannot be ruled out, however catch-up effects Through the completion of Runway Northwest and Pier A-Plus, Fraport after times of crisis can also not be ruled out. was able to significantly increase the airside as well as landside capaci- ties at the Frankfurt site in the past two years and thus create the basis The forecasted, economic momentum, which is picking up again (see for a dynamic development of passenger volume. Fraport is therefore also the chapter “Business Outlook”, beginning on page 84) could – able to handle traffic volumes that go beyond the traffic forecasts used in conjunction with an improved financial situation of the established as the short-term planning basis. Frankfurt Airport is thus one of the airlines – end the consolidation in the airline industry more quickly, few large European passenger airports that has sufficient infrastructure stop route reductions, create new airline services and exceed the capacities over the longer term and can possibly make use of capac- traffic forecasts that still tend to be conservative. The ACI forecast for ity bottlenecks of other airports to its advantage at appropriate good 2014 from June 2013 is at 2.4% for all European airports and at 4.5% market development. worldwide. Fraport has deliberately estimated the business planning conservatively with passenger growth of 1% for the Frankfurt site, With the far-advanced planning for Terminal 3, Fraport also has the but is currently assuming a volume increase in 2014 within a range possibility of providing additional capacities for passenger traffic in of 2% to 3%. the foreseeable future. On the basis of the zoning decision, a building application has already been submitted for the first construction level of Largely independent of the current dampened economic situation, the Terminal 3. This will be realized on the basis of the traffic development, international integration of the globalized world economy continues so that Fraport has the opportunity to provide sufficient capacity at to increase. There is no foreseeable change in the trend of purchasing, the appropriate time. The inauguration of Terminal 3 is not presently production and sales being distributed across the entire globe. Global planned within the medium-term planning period. air traffic provides the key infrastructure required for continuing the internationalization process. This trend is supported by development The discontinuation of the regulatory measures that distorted com- in various developing and emerging countries with lasting, favorable petition, such as the aviation tax and a competition-neutral approach, growth potential. The rise in the standard of living in these countries is such as with the CO2 regulation or emissions trading, can result in key to the disproportionately high growth of air travel, not least because increased traffic. ground-side transport infrastructure is often underdeveloped in these areas. Compared to Central Europe and North America, economic de- On top of that, Fraport has identified the following significant growth velopment in these countries was far less impacted by the last financial engines for the future: and economic crises and the current debt crisis. Airport retail Extending and modernizing the retail, food and beverage and service areas in the terminals, in particular on the airside, continue to be central elements for increasing retail revenue. With the opening of 12,000m² of retail space in Pier A-Plus, Fraport created an essential foundation in 2012 for further retail growth at Frankfurt Airport. The focus in addition lies on the development and implementation of sales- promoting measures for the passengers who have an extraordinarily high purchasing power. In view of this, Fraport is intensively examining the buying behavior of passengers, in order to increase the revenue ings potential over andabove planning. the continuous process, itshouldbepossibleto achieve- additionalearn are initiated to identifiedoptimization usethe potential. Throughthis morestructured effectively andefficiently. Inindividualcases, projects tinuously investigating organization to the determine how itcanbe corporateutilized. Thefunctionsofgood includecon- management Group the are within optimization structures cost not ofthe yet fully return. view holdsthe capital possibilitiesfor Fraport the that further and profitability for stable ensuring control are ofessentialimportance A continuousoptimization ofkey cost businessprocesses andconstant process-related improvements Opportunities in conjunction with organizational and services. cityandisavailable for airport context ofthe airport-affiliated the within hasanadditionalarea,ber 31,2013,Fraport which canbedeveloped Through complete the site asatDecem- Ticona acquisition ofthe realof the estate. development inthe if andto Group whatextent the willparticipate project, decides Fraport site. particular Frankfurt Dependingonthe toSouth meet highdemandfor the spaceatthe additionallogistics Gateway Gardens). Another project involves ofCargoCity anexpansion Mönchhofsite (suchasthe in direct or proximity to Airport Frankfurt is intensively developing andmarketing attractive commercial space for considering real development. estate are worth Fraport For instance, andidentifiedsitesthat recognized trendFraport this stage atanearly are developing cities. Around world, the hubairports into airport city Airport offer adequate security theinvestment.for in attractive tenders whichmeet internal the return requirements and projects market. placed on the Also in future, will submit bids Fraport themselves anddevelopment onaregular basis,through new airports businesspresent external for the expanding business. Opportunities clearobjective Inaddition,Fraport‘s external isto the expand portfolio. years investment next set inthe existing inthe to continueto perform business tobution of external overall the Group profitthe is of Fraport through management contractsThe profit in contri numerous airports. or minority-owned with The Group airports rounds out its portfolio Group holdsaninterest companies inwhichFraport 50%. ofatleast are operated through ormanaged airports to four Frankfurt, further Fraport’s know-how is now represented on four continents. In addition businessExternal for company. the new businessopportunities monitoring general trends retail inthe sector, inorder to derive future overper passenger andabove planningestimates. isalso the Fraport Fraport AnnualReport2013 -

of socialandregional policy. Group ofthe interms Group,model inthe aswell importance asthe is to ofanintegrated take specificchallenges accountofthe business setting additional impulses fiscal herepast the during year. The aim future development. Therefore, hasfocused Fraport specifically on process-related improvements asbeingmaterial for company’s the Overall, regards Fraport potential the organizational impact and ofthe positive corporate impact onthe result quality delivered. andthe on a regular potential, basis and leverage which will have further a Therefore, alsoaimsto Fraport review processes junctures the atthese Group,the butalsoincooperation customers with andsuppliers. for improvingOpportunities processes the not only result from within Fraport regardsFraport itas“possible”to profit from it. volatility financialmarkets ofthe exchangethe and rate developments, financialmarketsthe couldhave amaterial impact andinviewthe of result. Overall, view on holdsthe changes Fraport advantageous that Group,the €,can have the apositive impactGroup’s on the financial of results are that not denominated in€,into functionalcurrency of the Exchange rate effectstify andutilizeopportunities. fromthe conversion developmentmonitoring the financialmarkets onthe inorder to iden- Group’simpact onthe is financial result. The Financing department Favorable exchange rate andinterest developments canhave apositive markets financial the on changes Favorable Financial opportunities to Group. the that presentthemselves effectively pursueandutilize opportunities future businessdevelopment resources andprovides to necessary the Group‘sbe optimistic the strength financial that asolidbasis forms for anticipated businessdevelopment. TheExecutive Board continues to impact, aswell asinviewbalancesheet and stable structure ofthe consideration respective financial ofoccurrence oftheir andtheir risks entirety,their mightjeopardize that company the in concern asagoing before described areBoard, not risks the ofanature, individually orin regulartext ofthe Executive planningprocesses. opinionofthe Inthe con- are the discussedwithin andopportunities risks the Furthermore, analysis risk process. quarterly context ofthe the within are reported by variousreported the company unitsandGroup companies, which andopportunities consolidatesFraport andaggregates risks allofthe management company the by risks and opportunities the of assessment Overall Group ManagementReport/Outlook 83

Consolidated Financial Statements Group Management Report 84 Fraport Annual Report 2013 Group Management Report / Outlook Report

In comparison to the previous year, the estimate of probability of Risks and opportunities that do not form part of the business out- occurrence and/or financial impact of individual risk classes has not look and may lead to significant negative or positive changes to the changed significantly. This is also reflected in the negligible percentage forecasted development can be found in the chapter titled “Risk and change of the risks classified as being “material” or “moderate” in the Opportunities Report” starting on page 67. risk matrix. In relation to the total number of all identified risks, the risks at the “material” risk level were at 20.7 % at year-end (previous year: Forecasted situation of the Group for 2014 23.8 %), the risks of the “moderate” risk level were at 17.1 % (previous Development of Group structure year: 21.1 %). The Executive Board is convinced that the change of the Compared with the 2013 fiscal year, the Executive Board does not individual risks has no significant impact on the overall risk profile of expect any fundamental changes to the legal and organizational Fraport, which essentially remains unchanged in comparison to the Group structure in 2014. Furthermore, the Executive Board expects previous year. the competitive situation at the key Group sites to remain unchanged in comparison with 2013. Efforts will still be made to expand the external business with new airport investments. These will generally Business Outlook be acquired as part of a public tender procedure and cannot therefore be forecasted. Similarly, the disposals of companies are just as difficult Information about reporting to predict and thus do not form part of the forecast. The business outlook is based on the assumption that the international economy and air traffic will not be impaired by external shocks such as Development of Group control terrorist attacks, wars, epidemics, natural catastrophes, or additional Compared with the 2013 fiscal year, the Executive Board does not turbulences on the financial markets. expect any fundamental changes in 2014 to the financial and non- financial performance indicators, which are used for Group control and Moreover, statements concerning the anticipated asset, financial and derived from the Group strategy. Furthermore, the Executive Board earnings position reflect the accounting standards to be applied in the does not expect any fundamental changes to the Group strategy and EU at the start of the 2014 fiscal year. Deviations from the standards the strategic focus of finance management in 2014. used in the 2013 fiscal year arise as a result of the first-time application of IFRS 11 “Joint arrangements”, which stipulates that joint ventures that Forecasted economic and industry-specific have until now been proportionately consolidated in the consolidated conditions for 2014 financial statements must be valued and consolidated using the equity Development of economic conditions method as of January 1, 2014. For Fraport, this has a particular impact Based on the improved economic development during 2013, financial on the Group companies Antalya as well as N*ICE Aircraft Services & institutions and leading economic institutes expect the global economy Support GmbH, Medical Airport Service GmbH and AirIT Systems to expand further in the 2014 fiscal year. With growth of 3.4 % to GmbH. An overview of all joint ventures that were proportionately 3.8 %, the pace of the global economic development is forecasted to included in the consolidated financial statements of the 2013 fiscal exceed the level of 2013 significantly (2013 figure: about 3 %). Global year can be found in the Group notes to this report in Group note 55. trade will rise by around 4.5 % in 2014, according to current forecasts. Overall, inflation is expected to be moderate. With regard to the € to To compare the 2014 forecasted asset, financial and earnings position US-$ exchange rate, it is presumed that the € in 2014 will on average with the figures in the 2013 financial statements, Fraport has prepared remain broadly unchanged with a value of US-$1.34. “pro forma” figures which adjust the 2013 financial statements to the new accounting standard. A reconciliation of the 2013 figures For 2014, relatively stable global oil prices at an average of US-$105 is provided before the respective chapters of the business outlook. to 110 per barrel are expected, which is a forecast at the level of the last three years. On the one hand, the oil production boom in the USA will put pressure on prices. On the other hand, due to the economic momentum, a rise in demand for raw materials is also anticipated. Fraport Group 2014fiscal Fraport inthe year. the a significantimpact on forecasted businessdevelopment the for projects SES II+ program. the with The resulting do not changes have forandbetterprinciples harmonization the legislative meshing ofthe system canbecreated, European the Commission plansto create new conditions buildononeanother andafunctioningEuropean airtraffic byor replaced unified EU legislation. in part To ensure generalthat legal shallbesupplemented andairtrafficmanagement controlling services airtraffic regardtions with to operation the andlicensingofairports, European Single the Sky(SES)program, nationallegislationandregula- aspectof realize andthus inallEUmemberstates apartial standards Inorder tofor guarantee allEuropean airports. uniformly highsafety licensingauthorities is responsible ofthe for safety the supervision Europeanthe Aviation Safety (EASA). Agency From EASA 2014,the was transferred of airports foundationtolegal for certification the control. Based on this resolution, competencethe to develop the movements/air andaircraft traffic itsinfluenceonairports expanding In September European 2009,the Commissionadopted aresolution 2014fiscal in the year: The following environment to legal changes the willcomeinto effect Development of the legal environment 2014),WorldDekaBank (January 2014). Bank(January IMF (October2013),OECD(NovemberDeutscheBankResearch 2014), (January Sources: Consensus of the leading German economic research institutions (October 2013), 2.5 improving real-estate sector, positive economicdevelopment (about Regionally, dueto alower debtburden onprivate householdsandan +5.5 interest 50 ofatleast hasan inwhichFraport Group with For airports countries countries. countries are again expected to significantlyexceed those for industrial growththe consolidationofpublicfinances, the rates for emerging is anticipated inJapandueto lower and economicpolicystimulus private consumption. While a slight decline in economic momentum volume ofinvestments. Positive continuesto stimulus beexpected from improvingdemand, the economicenvironment global andahigher developmentbyThe good primarily domestic shouldbesupported expected to achieve growth of1.7 positively. achieving growth After of0.4 to be about 1 policy. Following – regarding financial beburdenedwill still increased with uncertainty a recovery andnot anupturn isanticipated Euro inthe zone,which Fraport AnnualReport2013 % to 3 %, Turkey +3.5 %) is expected, among others, in the USA. Ingeneral, only %) isexpected, amongothers,USA. inthe % in 2014. Germany should continue to develop more 0.4 %, Bulgaria +1.7 %, Bulgaria %, the following%, the growth rates are expected: Peru % in the 2013fiscal % inthe year, expectedthis figure is % in2014. %. % in the 2013fiscal % inthe year, itis traffic willalso have theincrease an impact on in volume. Lima, inadditionto international the traffic, theincrease indomestic Antalya, Varna andBurgas over andabove organic growth. their In GulfRegion canaffect andthe Africa politicalsituationinNorth the growththat rates willbearound 5 50 of atleast share aFraport with coming years isexpected for Group the airports outlook formistic tourism, an increase numbers over in passenger the basisofpositiveOn the opti economicassumptions- andasustained cargo outlookissubjecttothe increased uncertainty. Asian connections and volatilethe economic prospects of both regions, and American ofcargo handledonNorth highproportion still on the rate site forcontext ofmarket the Frankfurt within the growth. Based Executive handled,the nage Board rather amoderate expects growth regard With yieldandcapacitymanagement. to cargo ton - short-term from airlines’ the uncertainty business,there willbefurther passenger more favorable economicenvironment willhave apositive impact on rate traffic in passenger of between 2 previous site inthe than Frankfurt at the year. Itforecasts agrowth Executivethe Board better expects development for fiscal year 2014 Taking conditionsinto account, economicandindustry-specific the Forecasted business development 2014 December 2013. Source: 6,2014,IATA ACIPressRelease February FinancialForecast, Industry growth rate previous the with incomparison year. is forecasted willhave apositive neither nornegative impact onthe Europewith seeing4.7 market of6 kilometerspassenger –IATA forecasts anincreaseaviation global inthe and 1.5 airports ACI anticipates growth volume inpassenger of3.2 the as well intotheairlines, financialsituationof accountthe astaking expected development basisofthe On the ofeconomicconditions Development of the global aviation market % in 2014 under very differentgrowth % in2014undervery ratesthe in regions, %: Antalya, LimaVarna. Itisanticipated andBurgas % in freight tonnage for 2014. Conversely – based on %. The unchanged high crude oil price that that oilprice highcrude %. Theunchanged Group ManagementReport/Outlook % onaverage. fiscal Asinpast years, % and 3 %. While the generally%. While the % for European 85

Consolidated Financial Statements Group Management Report 86 Fraport Annual Report 2013 Group Management Report / Outlook Report

Forecasted results of operations for 2014 Reconciliation of the 2013 business figures to IFRS 11:

Group

€ million 2013 reported figures Figures adjusted to IFRS 11 Change Change in %

Revenue 2,561.4 2,378.2 – 183.2 – 7.2

EBITDA 880.2 733.3 – 146.9 – 16.7

EBIT 528.1 439.0 – 89.1 – 16.9

EBT 340.7 331.6 – 9.1 – 2.7

Group result 235.7 235.7 0.0 –

Value added 1.3 – 41.5 – 42.8 –

Table 33

The expected positive business development will be reflected in an between approximately € 780 million and some € 800 million. With increase in Group revenue in 2014. At the Frankfurt site, the increase slightly higher depreciation and amortization, growth of up to around in airport and infrastructure charges in particular, as well as additional € 500 million is forecasted for the Group EBIT. revenue in the Retail and Real Estate divisions, will also have a revenue- increasing effect over and above the traffic development. Conversely, Primarily due to the difficulty in predicting interest and exchange rates particularly lower capacitive capital expenditure in the Group company effects, the forecast for the Group EBT and result for fiscal year 2014 Twin Star in connection with the application of IFRIC 12 will lead to is subject to uncertainty. The Executive Board currently assumes that a reduction in reported Group revenue. Due to a correspondingly the Group financial result will deteriorate in comparison with 2013, lower cost of materials, however, this effect will not have any impact resulting in values forecasted for the Group EBT and Group result that on Group EBITDA. In total, the Executive Board expects an increase in are slightly above the previous year. revenue up to a level of approximately € 2.45 billion. In view of the long-term positive outlook for earnings, the Executive Adjusted for the effects of the application of IFRIC 12, the Executive Board intends to hold the dividend per share at least stable for the Board expects growing expenses in fiscal year 2014, which will result fiscal year 2014 at € 1.25. The 2014 Group value added will be slightly from higher traffic-related concessions payments in the Group company above that of 2013, but remain negative. Lima and an expected tariff increase in wages and salaries. In summary, the Executive Board expects the increase in revenue will be above Forecasted segment development for 2014 the expense development, meaning that the Group EBITDA will lie Reconciliation of 2013 segment figures to IFRS 11:

Aviation

€ million 2013 reported figures Figures adjusted to IFRS 11 Change Change in %

Revenue 845.2 845.6 0.4 0.0

EBITDA 205.4 205.4 0.0 –

EBIT 88.1 88.1 0.0 –

Value added – 121.7 – 121.7 0.0 –

Table 34

Retail & Real Estate

€ million 2013 reported figures Figures adjusted to IFRS 11 Change Change in %

Revenue 469.0 467.9 – 1.1 – 0.2

EBITDA 350.7 350.6 – 0.1 0.0

EBIT 267.9 267.8 – 0.1 0.0

Value added 98.1 101.0 2.9 3.0

Table 35 Gearing ratio Net financialdebt Shareholders’ equity Total assets Free cashflow Operating cashflow plant andequipmentinvestmentproperty other intangibleassets,property, Cash flowusedinairportoperatingprojects, € million position financial and Asset Handling segmentasaresult expected traffic ofthe development as There will be a slight increase in revenue in 2014 in the samelevelthe previous asthe year. value2014, the segmentwillremain addedofthe atapproximatelyIn a slightincrease isexpected inrevenue, EBITDA andEBITin2014. lower proceeds are plannedfrom realization the oflandsales.Intotal, revenueparking willhave arevenue-increasing effect. Conversely, ment ofrevenue Retail inthe division.Over andabove higher the this, number,higher passenger develop impact the whichwillprimarily - The will beslightly above previous the year’s level, butremain negative. €20 millionisforecasted. value In2014,the segment addedofthe EBITDAthe segment,for andEBITofthe whichgrowth ofupto about over andabove traffic the development. Thehigher revenue will impact will have 1,2014inparticular arevenue-increasingon January effect charges by anaveragement in2014.Theincrease inairport of2.9 reflected inan increase ofup to 5 The positive development passenger site Frankfurt willbe atthe Value added EBIT EBITDA Revenue € million &Services Activities External EBIT EBITDA Revenue € million Ground Handling Value added Fraport AnnualReport2013 segment will also benefit in 2014 fromthe &Real Estate Retail % inrevenue in the

2013 reportedfigures 2013 reportedfigures 2013 reportedfigures Aviation seg- 101.3 % 2,975.4 3,098.8 9,523.4 Ground 574.8 501.7 174.4 285.9 591.0 656.2 – 57.8 73.1 51.3 38.2 – 2.3

%

Figures adjustedtoIFRS11 Figures adjustedtoIFRS11 Figures adjustedtoIFRS11

lower level the than of2013. and EBITin2014.The2014value addedisanticipated to beslightly digitmillion€range single arethe expected for segment’s the EBITDA As aresult positive ofthe organic development ofrevenue, increases in als, however, effect this willnot have any impact onsegmentEBITDA. revenue ofupto 5 segmenta impact andleadto reported adeclineinthe particular pany Twin applicationofIFRIC12willhave the Star inconnectionwith Conversely, lower capacitive Group inthe expenditure com- capital . expected in2014for&Services Activities segmentExternal the Groupat the sites anorganic growth outsideFrankfurt, inrevenue is positive the In connectionwith anticipated businessdevelopments previousbe onthe year’s level remain negative. andthus onceagain samelevelthe previous asthe year. Thevalue segmentwill addedofthe anticipates segmentEBITDA that andEBITwillremain atapproximately well increases asprice for infrastructure charges. TheExecutive Board Reconciliation of2013asset andfinancialposition to IFRS11: 2014 for position financial and asset Forecasted 2,870.6 3,116.7 8,835.8 97.1 % 454.1 437.0 144.7 415.7 649.0 – 60.2 89.1 17.1 30.1 32.6 – 6.0

%. Dueto corresponding lower the ofmateri cost -

Group ManagementReport/Outlook Change Change Change – 104.8 – 687.6 – 120.7 – 141.2 – 175.3 – 85.3 – 56.0 – 64.7 – 21.2 17.9 – 7.2 – 3.7 – 5.6 – 2.4

– Change in% Change in% Change in% Table 38 Table 37 Table 36 – 48.9 – 49.4 – 41.3 – 21.0 – 29.7 – 76.6 – 12.9 – 14.7 – 3.5 – 7.2 – 1.1 0.6 87

– – –

Consolidated Financial Statements Group Management Report 88 Fraport Annual Report 2013 Group Management Report / Outlook Report

The asset and financial position of the Fraport Group in the 2014 fiscal In the 2014 fiscal year, the Executive Board again aims to enhance year will be characterized by a slight decline in capital expenditure employee satisfaction in the attractiveness as an employer category. volume as well as the repayment of long-term financial liabilities. The The objective is to achieve an average grade of better than 3.0. In capital expenditure focus will continue to be on modernization and addition, the Executive Board aims to further reduce the number of maintenance measures as well as preparations for Terminal 3. The work accidents. Executive Board continues to examine opportunities for ongoing improvement of the asset and financial position of Fraport Group. Medium-term outlook Fraport expects a sustained recovery of the global economy in the As a result of the expected positive business development and lower medium-term as well as an improvement in the economic situation in cash flow used in investing activities, a slightly improved free cash the Euro zone in particular. Positive development is also anticipated in flow is expected in 2014 compared with 2013. Despite the positive the aviation market, which will also be positive for the Fraport Group’s development of the free cash flow, the Group’s liquidity in 2014 – airports. Correspondingly, the Executive Board forecasts positive due to the dividend distribution for the 2013 fiscal year – is expected operating performance in all segments in the medium-term. In the to decline slightly, which will lead to a slight increase in net financial long-term, the situation in the Ground Handling segment must be debt. The gearing ratio, however, is forecasted to be slightly below closely monitored in connection with plans for the further liberali- the level of 2013. This will be due to the increase in shareholders’ zation of ground handling services (see also the chapter “Risk and equity as a result of additions to revenue reserves. The total assets in Opportunities Report” beginning on page 67). 2014 are expected to be slightly lower than the 2013 figure primarily owing to the repayment of long-term financial liabilities. The Group interest expenses are expected to fall in connection with the planned decrease in long-term financial liabilities. In the medium- If, in the course of its efforts, Fraport should expand external business term, the Executive Board therefore anticipates an increase in the in fiscal year 2014 and carry out relatively large acquisitions, the actual Group EBT, Group result and value added, in addition to the positive development of the asset, financial and earnings position could deviate development of EBITDA and EBIT. significantly from the aforementioned forecast. In connection with the forecasted business development, the Executive Forecasted non-financial performance indicators for 2014 Board expects a positive development of the free cash flow at least until In the 2014 fiscal year, Fraport will continue to focus on the devel- the start of the construction work on Terminal 3 from around 2015. The opment of non-financial performance indicators as well as financial additional liquidity from the free cash flow will first be used to repay development. In the area of customer satisfaction and product long-term financial liabilities. In connection with the Group result ris- quality, the expectation of the Executive Board is still to achieve global ing in the medium-term and the resulting additions to shareholders’ satisfaction of at least 80 % at the Frankfurt site. While the punctuality equity, the Executive Board expects a reduction in the gearing ratio rate is forecasted at an unchanged, high level, the Executive Board to a value between 80 % and 100 %. projects baggage connectivity of above 98.5 %. The goal is to achieve sustainable baggage connectivity of over 98.5 %. A value significantly The Executive Board aims on the one hand to achieve dividend conti- above 90 % is expected for equipment availability. nuity for the dividend payment, in the sense of a minimum dividend, and on the other hand a participation in Fraport AG’s growing results for the years.

Furthermore, the focus remains on the development of non-financial performance indicators. The objective is still to achieve a high level of customer satisfaction and product quality as well as attractiveness as an employer.

The aforementioned medium-term outlook is subject to relatively large acquisition projects in external business. Dr Schulte Non-financial performance indicators Non-financial performance Asset andfinancialposition Fraport segments Group earnings and itsGroupcompaniesoperate.Readersare cautionednottorelyaninappropriatelylargeextentonstatementsmadeaboutthe future. Worldwide changes,thesuccessof businessoperationsandasubstantialdeteriorationinbasiceconomicconditionsthe marketsinwhichFraportAGFrankfurtAirportServices tory actual resultswilldiffermateriallyfromthese statements.Thesefactorsinclude,amongothers,butarenotlimitedto,thecompetitive environmentinderegulatedmarkets,regula Worldwideto anumberofuncertaintiesandotherfactors, manyofwhicharebeyondthecontrolFraportAGFrankfurtAirportServices andwhichcouldhavetheeffectthat the Where thestatementsmadeinthisdocument relatetothefutureratherthanpast,thesestatementsarebasedonanumberofassumptions aboutfutureeventsandaresubject The Executive Board Worldwide Services Airport Frankfurt AGFraport amMain,MarchFrankfurt 4,2014 1) outlook business the of figures key of Aggregation Passengers Fraport AnnualReport2013 financial andearningspositionin2013wereadjustedtothenewaccountingregulationonaproformabasis. 1,2014onwards,thevaluesofasset, In connectionwiththefirst-timeapplicationofIFRS11fromJanuary Giesen 1,346 workaccidents Employee satisfactionof3.02 Equipment availabilityof94.8 Gearing ratio:97.1 Baggage connectivityof98.4 Global satisfactionof80 Free cashflow:€17.1million Punctuality rateof82.3 property: €437.0million plant andequipmentinvestment projects, otherintangibleassets,property, Cash flowusedinairportoperating EBIT: €89.1million €415.7 million,EBITDA:€144.7 Revenue: External Activities&Services: EBIT: –€6.0million €649.0 million,EBITDA:€32.6 Ground handling:Revenue: EBIT: €267.8million €467.9 million,EBITDA:€350.6 Retail &RealEstate:Revenue: EBIT: €88.1million EBITDA: €205.4million, Aviation: Revenue:€845.6million, Value added:–€41.5million Result: €235.7million EBIT: €439.0million EBITDA: €733.3million Revenue: €2.38billion Burgas: 2.5million,Varna: 1.3million Antalya: 26.7million,Lima:14.9

Value 2013 Frankfurt: 58.0million 1) Müller % % % % % Further reductionaimedfor Better than3.0 Significantly above90 vr 98.5 % Over At least80 Slight decline Slight improvement Aim toremainatahighlevel Decline incapitalexpenditurevolume million €range in EBITDAandEBITthesingledigit Organic growthinrevenueandincrease on previousyear’s level and EBITeachapproximately Slight increaseinrevenue,EBITDA slight increasecomparedwith2013 Revenue, EBITDAandEBITeachwith €20 million and EBITincreaseofuptoapproximately Increase inrevenueofupto5 Slight increase,butstillnegative Slightly abovethepreviousyear Growth uptoaround€500million and some€800million Between approximately€780million €2.45 billion Increase uptoalevelofapproximately and Varna Growth inAntalya,Lima,Burgas Increase between2 Outlook 2014

Schmitz % % and3 % % %, EBITDA Dr Zieschang Group ManagementReport/Outlook Further reductionaimedfor Better than3.0 Significantly above90 vr 98.5 % Over work onTerminal 3 Decline atleastuntilthestartofconstruction work onTerminal 3fromaround2015 Improvement untilthestartofconstruction Remain atahighlevel from around2015 of constructionworkonTerminal 3 Moderate developmentuntilthestart and EBITincomparisonwith2014 Organic growthinrevenue,EBITDA At least80 EBIT incomparisonwith2014 Growth inrevenue,EBITDAand EBIT incomparisonwith2014 Growth inrevenue,EBITDAand EBIT incomparisonwith2014 Growth inrevenue,EBITDAand Growth comparedwith2014 Growth comparedwith2014 Growth comparedwith2014 Growth comparedwith2014 Growth comparedwith2014 compared with2014 Growth inAntalya,Lima,BurgasandVarna Positive development Medium-term outlook % % Table 39 - 89

Consolidated Financial Statements Group Management Report 90 Fraport Annual Report 2013 Consolidated Financial Statements Ground Handling Ground Fraport AnnualReport2013 in theearlybagstoragearea. evening beforeorbelongingtopassengerswhodonothaveanimmediateconnectingflightisstoredtemporarily to thedepartureloadingpointvia81-kilometerbaggageconveyorsystem.Baggagealreadycheckedin has beensenttothebaggageconveyorsystem,suitcasesarescreenedcompletelyautomaticallyandtransported checked intheirbaggageatoneofthesome420check-indesksordrop-offmachines,transfer consideration, thisamountedtoabout27,500,000baggageitemsatFrankfurtin2013.Oncepassengershave passenger travels with a suitcase. If Fraport takes only departing Almost and every transferring passengers into About 27,500,000 baggage items... Consolidated FinancialStatements 91

Further Information Consolidated Financial Statements 90 Fraport Annual Report 2013 Consolidated Financial Statements

...loaded minute by minute

Once the suitcases and bags to be loaded have reached the departure loading point near the respective aircraft positions, they are removed from the baggage containers by Fraport employees. Thereby the employees sort first and priority class baggage, as well as transfer baggage and baggage of passengers, who have reached their destination after the flight, into separate loading units. Fraport loads about 75 baggage items a minute, calculated on the basis of an average day and the operating times of the airport. On busy days during the summer months, the figure increases to about 100. Fraport AnnualReport2013 Consolidated FinancialStatements 91

Further Information Consolidated Financial Statements 92 Fraport Annual Report 2013 Consolidated Financial Statements / Consolidated Income Statement

Consolidated Financial Statements for the Fiscal Year 2013

Consolidated Income Statement

€ million Notes 2013 2012 adjusted

Revenue (5) 2,561.4 2,442.0

Change in work-in-process (6) 0.6 0.5

Other internal work capitalized (7) 35.1 44.0

Other operating income (8) 34.3 55.8

Total revenue 2,631.4 2,542.3

Cost of materials (9) – 613.0 – 558.1

Personnel expenses (10) – 946.8 – 942.9

Depreciation and amortization (11) – 352.1 – 352.7

Other operating expenses (12) –191.4 –192.6

Operating result 528.1 496.0

Interest income (13) 38.8 52.6

Interest expenses (13) – 215.8 – 226.7

Result from associated companies (14) –13.6 11.7

Other financial result (15) 3.2 30.5

Financial result –187.4 –131.9

Result from ordinary operations 340.7 364.1

Taxes on income (16) –105.0 –112.6

Group result 235.7 251.5

thereof profit attributable to non-controlling interests 14.7 13.3

thereof profit attributable to shareholders of Fraport AG 221.0 238.2

Earnings per € 10 share in € (17)

basic 2.40 2.59

diluted 2.39 2.58

EBIT ( = Operating result) 528.1 496.0

EBITDA ( = EBIT + Depreciation and amortization) 880.2 848.7

Table 40 Fraport AnnualReport2013 Consolidated StatementofComprehensive Income € million Fair valuechangesofderivatives Items thatwillnotbereclassifiedsubsequentlytoprofitorloss Group result Comprehensive income Other resultafterdeferredtaxes Items thatwillbereclassifiedsubsequentlytoprofitorloss for usingtheequitymethoddirectlyrecognizedin Income andexpensesfromassociatedcompaniesaccounted Currency translationofforeignGroupcompanies Fair valuechangesoffinancialinstrumentsheldforsale (Deferred taxesrelatedtothoseitems Remeasurements ofdefinedbenefitpensionplans Changes directlyrecognizedinequity thereof realizedgains(+)/losses(–) thereof attributabletoshareholdersofFraportAG thereof attributabletonon-controllinginterests (Deferred taxesrelatedtothoseitems (Deferred taxesrelatedtothoseitems (Deferred taxesrelatedtothoseitems thereof realizedgains(+)/losses(–) Changes directlyrecognizedinequity Consolidated FinancialStatements/StatementofComprehensiveIncome

235.7 252.4 266.5 – 38.1 –16.2 2013 17.0 14.1 30.8 30.1 55.1 – 4.1 – – 0.6 – 6.8 –1.2 0.7 1.9 1.7 1.0 6.8 0.0

adjusted Table 41 251.5 190.3 203.3 – 62.0 – 29.7 – – – –11.8 2012 13.0 48.2 41.9 32.3 26.6 14.8 – – 7.1 – – 0.8) 2.4) 1.5) 9.6) 6.3 3.1 8.2

93

Further Information Consolidated Financial Statements 94 Fraport Annual Report 2013 Consolidated Financial Statements / Consolidated Statement of Financial Position

Consolidated Statement of Financial Position as at December 31, 2013

Assets

€ million Notes December 31, 2013 December 31, 2012 January 1, 2012 adjusted adjusted

Non-current assets

Goodwill (18) 38.6 38.6 38.6

Investments in airport operating projects (19) 1,006.1 1,031.2 1,067.1

Other intangible assets (20) 57.8 44.2 43.6

Property, plant and equipment (21) 5,988.1 5,927.3 5,643.8

Investment property (22) 47.7 34.4 74.6

Investments in associated companies (23) 121.2 136.6 138.0

Other financial assets (24) 727.6 742.7 648.6

Other receivables and financial assets (25) 169.8 117.1 33.5

Income tax receivables (26) 20.3 19.5 29.6

Deferred tax assets (27) 43.7 49.2 48.2

8,220.9 8,140.8 7,765.6

Current assets

Inventories (28) 75.3 77.7 81.4

Trade accounts receivable (29) 181.6 180.0 163.9

Other receivables and financial assets (25) 438.4 385.2 280.2

Income tax receivables (26) 2.1 35.0 6.2

Cash and cash equivalents (30) 605.1 821.9 927.1

1,302.5 1,499.8 1,458.8

Total 9,523.4 9,640.6 9,224.4

Liabilities and Equity

€ million Notes December 31, 2013 December 31, 2012 January 1, 2012 adjusted adjusted

Shareholders’ equity

Issued capital (31) 922.1 921.3 918.8

Capital reserve (31) 590.2 588.0 584.7

Revenue reserves (31) 1,540.8 1,403.2 1,327.0

Equity attributable to shareholders of Fraport AG (31) 3,053.1 2,912.5 2,830.5

Non-controlling interests (32) 45.7 35.7 29.4

3,098.8 2,948.2 2,859.9

Non-current liabilities

Financial liabilities (33) 4,146.8 4,401.0 4,034.0

Trade accounts payable (34) 50.8 64.4 64.9

Other liabilities (35) 889.4 1,006.4 1,001.0

Deferred tax liabilities (36) 120.4 102.5 110.8

Provisions for pensions and similar obligations (37) 26.7 27.4 22.9

Provisions for income taxes (38) 54.1 80.2 68.1

Other provisions (39) 235.1 211.2 201.8

5,523.3 5,893.1 5,503.5

Current liabilities

Financial liabilities (33) 314.9 196.6 219.9

Trade accounts payable (34) 162.4 214.4 228.9

Other liabilities (35) 178.4 163.2 187.4

Provisions for income taxes (38) 8.1 5.3 2.4

Other provisions (39) 237.5 219.8 222.4

901.3 799.3 861.0

Total 9,523.4 9,640.6 9,224.4

Table 42 Fraport AnnualReport2013 Consolidated StatementofCashFlows 1) Thisreferstojointventures, associatedcompaniesandinvestments. Operating activities Financial activities Interest paid Proceeds fromdisposalofnon-currentassets without investmentsincashdepositsandsecurities Cash flowusedininvestingactivities € million

Adjustments for Profit attributabletonon-controllinginterests Profit attributabletoshareholdersofFraportAG Changes inprovisions Changes inliabilities Changes inreceivablesandfinancialassets Changes ininventories Fair valuechangesinassociatedcompanies Taxes onincomepaid Interest received

Financial investments in securities and promissory noteloans Financial investmentsinsecuritiesandpromissory Cash flowfromoperatingactivities Investments inairportoperatingprojects Cash flowusedininvestingactivities Decrease oftimedepositswithadurationmorethanthreemonths noteloans Proceeds fromdisposalofsecuritiesandpromissory Capital expenditureforotherintangibleassets

Dividends paidtoshareholdersofFraportAG Capital expenditureforproperty, plant,andequipment Dividends paidtonon-controllinginterests Investment property Repayment oflong-termfinancialliabilities Cash inflowfromlong-termfinancialliabilities Capital increase Loans toaffiliatedcompanies Dividends fromassociatedcompanies Changes inshort-termfinancialliabilities Cash flowusedin/fromfinancingactivities

Foreign currencytranslationeffectsoncash and cashequivalents 1 Cash andcashequivalentsasatJanuary Change incashandequivalents Change inrestrictedcash Cash andcashequivalentsasatDecember 31 Others Gains/losses fromdisposalofnon-currentassets Interest result Depreciation andamortization Taxes onincome 1) Consolidated FinancialStatements/StatementofCashFlows

(42)(30) (37 –39) (34 –35) Notes (23) (13) (11) (16) (25) (28) (14) (24) (42) (19) (42) (30) (20) (31) (21) (22) (33) (31) (23) (42) (30)

– 492.8 – 167.3 – 484.6 – 107.4 – – 115.2 – 362.3 – 189.4 – 807.1 221.0 177.0 352.1 105.0 574.8 251.6 445.8 280.0 255.1 127.1 167.4 – 27.3 – 87.3 – 86.0 – 23.3 2013 14.7 25.0 13.6 21.0 55.1 45.2 – 8.7 – 4.1 – 4.0 – 4.9 0.0 5.9 5.8 5.1 2.4 2.5 3.0 5.5

adjusted Table 43 – 736.2 – 167.3 – 121.3 – 563.0 – – 114.8 – 598.6 – 163.7 – 151.6 809.8 238.2 174.1 352.7 112.6 553.0 424.0 779.2 652.7 218.2 132.8 127.1 – 31.2 – 33.2 – 42.7 – 20.6 – 11.7 – 89.4 – 22.0 2012 21.7 13.3 31.8 96.0 – 5.4 – 6.7 – – 1.2 4.0 1.7 3.7 2.3 6.4 4.5 3.5

95

Further Information Consolidated Financial Statements 96 Fraport Annual Report 2013 Consolidated Financial Statements / Consolidated Statement of Changes in Equity

Consolidated Statement of Changes in Equity

€ million Notes Issued capital Capital reserve Revenue reserves Foreign currency Financial Revenue reserves Equity Non-controlling Equity (total) reserve instruments (total) attributable to interests shareholders of Fraport AG

Balance as at January 1, 2013 adjusted 921.3 588.0 1,511.8 8.4 –117.0 1,403.2 2,912.5 35.7 2,948.2

Foreign currency translation effects – – – – 3.6 – – 3.6 – 3.6 – 0.5 – 4.1

Income and expenses from associated companies directly recognized in equity – – – 0.4 –1.1 2.6 1.1 1.1 – 1.1

Remeasurements of defined benefit plans – – 0.8 – – 0.8 0.8 – 0.1 0.7

Fair value changes of financial assets held for sale – – – – – 5.8 – 5.8 – 5.8 – – 5.8

Fair value changes of derivatives – – – – 38.9 38.9 38.9 – 38.9

Other result 0.0 0.0 0.4 – 4.7 35.7 31.4 31.4 – 0.6 30.8

Issue of shares for employee investment plan 0.6 1.9 – – – – 2.5 – 2.5

Management Stock Options Plan

Capital increase for exercise of subscription rights 0.2 0.3 – – – – 0.5 – 0.5

Distributions – – –115.2 – – –115.2 –115.2 – 4.1 –119.3

Group result – – 221.0 – – 221.0 221.0 14.7 235.7

Consolidation activities/other changes – – 0.4 – – 0.4 0.4 – 0.4

Balance as at December 31, 2013 (31), (32) 922.1 590.2 1,618.4 3.7 – 81.3 1,540.8 3,053.1 45.7 3,098.8

Balance as at December 31, 2011 918.8 584.7 1,384.9 11.5 – 78.5 1,317.9 2,821.4 29.4 2,850.8

Effects of retrospectively adopting IAS 19R – – 9.1 – – 9.1 9.1 – 9.1

Balance as at January 1, 2012 adjusted 918.8 584.7 1,394.0 11.5 – 78.5 1,327.0 2,830.5 29.4 2,859.9

Foreign currency translation effects – – – – 2.8 – – 2.8 – 2.8 – 0.3 – 3.1

Income and expenses from associated companies directly recognized in equity – – – – 0.3 – 6.4 – 6.7 – 6.7 – – 6.7

Remeasurements of defined benefit plans – – – 6.3 – – – 6.3 – 6.3 – – 6.3

Fair value changes of financial assets held for sale – – – – – 9.4 – 9.4 – 9.4 – – 9.4

Fair value changes of derivatives – – – – – 22.7 – 22.7 – 22.7 – – 22.7

Other result 0.0 0.0 – 6.3 – 3.1 – 38.5 – 47.9 – 47.9 – 0.3 – 48.2

Issue of shares for employee investment plan 0.5 1.8 – – – – 2.3 – 2.3

Management Stock Options Plan

Capital increase for exercise of subscription rights 2.0 1.3 – – – – 3.3 – 3.3

Value of performed services (fair value) – 0.2 – – – – 0.2 – 0.2

Distributions – – –114.8 – – –114.8 – 114.8 – 6.7 –121.5

Group result – – 238.2 – – 238.2 238.2 13.3 251.5

Consolidation activities/other changes – – 0.7 – – 0.7 0.7 – 0.7

Balance as at December 31, 2012 (31), (32) 921.3 588.0 1,511.8 8.4 –117.0 1,403.2 2,912.5 35.7 2,948.2

Table 44 Consolidated StatementofChangesinEquity Balance asatDecember31,2012 Consolidation activities/otherchanges Group result Distributions Management StockOptionsPlan Issue ofsharesforemployeeinvestmentplan Other result Fair valuechangesofderivatives Fair valuechangesoffinancialassetsheldforsale Remeasurements ofdefinedbenefitplans Income andexpensesfromassociatedcompaniesdirectlyrecognizedinequity Foreign currencytranslationeffects 1,2012adjusted Balance asatJanuary Effects ofretrospectivelyadoptingIAS19R Balance asatDecember31,2011 Balance asatDecember31,2013 Consolidation activities/otherchanges Group result Distributions Management StockOptionsPlan Issue ofsharesforemployeeinvestmentplan Other result Fair valuechangesofderivatives Fair valuechangesoffinancialassetsheldforsale Remeasurements ofdefinedbenefitplans Income andexpensesfromassociatedcompaniesdirectlyrecognizedinequity Foreign currencytranslationeffects 1,2013adjusted Balance asatJanuary € million Value (fairvalue) services ofperformed Capital increaseforexercise ofsubscriptionrights Capital increaseforexercise ofsubscriptionrights

(31), (32) (31), (32) Notes

Issued capital 921.3 918.8 918.8 922.1 921.3 2.0 0.2 0.5 0.0 0.6 0.0

– – – – – – – – – – – – – – – – – –

Capital reserve 588.0 584.7 584.7 590.2 588.0 0.2 1.3 0.3 1.8 0.0 1.9 0.0

– – – – – – – – – – – – – – – – –

Fraport AnnualReport2013 Revenue reserves 1,511.8 1,394.0 1,384.9 1,618.4 1,511.8 –114.8 –115.2 238.2 221.0 – 6.3 – 6.3 – 0.4 0.4 0.7 9.1 0.4 0.8

– – – – – – – – – – – –

Foreign currency reserve 11.5 11.5 – 0.3 – 2.8 – 3.6 – 3.1 – 4.7 –1.1 8.4 3.7 8.4

– – – – – – – – – – – – – – – – – –

instruments Financial –117.0 –117.0 – 22.7 – – – – 38.5 35.7 38.9 78.5 78.5 81.3 – 9.4 – 6.4 – 5.8 2.6

– – – – – – – – – – – – – – – –

Revenue reserves Revenue reserves Consolidated FinancialStatements/StatementofChangesinEquity 1,403.2 1,327.0 1,317.9 1,540.8 1,403.2 –114.8 –115.2 (total) 238.2 221.0 – 22.7 – 47.9 31.4 38.9 – 2.8 – 3.6 – 6.3 – 9.4 – 6.7 – 5.8 9.1 1.1 0.7 0.4 0.8

– – – – –

shareholders of attributable to Fraport AG 2,912.5 2,830.5 2,821.4 3,053.1 2,912.5 – 114.8 –115.2 Equity 238.2 221.0 – 22.7 – 47.9 31.4 38.9 – 2.8 – 3.6 – 6.3 – 9.4 – 6.7 – 5.8 9.1 1.1 0.2 3.3 2.3 0.5 2.5 0.7 0.4 0.8

Non-controlling interests 13.3 14.7 35.7 29.4 29.4 45.7 35.7 – 0.3 – 0.5 – 6.7 – 0.6 – 0.3 – 0.1 – 4.1 –

– – – – – – – – – – – – – – Equity (total) 2,948.2 2,859.9 2,850.8 3,098.8 2,948.2 Table 44 –121.5 –119.3 251.5 235.7 – 48.2 – 38.9 30.8 22.7 – – – – – – 9.1 3.1 4.1 1.1 0.2 3.3 2.3 0.5 2.5 0.7 0.4 6.3 9.4 6.7 5.8 0.7

97

Further Information Consolidated Financial Statements 98 Fraport Annual Report 2013 Consolidated Financial Statements / Consolidated Statement of Changes in non-current Assets

Consolidated Statement of Changes in non-current Assets (Notes 18 to 24)

€ million Goodwill Investments Other Lands, land Technical Other Construc- Property, Investment Investments Other Available At fair value Loans to Other loans Other in aiport intangible rights and equipment equipment, tion in plant and property in associated investments for sale securities affiliated financial operating assets buildings, and operating progress equipment companies securities companies 1) assets projects including machinery and office (total) (total) buildings on equipment leased lands

Aquisition/production costs

Balance as at January 1, 2013 135.2 1,354.5 140.3 5,699.5 2,939.6 436.6 675.7 9,751.4 40.5 207.3 52.4 486.1 0.9 189.9 71.8 801.1

Foreign currency translation effects – 15.0 – 0.3 – 0.6 – 0.6 – 1.1 0.0

Additions 57.1 8.7 113.9 103.4 27.3 150.5 395.1 14.4 3.4 168.2 15.0 183.2

Disposals – 20.3 – 62.0 – 131.8 – 50.7 –15.0 – 259.5 – 17.7 – 0.1 – 5.2 – 2.1 – 7.4

Reclassifications 16.0 106.0 98.3 3.8 – 223.8 –15.7 – 0.3 – 149.0 – 0.9 – 40.2 – 190.1

Balance as at December 31, 2013 135.2 1,396.6 144.4 5,857.4 3,009.5 416.4 587.4 9,870.7 54.6 191.9 52.3 505.3 0.0 184.7 44.5 786.8

Accumulated depreciation and amortization

Balance as at January 1, 2013 96.6 323.3 96.1 2,132.8 1,416.1 274.1 1.1 3,824.1 6.1 70.7 –10.6 –10.9 0.0 61.5 18.4 58.4

Foreign currency translation effects – 5.6 – 0.3 – 0.5 – 0.5 0.0

Impairment losses in accordance with IAS 36 0.0 0.5 0.0

Additions 72.8 10.9 148.5 86.7 32.4 267.6 0.3 0.0

Disposals – 20.1 – 52.9 – 109.1 – 46.6 – 208.6 0.0

Reclassifications 0.0 0.8 0.8

Write-ups 0.0 3.4 –1.9 – 1.5 0.0

Balance as at December 31, 2013 96.6 390.5 86.6 2,228.4 1,393.7 259.4 1.1 3,882.6 6.9 70.7 – 7.2 – 12.0 0.0 61.5 16.9 59.2

Carrying amounts

Balance as at December 31, 2013 38.6 1,006.1 57.8 3,629.0 1,615.8 157.0 586.3 5,988.1 47.7 121.2 59.5 517.3 0.0 123.2 27.6 727.6

Aquisition/production costs

Balance as at January 1, 2012 135.2 1,322.3 136.4 5,273.4 2,567.7 395.7 1,015.9 9,252.7 87.5 208.7 52.4 418.9 0.9 161.8 62.1 696.1

Foreign currency translation effects – 6.9 – 0.1 – 0.2 – 0.2 – 0.3 0.0

Additions 39.1 5.4 232.8 86.3 53.5 230.3 602.9 12.2 12.1 318.1 31.2 38.7 388.0

Disposals – 5.4 – 5.1 – 40.8 – 24.7 – 11.5 – 82.1 – 6.8 –101.5 – 3.1 – 0.8 – 105.4

Reclassifications 4.0 198.4 326.4 12.3 – 559.0 – 21.9 – 59.2 – 6.4 –149.4 – 28.2 – 177.6

Balance as at December 31, 2012 135.2 1,354.5 140.3 5,699.5 2,939.6 436.6 675.7 9,751.4 40.5 207.3 52.4 486.1 0.9 189.9 71.8 801.1

Accumulated depreciation and amortization

Balance as at January 1, 2012 96.6 255.2 92.8 1,975.0 1,367.2 265.6 1.1 3,608.9 12.9 70.7 – 7.9 – 27.3 0.0 64.2 18.5 47.5

Foreign currency translation effects – 2.9 – 0.1 – 0.1 0.0

Impairment losses in accordance with IAS 36 0.0 0.3 0.0

Additions 71.0 8.6 154.5 85.2 32.9 272.6 0.2 0.0

Disposals – 5.3 – 2.7 – 37.2 – 24.3 – 64.2 34.2 – 2.7 31.5

Reclassifications 6.0 0.9 6.9 – 6.9 1.4 1.4

Write-ups 0.0 – 0.4 – 2.7 – 19.2 – 0.1 – 22.0

Balance as at December 31, 2012 96.6 323.3 96.1 2,132.8 1,416.1 274.1 1.1 3,824.1 6.1 70.7 – 10.6 – 10.9 0.0 61.5 18.4 58.4

Carrying amounts

Balance as at December 31, 2012 38.6 1,031.2 44.2 3,566.7 1,523.5 162.5 674.6 5,927.3 34.4 136.6 63.0 497.0 0.9 128.4 53.4 742.7

1) This refers to joint ventures, associated companies and investments. Table 45 (Notes 18(Notes to24) Consolidated StatementofChangesinnon-current Assets 1) Thisreferstojointventures,associatedcompanies andinvestments. Balance as at January 1,2013 Balance asatJanuary Accumulated depreciationandamortization Balance asatDecember31,2013 Reclassifications Disposals Additions Foreign currencytranslationeffects 1,2013 Balance asatJanuary Aquisition/production costs € million Balance as at January 1,2012 Balance asatJanuary Accumulated depreciationandamortization Balance asatDecember31,2012 Reclassifications Disposals Additions Foreign currencytranslationeffects 1,2012 Balance asatJanuary Aquisition/production costs Balance asatDecember31,2013 amounts Carrying Balance asatDecember31,2013 Write-ups Reclassifications Disposals Additions Impairment lossesinaccordancewithIAS36 Foreign currencytranslationeffects Reclassifications Disposals Additions Impairment lossesinaccordancewithIAS36 Foreign currencytranslationeffects Balance asatDecember31,2012 Write-ups Balance asatDecember31,2012 amounts Carrying

Goodwill 135.2 135.2 135.2 135.2 96.6 96.6 38.6 96.6 96.6 38.6

Investments operating in aiport projects 1,396.6 1,354.5 1,354.5 1,322.3 1,006.1 1,031.2 323.3 255.2 390.5 323.3 – 15.0 57.1 39.1 72.8 71.0 – 6.9 – 5.6 – 2.9

intangible assets Other 144.4 140.3 140.3 136.4 – 20.3 – 20.1 96.1 16.0 92.8 57.8 86.6 10.9 96.1 44.2 – 0.3 – 5.4 – 0.1 – 0.3 – 5.3 8.7 4.0 5.4 8.6

buildings on leased lands Lands, land rights and buildings, including 5,857.4 5,699.5 2,132.8 5,699.5 5,273.4 1,975.0 3,629.0 2,228.4 2,132.8 3,566.7 106.0 113.9 198.4 232.8 148.5 154.5 – 62.0 – 52.9 – 5.1 – 2.7 6.0

equipment machinery Technical 3,009.5 2,939.6 1,416.1 2,939.6 2,567.7 1,367.2 1,615.8 1,393.7 1,416.1 1,523.5 – 131.8 – 109.1 103.4 326.4 – 40.8 – 37.2 98.3 86.3 86.7 85.2 and 0.9

equipment, equipment and office operating Other 416.4 436.6 274.1 436.6 395.7 265.6 157.0 259.4 274.1 162.5 – 50.7 – 46.6 – 24.7 – 24.3 27.3 12.3 53.5 32.4 32.9 – 0.6 – 0.2 – 0.5 – 0.1 3.8

Fraport AnnualReport2013 Construc- progress 1,015.9 – 223.8 – 559.0 tion in 587.4 150.5 675.7 675.7 230.3 586.3 674.6 – 11.5 –15.0 1.1 1.1 1.1 1.1

equipment plant and Property, 3,824.1 3,608.9 3,882.6 9,870.7 9,751.4 9,751.4 5,988.1 3,824.1 9,252.7 5,927.3 – 208.6 – 259.5 (total) 267.6 395.1 272.6 602.9 – 64.2 – 82.1 – 21.9 –15.7 – 0.6 – 0.5 – 0.1 – 0.2 0.0 0.0 0.0 0.0 0.0 6.9

Investment property – 59.2 12.9 54.6 14.4 40.5 40.5 12.2 47.7 87.5 34.4 – 0.4 – 6.9 – 0.3 0.3 0.5 6.1 0.3 6.9 0.2 6.1

in associated Investments companies 191.9 207.3 207.3 121.2 208.7 136.6 – 17.7 70.7 70.7 70.7 12.1 70.7 – 1.1 – 0.3 – 6.8 – 6.4 3.4

investments Consolidated FinancialStatements/StatementofChangesinnon-currentAssets Other – –10.6 52.3 52.4 52.4 59.5 10.6 52.4 63.0 – 0.1 – 2.7 – – 3.4 7.9 7.2

securities Available for sale – 149.0 –101.5 –149.4 505.3 486.1 168.2 318.1 486.1 517.3 418.9 497.0 – 19.2 – – – –10.9 34.2 27.3 12.0 10.9 –1.9 1.4 0.8

At fairvalue securities – 0.9 0.0 0.0 0.0 0.9 0.0 0.9 0.0 0.0 0.9 0.9

companies affiliated Loans to 184.7 189.9 189.9 123.2 161.8 128.4 61.5 64.2 61.5 31.2 61.5 – 5.2 – 3.1 – 2.7

1)

Other loans – 40.2 – 28.2 18.4 18.5 44.5 15.0 71.8 16.9 38.7 71.8 27.6 18.4 62.1 53.4 – 2.1 – 0.8 – 0.1 – 1.5

financial Table 45 – – – (total) assets Other 105.4 190.1 786.8 183.2 801.1 388.0 801.1 727.6 696.1 742.7 177.6 – 22.0 31.5 58.4 47.5 59.2 58.4 – 7.4 0.0 0.0 0.0 0.0 0.0 1.4 0.8 0.0 0.0 0.0 0.0 0.0

99

Further Information Consolidated Financial Statements 100 Fraport Annual Report 2013 Consolidated Financial Statements / Segment Reporting

Segment Reporting (Note 41)

€ million Aviation Retail & Ground External Adjust- Group Real Estate Handling Activities & ments Services

2013 845.2 469.0 656.2 591.0 – 2,561.4

Revenue 2012 823.4 452.9 649.3 516.4 – 2,442.0

2013 28.0 13.0 13.0 16.0 – 70.0

Other income 2012 adjusted 40.4 14.4 18.0 27.5 – 100.3

2013 873.2 482.0 669.2 607.0 – 2,631.4

Third-party revenue 2012 adjusted 863.8 467.3 667.3 543.9 – 2,542.3

2013 76.2 235.6 34.6 347.3 – 693.7 –

Inter-segment revenue 2012 73.1 217.3 31.4 338.6 – 660.4 –

2013 949.4 717.6 703.8 954.3 – 693.7 2,631.4

Total revenue 2012 adjusted 936.9 684.6 698.7 882.5 – 660.4 2,542.3

2013 88.1 267.9 – 2.3 174.4 0.0 528.1

Segment result EBIT 2012 adjusted 79.6 252.8 – 1.1 164.7 0.0 496.0

2013 117.3 82.8 40.5 111.5 – 352.1 Depreciation and amortization of segment assets 2012 122.3 82.4 38.9 109.1 – 352.7

2013 205.4 350.7 38.2 285.9 – 880.2

EBITDA 2012 adjusted 201.9 335.2 37.8 273.8 – 848.7

Share of result from associated 2013 0.0 0.0 0.9 – 14.5 – – 13.6 companies accounted for using the equity method 2012 0.0 0.0 1.2 10.5 – 11.7

2013 4,083.5 2,678.5 744.0 1,951.3 66.1 9,523.4

Book value of segments assets 2012 4,142.0 2,670.9 777.6 1,946.4 103.7 9,640.6

2013 2,598.4 1,770.7 550.0 1,322.9 182.6 6,424.6

Segment liabilities 2012 adjusted 2,678.9 1,857.2 566.9 1,401.4 188.0 6,692.4

Acquisition cost of additions to property, plant and equipment, investments in airport operating 2013 207.3 127.2 45.4 95.4 – 475.3 projects, goodwill, intangible assets and investment property 2012 290.6 199.4 86.5 83.1 – 659.6

2013 131.4 31.3 11.2 6.0 – 179.9 Other significant non-cash effective expenses 2012 64.2 32.7 8.3 3.7 – 108.9

Share of associated 2013 0.0 0.0 2.6 118.6 – 121.2 companies accounted for using the equity method 2012 0.0 0.0 2.6 134.0 – 136.6

Table 46 Fraport AnnualReport2013 Geographical information assets andinvestmentproperty projects, goodwill,intangible investments inairportoperating property, plantandequipment, Acquisition costofadditionsto Book valueofsegmentassets

Third-party revenue € million Other income Revenue

2012 adjusted 2012 adjusted 2013 2013 2012 2013 2012 2013 2013 2012

Germany 7,813.7 7,889.6 2,090.4 2,106.1 2,037.9 2,000.9 411.8 614.6 89.5 68.2

of Europe 410.8 377.9 110.8 110.2 44.4 70.1 27.9 69.8 Rest 0.3 0.6

Consolidated FinancialStatements/SegmentReporting 893.9 926.4 171.4 189.7 188.7 164.8 Asia 6.0 6.3 6.6 1.0

of World 338.9 343.0 210.4 224.8 224.6 206.5 13.1 10.8 Rest 3.9 0.2

Adjust- ments 103.7 66.1

– – – – – – – – 9,523.4 9,640.6 2,542.3 2,631.4 2,561.4 2,442.0 Table 47 Group 475.3 659.6 100.3 70.0

101

Further Information Consolidated Financial Statements 102 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

Group Notes for the Fiscal Year 2013

Notes to the Consolidation and Accounting Policies

1 Basis for the preparation of the consolidated financial statements

Fraport AG Frankfurt Airport Services Worldwide, Frankfurt am Main (hereinafter: Fraport AG), has prepared its con- solidated financial statements as at December 31, 2013 in accordance with the standards issued by the International Accounting Standards Board (IASB).

Fraport AG applied the International Financial Reporting Standards (IFRS) for the consolidated financial statements and the interpretations about them issued by the International Financial Reporting Committee (IFRC) as adopted in the European Union (EU), in force on the balance sheet date, completely and without any restriction in accounting, measurement and disclosure in the 2013 consolidated financial statements. Pursuant to Section 315a (1) of the German Commercial Code (HGB), the supplementary disclosures in the notes to the financial statements were provided applying Sections 313, 314 of the HGB.

As the capital market-oriented parent company of the Fraport Group, Fraport AG must prepare its consolidated financial statements in accordance with IFRS pursuant to Directive (EC) No. 1606/2002 of the European Parliament and the Council dated July 19, 2002 (new version dated April 9, 2008), regarding the application of IFRS.

The consolidated income statement is prepared according to the nature of expenditure method.

The consolidated financial statements are prepared in Euros (€). All figures are in € million unless stated otherwise.

The business activities and the organization of the Fraport Group are presented in the management report.

The consolidated financial statements of Fraport AG for the 2013 fiscal year were approved for publication by the Executive Board on March 4, 2014.

2 Companies included in consolidation and balance sheet date

Companies included in consolidation and balance sheet date Fraport AG and all affiliated companies are included in the consolidated financial statements in full and joint ventures are consolidated on a proportionate basis. Associated companies are in the consolidated financial statements accounted for using the equity method.

Companies whose financial and business policies can be determined by Fraport AG are considered as affiliated com- panies. Inclusion in the consolidated financial statements commences on the date when control is obtained. Joint ventures are directly or indirectly managed by Fraport AG in conjunction with other partners. Associated companies are Group companies in which Fraport AG has invested and where it is able to exercise major influence on financial and business policies.

The fiscal year of Fraport AG and all consolidated companies is the calendar year. Fraport AnnualReport2013 in the consolidated as in the statements changed financial followsthe fiscal during year2013: The consolidated statements of financial Fraport AG are dominated the parentby company. Thecompanies included Companies included in consolidation has actualcontrol over companies. these consolidatedincluded inthe statements asaffiliated financial companies. Due tocontractual stipulations, AG Fraport AG amMain,inwhichFraport GmbH,Frankfurt holds40 FSG Flughafen-Service KG, Frankfurt/Main amMain, and Frankfurt mbH &Co.Airport fürCleaningService The companies GCSGesellschaft Anonim Sirketi, Antalya/Turkey. TheGroup-internal process consolidated hasnoimpact onthe statements. financial UluslararasiIC Ictas Insaat Sanayi ve Ticaret Anonim Sirketi, Ankara/Turkey, Havalimani into IC Ictas Fraport Isletme jointventures consolidationofthe The disposalinthe relates to merger, the whichtook placeinDecember2013,of consolidatedon the statements. financial value shares. are companies ofthe that inactive Theinclusionofthe still Group into Fraport hasnomaterial the impact remainingat July 16,2013,the 40 8,2013,50 shares companies took ofthe capital of the place intwo steps: asatJanuary Group Theacquisition andinclusioninthe inSenegal. whichinfuture willoperate S.A., DakarAirport Daport sidiary, The additionsto relate subsidiaries to acquisition ofanadditional90 the Companies consolidatedincludingassociatesonDec.31,2012 Companies consolidatedincludingassociatesonDec.31,2013 Dec. 31,2013 Disposals Additions Dec. 31,2012 Investments inassociatedcompaniesaccountedforusingtheequitymethod Companies consolidatedexcludingassociatesonDec.31,2012 Companies consolidatedexcludingassociatesonDec.31,2013 Dec. 31,2013 Disposals Additions Dec. 31,2012 Joint venturesusingproportionateconsolidation Dec. 31,2013 Disposals Additions Dec. 31,2012 Fully consolidatedsubsidiaries Fraport AG

% hadbeenacquired. Thetotal purchase equated of€90thousand price to fair the Group Notes/totheConsolidationandAccountingPolicies

% of the shares in Afriport S.A. anditssub - S.A. shares% ofthe inAfriport Germany % and33.33 35 35 32 32 24 24 3 0 0 3 7 0 0 7 0 0 1

Other countries % hadbeenacquired andas %, respectively, have been 22 23 19 20 15 13 – 1 3 0 0 3 5 0 6 0 2 0 Table 48 Total 57 58 51 12 13 52 39 37 – 1

6 0 0 6

0

0 2

1

103

Further Information Consolidated Financial Statements 104 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

Fraport AG holds a 52 % capital share of the company N*ICE Aircraft Services & Support GmbH, Frankfurt am Main. The company is only included in the consolidated financial statements on a proportionate basis of 52 % due to joint management and control, which were contractually agreed.

A complete list of shareholdings for the Fraport Group pursuant to Section 313 (2) of the HGB is found at the end of the Group notes.

The joint ventures have the following proportional impact on the consolidated financial position and the consolidated income statement (before consolidation adjustments):

Joint ventures

€ million 2013 2012

Non-current assets 551.7 599.8

Current assets 187.1 152.9

Shareholders’ equity 34.6 –7.2

Non-current liabilities 612.8 667.1

Current liabilities 91.4 92.8

Income 237.4 191.0

Expenses 172.0 161.6

Table 49

3 Consolidation principles

Capital consolidation of all business combinations uses the purchase method.

All identifiable acquired assets and the acquired liabilities, including contingent liabilities, are recorded at fair value on the acquisition date. The acquisition costs for corporate acquisitions correspond to the fair value of the transferred assets and liabilities. Incidental acquisition costs are recorded as expenses as they are incurred. Conditional purchase price payments are recorded at fair value on the acquisition date. Subsequent changes in the fair value of a conditional consideration which is deemed to be an asset or a liability will be recognized either through profit or loss or as a change in other income. Non-controlling interests are valued at fair value or the corresponding proportion of the identifiable net assets of the acquired company. In the case of step-by-step company acquisitions, the shares already held in the acquired company are revalued through profit or loss at fair value on the date that control is obtained.

Goodwill is recorded insofar as the sum of the consideration that is transferred, the amount of all non-controlling interests in the acquired company and an equity that was previously held and revalued on the acquisition date is higher than the balance of the acquired and revalued identifiable assets and the revalued acquired liabilities. If the comparison results in a lower amount, a gain on acquisition at a price below the fair value is recorded after the assigned values are reviewed.

Fraport has included its share of the assets, liabilities and shareholders’ equity (after consolidation) and the income and expense items of joint ventures using proportionate consolidation in the consolidated financial statements.

Associated companies are in the consolidated financial statements accounted for using the equity method. Initial meas- urements of associated companies are carried out at fair value at the time of acquisition, similarly to capital consolidation for subsidiaries and joint ventures. Subsequent changes in the shareholders’ equity of the associated companies and the follow-up of the difference from initial valuation change the amount accounted for at equity. Fraport AnnualReport2013 4 eliminated. consolidatedexpenses andincomeas the statements, internal financial well asincomefrom Group investments are Loans, receivables andother financialcommitmentsbetween andliabilities,contingencies companies includedin Groupposition ofthe would have beennegligible. werestatements minimal. Elimination was waived basedonimmateriality, asset impact onthe sincethe andearnings Inter-company profits andlossesontrade accountspayable betweenthe consolidated companies includedin financial Exchange rates Exchange The following material exchange rates were usedfor currency translation: the directly affecting inequity without profit orloss. are financially, economically andorganizationally independent. Foreign currency translation differences are included andincomearewhereas translated expenses simplifying the atannualaverage exchange rates, companies sincethe companies are translated exchange rate atthe balancesheet onthe date historical exchange andequity rate, atthe functionalcurrency conceptbasis ofthe inaccordance IAS21.Theassets with consolidated andliabilitiesofthe statements ofcompaniesAnnual financial outsideGermany denominated in foreign currencies are translatedthe on translation Currency Income and expenses from sametransactionsIncome andexpenses the and/orevents are recognized sameperiod. inthe can bequantified must reliably. risks have and been transferredthe significantopportunities Inaddition, thebuyer. to rendered, whenitisreasonably probable aneconomic benefitwillbe that service receivedthis benefit andwhen Revenue andother incomeare recognized have inaccordance goods IAS18 whenthe with beendelivered or the Recognition of income and expenses value andderivative oforiginal financialinstruments. exception value fair of the of financial assets available the for sale and throughrecognition profit fair the and loss of the basisofhistoric acquisitionThe consolidated andproduction on with statements are costs, financial drafted consistently Group. throughout the Groupthe statementsThe offinancial are based on accounting and measurementFraport that are policies applied Uniform accounting policies measurement Accounting principles through profit orloss. sheet date takes exchange rate placeatthe balancesheet onthe date. Translation differences weregenerally recorded Measurement resulting ofthe assets are andliabilitiesthat foreign nominally boundinthe balance currency onthe Business transactions inforeign currencies are accounted exchange rate atthe date onthe businesstransaction. ofthe 100 RussianRoubels(RUB) 1 NewSol(PEN) 1 HongKongDollar(HKD) 1 RenminbiYuan (CNY) 1 Turkish NewLira(TRY) 1 USDollar(US-$) Unit/Currency in€

Exchange rate Dec. 31,2013 2.2093 0.2597 0.0937 0.1198 0.3395 0.7264

Group Notes/totheConsolidationandAccountingPolicies

Average exchange rate 2013 2.3620 0.2785 0.0971 0.1225 0.3947 0.7530

Exchange rate Dec. 31,2012 2.4796 0.2971 0.0978 0.1216 0.4246 0.7579

Average exchange rate 2012 2.5046 0.2948 0.1003 0.1234 0.4322 0.7783 Table 50

105

Further Information Consolidated Financial Statements 106 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

Traffic charges for the provision of the airport infrastructure are divided into those subject to regulation (according to Section 19b (1) of the German Air Traffic Act [LuftVG]), which include, among others, landing and take-off charges, parking charges, passenger and security charges and other charges not subject to regulation, such as ground handling services and ground handling infrastructure.

In addition, the Fraport Group mainly generates revenue from revenue-based payments, renting, parking and security services.

In the context of the airport operating projects in other countries (see also note 49), income and expenses from the operation of airport infrastructure and the provision of construction and expansion services are generated.

Revenue from the operation of airport infrastructure is recognized in accordance with IAS 18 when the services have been rendered, when it is reasonably probable that an economic benefit will be received and when this benefit can be quantified reliably.

Income and expenses from the provision of construction and expansion services are recorded pursuant to IAS 11. The order costs are expensed as incurred according to IAS 11.32, since the result of production orders cannot be estimated reliably. Proceeds from production are recorded in the amount of the incurred order costs expected to be recovered.

Judgment and uncertainty of estimates The presentation of the asset, financial and earnings position in the consolidated financial statements depends on accounting and valuation methods as well as assumptions and estimates. Actual amounts may deviate from the estimates.

The listed material estimates as well as the uncertainties associated with the accounting and valuation methods selected are essential in order to understand the underlying risks of financial reporting as well as the impacts these estimates, assumptions and uncertainties may have on the consolidated financial statements.

These assumptions and estimates relate, among other things, to accounting policies and the measurement of provi- sions. Material valuation parameters for the measurement of provisions for pensions and similar obligations are the discount factor as well as trend factors (see also note 37).

When an acquired company is consolidated for the first time, all identifiable assets, liabilities and contingent liabilities are to be recognized at their fair value at the time of acquisition. One of the main estimates relates to the determina- tion of the fair value of these assets and liabilities at the time of acquisition. The measurement is usually based on independent expert reports. Marketable assets are recognized at market or stock exchange prices. If intangible assets are identified, the fair value is usually measured by an independent external expert using appropriate measurement methods which are primarily based on future expected cash flows. These measurements are considerably influenced by assumptions about the developments of future cash flows as well as the applied discount rates.

The impairment test for goodwill and other assets within the scope of IAS 36 is based on assumptions about future developments. Fraport AG carries out these tests annually as well as when there are reasons to believe that goodwill has been impaired. In the case of cash generating units, the recoverable amount is determined. This corresponds to the higher of fair value less costs to sell and value in use. The measurement of the value in use includes adjustments and estimates regarding the forecasting and discounting of future cash flows. The underlying assumptions could change on account of unforeseeable events and may therefore impact the asset, financial and earnings positions. Fraport AnnualReport2013 out inprevious years amountof€ (inthe write-down the In connectionwith onitems ofproperty, Ground plantandequipment inthe Handlingsegmentcarried Where necessary, lossesare impairment recognized inaccordance IAS36. with overdepreciation termconcessions. andamortization the ofthe ofacquisition cost orproduction isatthe lesscumulative rights Subsequent measurement capitalized ofthe regular the effective using cost The recognized financialliabilities are subsequently interest measured atamortized method. are generally recorded pursuant to services IFRIC12.14expansion andinaccordance IAS11. with of productions production and forinwhichthe are from costs period incurred. the Incomeandexpenses construction ing areprojects. received recognized The rights cost at the as consideration services forand expansion construction consideration are operat recorded underinvestments- assets sameamountandreported asintangible atthe inairport liabilities are initially recognized value atfair operation usingarisk-adjusted received rights discountrate. as Airport fees are that not variable butare fixedthe contractthe amountbasedon are in recorded asfinancialliabilities.These pay Thecontractual to obligations pay concessionfees andprovide concession services. andexpansion construction users a receivescharge model, in since exchangeFraport for to obligation in the each case to right the charge airport and/orterminal operating projects underIFRIC12.17 fall airport andare recognized according asset to intangible the concessionagreements for concessionagreements the (seealsonote 49).Theservice scopeofservice the within inVarna Lima(Peru) andAntalyaconcessions forandBurgas (Turkey) (Bulgaria), operations airports the ofthe acquired To allow for better transparency, operating investments projects are presented inairport separately. of Theseconsist Investments operating in projects airport reasonsup whenthe for are impairment eliminated. Goodwillisnot subjectto regular depreciation andamortization. accordance IAS36.88 with valuation model(discounted cashflow method).goodwill items All are tested oncea atleast for impairment year in Group Fraport cashgenerating cannot unitsinthe the bereliably determined, value the inuseisbasedonacompany valuecorresponds tofair higheramountofthe to lesscosts the value sellandthe inuse.Sincenet for sellingprices recoverablethe Therecoverable amount,includinggoodwill. amountofa cashgenerating unitto itscarrying amount bypendent cashgenerating unitsto isallocated. comparing whichgoodwill testing Goodwillimpairment isperformed Groupgenerating acquisition unitsofthe date. onthe Group TheGroup Fraport constitute the companies within inde- testing, ofimpairment acquired purpose goodwill courseofabusinessmergerFor isassignedto the in cash the at acquisitionlessany costs accumulated losses. impairment initialrecognition acquired the ofgoodwill courseabusinessmerger (seealsonote inthe After 3),itismeasured Goodwill for specificend-of-year items listed subsequently. In addition,material estimates andassumptions are eachpresented inrelation to accountingandvaluation the methods deferred assets timethe the tax are recognized. situation infuture fiscal thereforeyears and the actualusabilityofdeferredtax assets coulddiffer thefrom forecasts at Deferred assets tax are recognizedtax earnings ifitisprobable benefitscanbe future that realized.Theactual tax assets. amountsofthese future,tothe whichwould considerably carrying the make adjust itnecessary – 99. In case of an impairment, an impairment lossisrecognized. animpairment 99. Incaseofanimpairment, Goodwillisnot written 20.0 million),itmay bepossiblefor assumptions underlying the to in change Group Notes/totheConsolidationandAccountingPolicies 107

Further Information Consolidated Financial Statements 108 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

Intangible assets Acquired intangible assets (IAS 38) are recognized at acquisition cost. Their useful life is limited. They are amortized over their useful lives using straight-line depreciation and amortization. Where necessary, impairment losses are recognized in accordance with IAS 36. If the recoverable amount of the asset later exceeds the carrying amount after an impairment loss has been recognized, the asset is written up to a maximum of the recoverable amount. The write-up through profit or loss is limited to the amortized carrying amount that would have resulted if no impairment loss had been recognized in the past.

Property, plant and equipment Property, plant and equipment (IAS 16) are recognized at the cost of acquisition or production less straight-line depreciation and amortization and any impairment losses according to IAS 36, where applicable. If the recoverable amount of the asset later exceeds the carrying amount after an impairment loss has been recognized pursuant to IAS 36, the asset is written up to a maximum of the recoverable amount. The write-up through profit or loss is limited to the amortized carrying amount that would have resulted if no impairment losses had been recognized in the past. Subsequent acquisition costs are capitalized. Production costs essentially include all direct costs including appropri- ate overheads. Borrowing costs of property, plant and equipment that constitute qualifying assets are recognized (see “borrowing costs”).

Each part of an item of property, plant and equipment with an acquisition cost that is significant in relation to the total value of the item is measured and depreciated separately with regard to its useful life and the appropriate deprecia- tion method.

Government grants and third-party grants related to assets are included in liabilities and are released straight-line over the useful life of the asset for which the grant has been given. Grants related to income are included as other operating income through profit or loss (IAS 20).

Investment property Investment property (IAS 40) includes property held to earn long-term lease revenue or capital appreciation, which is not owner-occupied; it also consists of land held for a currently undetermined future use.

If land as yet held for an undetermined use is now defined as being held for sale and development has begun, it is transferred to inventories; if it is intended for owner-occupation, it is transferred to property, plant and equipment.

Investment property is measured initially at the cost of acquisition or production. Subsequent measurement is at the cost of acquisition or production less regular straight-line depreciation and amortization and impairment losses according to IAS 36, where applicable. Borrowing costs of investment properties that constitute qualifying assets are recognized (see “borrowing costs”).

Borrowing costs Borrowing costs (IAS 23) that relate to the acquisition, construction or production of a qualifying asset are required to be capitalized as part of the acquisition/production cost of such assets. Due to the scope of Fraport’s capital expendi- ture, qualifying assets are determined on the basis of planned investment measures. If the volume of the planned measures exceeds €25 million and if the construction period is more than one year, all assets produced as part of the measure are recognized as qualifying assets. Fraport includes interest, financing charges in respect to finance leases and currency differences in borrowing costs to the extent that they are regarded as an adjustment to interest costs. Fraport AnnualReport2013 Regular depreciation and amortization risks associated respective the with risks leasedasset. and the opportunities bears to lessor(operate the lessee(financelease) ismadebasedonwhichparty lease)orthe are deemedto isboth alessorandlessee.Adecisionasto beleases.Fraport whether economicownership isassigned Agreements transfer that to right useaspecificasset the oftimein for aspecifiedperiod exchange for compensation Leasing seperate cashinflows andoutflows. units are recognized. identifiable the smallest Acashgeneratinggroup ofassets unitisdefinedas generates that Since itisnot Group generally Fraport to possibleinthe allocate cashflows to individualassets,generating so-calledcash Regardless ofindicators for losses,assets possibleimpairment are subjectto test anannualimpairment pursuantto IAS36. asset.subsequent disposalofthe value inuse.Thevalue present inuseisthe value estimated ofthe future cashinflows andoutflows theuseand from amount.Therecoverable belowfallen itscarrying higherofanasset’s amountisthe value fair to lesscosts sellandits tions of an loss. impairment An loss impairment is recognized for assets recoverable when the asset amount of the has lossesonassetsImpairment are recognized according to IAS36.Assets are tested for incase ofindica- impairment Impairment losses according of property, plantandequipment. The expected usefullife whichispart ofinvestment corresponds to expected usefullife the property ofthe property Regular depreciation and amortization lives, whichapply Group: throughout the isdetermined byRegular depreciation straight-line andamortization the methodfollowing basisofthe onthe useful Other equipment,operatingandofficeequipment Vehicles Other technicalequipmentandmachinery Flight operatingareas Ground equipment Building equipment Technical buildings Buildings (structuralsections) Other intangibleassets Investments inaiportoperatingprojects Years Taxiways Taxiway bridges Aprons Take-off/landing runways to IAS 36 to IAS Group Notes/totheConsolidationandAccountingPolicies Table 51 12 –38 20 –40 30 –80 17 –35 4 –25 4 –20 3 –33 5 –50 3 –25 20 80 50 20

109

Further Information Consolidated Financial Statements 110 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

Finance lease If economic ownership can be attributed to the Fraport Group as lessee, the lease is capitalized at the inception of the lease at the present value of the minimum lease payments plus any incidental costs that are paid or at the fair value of the lease object if this value is lower. This asset is depreciated straight-line over its useful life or the lease term, if this is shorter. Impairment losses are recorded against the carrying amount of the capitalized leased asset. If economic ownership cannot be attributed to the Fraport Group as the lessor, a receivable equivalent to the present value of the lease payments is recognized.

Operate lease If economic ownership of the leased assets remains with the lessor and Fraport AG assumes the role of the lessee, lease payments are considered on a linear basis over the lease term. If Fraport assumes the role of the lessor, leased assets are capitalized at the cost of acquisition or production and amortized accordingly. Lease revenue is generally recognized on a linear basis over the lease term.

Investments in associated companies Investments in associated companies are recognized at the pro rata share of equity, including goodwill.

Other financial assets Other financial assets include securities, loans with a remaining maturity of more than one year and other investments. Other financial assets are recognized at fair value on the settlement date, i.e. at the time the asset is created or trans- ferred plus transaction costs. Non-current low interest or interest-free loans are recognized at their present value. The securities virtually exclusively constitute debt instruments.

The subsequent measurement of financial assets depends on the respective category according to IAS 39 (see also note 40).

Loans are assigned to the “loans and receivables” category. These financial instruments are measured at amortized costs using the effective interest method.

Other investments are assigned to the “available for sale” category on the balance sheet date. Due to a lack of an active market, they are generally measured at acquisition cost. They will be assigned at fair values as long as they can be reliably calculated and the gains or losses are included directly in equity without affecting profit or loss.

Other securities are assigned to the “available for sale” category. Subsequent measurement is at fair value, taking into account the effective interest method and changes in value are included directly in equity without affecting profit or loss.

Inventories Inventories include work-in-process, raw materials, consumables and supplies and property held for sale within the normal operating cycle.

Work-in-process and raw materials, consumables and supplies are measured at the lower of acquisition or production cost or net realizable value. Acquisition or production costs are generally calculated using the average cost method. Production costs include direct costs and adequate overheads.

Property held for sale within the ordinary course of business is also measured at the lower of acquisition or production cost or net realizable value. Fraport AnnualReport2013 If awrite-down madeinprevious necessary, isnolonger periods awrite-up isrecognized (IAS2). Where inventories the constitute qualifying assets (see“borrowing costs”), borrowing the are costs recognized. land sales,formsbasisfor estimated the calculationofthe sellingprice. the regarding value fair landbeingsold,aswell the ofthe asinformation aboutprevious expert The opinionofanexternal over plannedsellingperiod. the be sold.Net realizable timeofsale,discounted value incurred untilthe costs estimated lessthe isthe sellingprice respective year,the reporting development the are costs allocated onapro basisto rata remaining the landarea to unit basisofspecificcost the rates for individual development measures.the landsales Dependingon recognized in The subsequent production required cost for land development is estimated for entire the marketable land area on at the exchange rateat the balancesheet onthe date. Cashandcashequivalentsdeduction for are risk. recognized atnominalvalue. Cashinforeign currencies istranslated are recorded item inthis values iftheir donot fluctuate they significantly and canbeliquidatedwithout at any time orless. Cash andcashequivalentsmonths of more from three amaturity time months of acquisition than with the inthree maturing cashassets banks Cash andcashequivalents with basically includecash,cashaccountsandshort-term equivalents cash and Cash derecognized. up isrecognized through profit orloss.Ifa receivable already impaired isdesignated asnon-recoverable,the asset is reasonsawrite- the foror loss.Ifthere that isanindicationinsubsequent exist, periods loss nolonger animpairment lossoftradeThe impairment accountsreceivable isrecognized inanitem-by-item allowance accountthrough profit asset. receivableIn general, lossesare impairment amountofthe recognized financial by orthe directly reducing carrying the asset the that cost) may beimpaired.amortized debtor,the high probability of insolvency debtor, proceedings the against value fair decline of the a permanent below profit orlossare assessed to seewhetherthere isany objective evidence (suchasconsiderable financial difficultiesof amountsoffinancialassets whichare notOn eachbalancesheet measuredfair date, at through carrying value the assets financial of Impairment losses according to effective the interest method. ofChanges value are included directly in equity without affecting profit or loss. areSecurities allocated to “available the for sale”category. are measured Thefinancialdebtinstruments fair at value, exchange rateat the balancesheet onthe date. cost, based on effective the outis at carried amortized interest method. Receivables in foreign currencies are translated arethat not listed in an active market are assigned to “loansand receivables” the category. Subsequent measurement Trade accountsreceivable, receivables andallother financial fromreceivablespayments banks fixed with orascertainable oracquisition. time oforigination transferred. Non-current low interest ornon-interest receivables bearing are recognized present attheir value atthe value, sameasfair usually settlement the onthe date, asset timethe i.e.atthe iscreated oreconomicownership is derivatives Theseassets securities. are andmarketable initially recognized whichis cost, ataqcuistion short-term Receivables andother assets mainlyoftrade consist accountsreceivable, receivables other receivables, from banks, assets other and Receivables Group Notes/totheConsolidationandAccountingPolicies

111

Further Information Consolidated Financial Statements 112 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

Treasury shares Repurchased treasury shares are deducted from the issued capital and the capital reserve (IAS 32).

Recognition of income taxes Income taxes are recognized using the liability method according to IAS 12. All tax expenses and refunds directly related to income are recorded as income taxes. These also include penalties and interest on arrears from the date it appears probable that a reduction of taxes will be denied.

Current taxes are recognized on the date when the liability for income taxes is incurred.

Deferred taxes are accounted according to IAS 12 using the liability method based on temporary differences on a case by case basis. Deferred taxes are recognized for temporary differences between the IFRS and tax financial positions of the single entities and differences arising from unused loss carry-forwards and consolidation transactions. The recognition of goodwill that is not deductible for tax purposes does not lead to deferred taxes.

If the carrying amount of an asset in the IFRS financial position exceeds its tax base (e.g. non-current assets depreciated on a linear basis) and if the difference is temporary, a deferred tax liability is recognized. According to the IFRS deferred tax assets are recognized for financial position differences and for unused tax loss carry-forwards, to the extent that it is probable that taxable profit will be available against which the unused tax losses and unused tax credits can be utilized.

Deferred taxes are calculated at future tax rates insofar as these have already been legally established and/or the legis- lative process is largely completed. Changes in deferred taxes on the financial position generally lead to deferred tax income or expense. When transactions resulting in a change to deferred taxes are recorded directly in equity without affecting profit or loss, the change to deferred taxes is also included directly in equity without affecting profit or loss.

Provisions for pensions and similar obligations The provisions for pensions relate to defined benefit plans and have been calculated in accordance with IAS 19 under the application of actuarial methods and an interest rate of 3.60 % (previous year: 3.17 %). For the calculation of the interest expense from the defined benefit plans and the income from plan assets, the same interest rate is used as a basis. In comparison to the previous year, changes occurred to the standard due to IAS 19 (revised 2011). Net interest expense/income was introduced, which prescribes the use of the same interest rate for the interest expense and for income from plan assets. At Fraport, the same interest rate was already used for calculating the interest expense and income from plan assets in previous years.

Remeasurements, which result from the change of the discount factor or from the difference between actual and com- puted income from plan assets, for example, are recognized in other comprehensive income (OCI) as non-reclassifiable.

The present value of the defined benefit obligation (DBO) is calculated annually by an independent actuary using the projected unit credit method. The calculation takes place by discounting the future estimated cash outflows with the interest rate from industry bonds of the highest creditworthiness. The industry bonds are denominated in the currency of the distribution amounts and show the relevant maturities of the pension liabilities. If benefit claims from the defined benefit plans are covered by plan assets in the form of reinsurance, the fair value of the plan assets is netted with the DBO. Benefit claims that are not covered by plan assets are recognized as a pension obligation. Fraport AnnualReport2013 With regardWith to various description ofthe the plans,reference ismadeto note 37andnote 52. andnet cost interest are recognizedThe service inpersonnelexpense. ofProfessor tables Heubeck. pensions was 2005Gmortality basedonthe von undVersorgungsbezügen Dienst- 2003/2004”(BBVAnpG). inBundundLändern Thecalculationofprovisions for For formerExecutive membersofthe Board pensionsare valued inaccordance “Gesetz ofthe überdieAnpassung previousAs inthe year, increases for active the Executive calculationsdidnot membersofthe the includesalary Board. basis. Ineffective cash flow hedges arestatement through recorded theincome in profit orloss. shareholders’ affecting equity without profit orloss.The effectiveness thecash of hedges isassessedon flow aregular affecting profit orloss.Corresponding this,deferred taxes to fair the on valuesofcash flow hedges arealsoincludedin of value IAS 39. Changes ance with on cash flow are hedges recorded without the for financial ininstruments reserve Derivativerate positive with risks. financial instruments or negative market values are measuredfair at value in accord- GroupThe Fraport basically uses derivative andfutureexisting interest exchangeto hedge financial instruments and Derivative financial instruments, hedging transactions Subsequent measurementthe effective offinancialliabilitiesisbasedon cost. interest atamortized method valuefair leasedasset. ofthe lowerFinance atthe leaseliabilitiesare reported value present ofthe value minimumleasepayments ofthe andthe or non-interest-bearing present attheir value liabilitiesare timeofaddition. carried atthe Liabilities inforeign currencies are translated exchange rate atthe balancesheet onthe date. Non-current low interest Liabilities are consideration recognized amountofthe received inthe received andthe consideration, respectively. Liabilities active endofthe untilthe passive the phase.Theutilizationbeginswith ininstallments added to obligation phase. the withdraw nolonger andfactually canlegally timewhenFraport atthe from liability. the starts Thestep-up amountsare The provision retirement for isrecognized partial according to IAS19R.Therecognition liabilityfrom ofthe step-ups maturity, future increases cost taking into account,provided interest the that effect ismaterial. Non-current provisions terms with ofmore oneyear than are discountedmarket atacapital interest rate amatching with certain. realizationtheir isvirtually Refund claimstowards separately are capitalized from provisions third the parties as“other receivables”, provided that cash outflow andmore likelythan not beneeded to settle (IAS37). the obligation In addition, they result be the must event,there of apast that is acurrent commitment to third parties. lead to a future provisionsOther are recognized amount required in the to settle They obligations. the are recognized to extent the provisionsOther into accountanticipatedtaking risks. Provisions for current taxes are recognized forexpected to tax bepayable year and/orprevious reporting inthe years taxes for Provisions Group Notes/totheConsolidationandAccountingPolicies

113

Further Information Consolidated Financial Statements 114 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

If the criteria for a cash flow hedge are not met, the derivative financial instruments are allocated to the “held for trading” category. In this case, the changes in the fair value and the related deferred taxes are recognized through profit or loss in the income statement.

Derivative financial instruments are recognized at the trade date.

Stock options The subscription rights issued on shares of Fraport AG in connection with the contingent capital have been recog- nized and measured in accordance with IFRS 2. Performance takes place by issuing shares. The measurement of the share-based payments is based on fair value on the date the option is granted. The cost of the payment is allocated as personnel expense over the period during which employees have an unrestricted claim to the instruments.

Virtual stock options Virtual stock options are being issued since January 1, 2010 as part of compensation for the Executive Board and Senior Managers. This virtual stock options program (“Long-term Incentive Program”) replaces the previous stock options program (Fraport Management Stock Options Plan 2005). They are paid out in cash immediately at the end of the performance period of four years. The measurement of virtual shares is at fair value according to IFRS 2. Up to the end of the performance period, the fair value is determined on each reporting date and on the date of performance and is recorded in personnel expense on a pro rata basis.

New standards, interpretations and changes Of the new standards, interpretations and changes, Fraport generally applies those for which application was man- datory; i.e. those applicable to fiscal years beginning on or before January 1, 2013.

On June 16, 2011, the IASB published changes to IAS 1 “Presentation of Financial Statements”. Therefore, the way other result is presented in the statement of comprehensive income is to be changed. Going forward, the other result items that will be subsequently reclassified to profit and loss (recycling) should be kept separate from the other result items that will not be reclassified. If the items are shown gross i.e., without netting with an effect on deferred taxes, the deferred taxes may no longer be shown as one total; instead, they should be allocated to both groups of items. The amendment was adopted under EU law on June 6, 2012 and is applicable for the first time for fiscal years starting on or after July 1, 2012.

On June 16, 2011, the IASB published a revised version of IAS 19 “Employee Benefits”. The amendments were adopted under EU law on June 6, 2012 and are applicable for the first time for fiscal years starting on or after January 1, 2013. The previous option of recognizing actuarial gains and losses between immediate recognition in the profit and loss statement, in other income or delayed recognition according to the corridor approach, was abolished. With the revision of IAS 19, the actuarial gains and losses must be reported directly under other comprehensive income (OCI) as remeasurements.

According to the amended standard, return on plan assets is recognized on the basis of standardized interest on the plan assets at the level of the current discount rate of the pension obligations and recognized together as net interest expense/net interest income. The calculation of the interest expense and interest income from the plan assets with the same interest rate was already applied at Fraport AG. Fraport AnnualReport2013 takes transition the placeincompliance regulations. with active initialapplicationofIAS19are shown below. table inthe revised Theinitialapplicationofthe version ofIAS19 tothepreviousThe adjustments openingfinancialpositionand the year’sstatement financial resulting thefrom retro- regardWith to comprehensive the additionaldisclosure new dutiesofthe IAS19,seenote 37. activeThe step-up endofthe untilthe amountsare addedto phase. liabilityininstallments the withdraw nolonger andfactually canlegally time whenFraport atthe from liability. the liability from step-ups starts be recognizedno longer as “Termination Benefits”, but as “Long-Term Employee Benefits”. The the recognition of retirement amendmentsto basisofthe step-up onthe IAS19, payments provisionsFurthermore, partial ofthe may Effects of the retrospective application of IAS 19R IAS of application retrospective the of Effects to oldversion. the ment ofcomprehensive incomewould have continuedto berecognized profit inthe statement according andloss that aresubordinated pensionplans presentedstate- the significance.The in remeasurements ofperformance-based For fiscal the differencesyear 2013, between theold IAS19Rand used, versionofIAS19,whichisnolonger are of € million

Adjustments inconsolidatedfinancialposition Other provisions Deferred taxliabilities Revenue reserves Equity attributabletoshareholdersofFraportAG Adjustments inconsolidatedincomestatement Other operatingincome Personnel expenses Taxes onincome Group result Earnings per€10sharein€

of comprehensiveincome Adjustments inconsolidatedstatement Remeasurements ofdefinedbenefitplans to profitorloss Items thatwillnotbereclassifiedsubsequently Comprehensive income

non-current of FraportAG thereof profitattributabletoshareholders basic diluted thereof deferredtaxes thereof attributabletoshareholdersofFraportAG

reported Dec. 31, 1,400.5 2,909.8 – 947.8 – 114.5 215.1 101.3 251.6 238.3 209.7 196.7 2012 62.7 2.59 2.58 0.0 0.0 0.0

adjusted Dec. 31, 1,403.2 2,912.5 – 942.9 – 112.6 211.2 102.5 251.5 238.2 203.3 190.3 2012 55.8 2.59 2.58 – 7.1 – 6.3 0.8

Group Notes/totheConsolidationandAccountingPolicies

Adjustment – 3.9 – 6.9 – 0.1 – 0.1 – 7.1 – 6.3 – 6.4 – 6.4 1.2 2.7 2.7 4.9 1.9 0.0 0.0 0.8

reported 1,317.9 2,821.4 Jan. 1, 214.8 106.9 2012

adjusted 1,327.0 2,830.5 Jan. 1, 201.8 110.8 2012

Adjustment Table 52 – 13.0 3.9 9.1 9.1

115

Further Information Consolidated Financial Statements 116 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

On December 16, 2011, the IASB published amendments to IAS 32 and IFRS 7. The amendment to IAS 32 clarified the requirements for the offsetting of financial instruments. The definition of the current legal right to offsetting has been explained and clarified by the amendment. It sets out which gross settlement procedures (in relation to standards) can be accounted for as net settlements. Given this clarification, the regulations regarding the disclosures in notes have also been expanded in IFRS 7. The amendments to IAS 32 are to be first applied to fiscal years starting on or after January 1, 2014. The amendment to IAS 32 will not have a material impact on the reporting of the asset, financial and earnings position of the Fraport Group. The amendments to IFRS 7 are to be first applied to fiscal years starting on or after January 1, 2013. The adoption of both amendments under EU law took place on December 29, 2012. The application of the amendments to IFRS 7 did not have an impact on the reporting of the asset, financial and earnings position of the Fraport Group.

The standard IFRS 13 “Fair Value Measurement” was published on May 12, 2011. IFRS 13 sets out, in a single standard, uniform measurement bases to measure fair value. There will be further regulations only for IAS 17 and IFRS 2. According to IFRS 13, fair value is defined as the price that would be received through selling an asset or the price paid to transfer a liability. As currently known from the fair value hierarchy of IFRS 7, a three-tiered hierarchy system will be introduced, that will be ranked according to observable market prices. The new fair value measurement may lead to different values compared to the previous system. The new standard is to be first applied to fiscal years starting on or after January 1, 2013. The application of IFRS 13 did not have a material impact on the reporting of the asset, financial and earnings position of the Fraport Group.

On May 17, 2012, the IASB published the “Improvements to IFRS 2009 – 2011” (Annual Improvements), which amended five International Financial Reporting Standards (IFRSs). These changes affect the following regulations: IFRS 1 relating to borrowing costs, IAS 1 for details of comparative information from previous years, IAS 16 regarding the accounting principles for spare parts and maintenance equipment, IAS 32 regarding the accounting principles for tax effects on distributions to equity shareholders and transaction costs of an equity transaction and IAS 34 regarding segment information for the total assets and liabilities within the interim financial reporting. The amendments came into force for the reporting year that begins on or after January 1, 2013. The Improvements to IFRS 2009 – 2011 did not have a material impact on the reporting of the asset, financial and earnings position of the Fraport Group.

On December 20, 2010, the IASB published amendments to IAS 12 “Income Taxes”. This is an amendment in regard to calculating deferred taxes on investment property recognized at fair value (IAS 40.33). The amendments are to be first applied in fiscal years starting on or after January 1, 2013. In the Fraport Group, investment property is recognized according to the acquisition cost model (IAS 40.56). The amendments to IAS 12 do not impact the asset, financial and earning position of the Fraport Group.

On May 29, 2013, the IASB published “Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)”. With the amendments, on the one hand, with IFRS 13, fair value measurement, recently introduced disclosure requirements in IAS 36 will be corrected, while on the other hand, minor adjustments will take place to the disclosures required when an impairment loss or write-up exists and the recoverable amount has been determined on the basis of the fair value less disposal costs. The amendments to IAS 36 are to be first applied on a mandatory basis in fiscal years starting on or after January 1, 2014, however earlier application is permitted. The application must take place retrospectively, however, only for reporting periods in which IFRS 13 already applies. The amendment was first adopted into EU law on December 20, 2013. The amendments will not have a material impact on the reporting of the net asset, financial and earnings position of the Fraport Group. The change was voluntarily applied in the Fraport Group as at January 1, 2013. The amendments have not had an impact on the reporting of the asset, financial and earnings position of the Fraport Group. Fraport AnnualReport2013 financial statements arefinancial assessedpresently. the until futurespecified, the Group’seffects on fiscal thereUnless years, application.Fraport willbenoearly otherwise followingFor the new andinterpretations, oramendedstandards Group Fraport isnot whichthe to obliged adopt prematurely applied been not have which Standards asset, position. financialandearnings associated interests andthe with nature inother entitiesaswell ofandrisks effects asthe those interests of the on allowstatements usersoffinancial the the quantitativeto find and qualitative informationthey require to evaluate the more extensive compared to previous the requirements of IAS27,28and31.Theobjective ofIFRS12isto and associated companies aswell asunconsolidated entities.Therequired structured disclosures are considerably IFRS 12 “Disclosure of Interests Entities” in Other disclosure the summarizes regulations for joint ventures subsidiaries, (see note 2)aswell report’s management businessoutlookinthe asinthe OutlookReport. application ofIFRS11are covered “influenceofjoint venturesstatements”the consolidated report on inthe financial havethe asset, of position.The financialandearnings thefutureeffects of the future asignificantimpact on reporting equity method useofthe for jointventures compulsory consolidationandthe will The abolishmentofproportionate solidation to equity method. the Currently, alljointventures have Group. Fraport inthe beenincludedproportionally for jointventures istherefore inapplicable. There are specifictransitionrules the transition con- for from proportionate associated companies willhave to beaccounted for consolidation equity method. usingthe Theuseofproportionate adoptionthe of IFRS 11 will significantly increasethe itsfuture scope, as in all joint ventures and not investments just in were alsomadeto IAS28.Like before, IAS28continuesto regulate equity method. applicationofthe the However, consolidation willresult from future the applicationofIFRS10.Whileadopting IFRS11“JointArrangements”, adjustments Group, to Fraport scopeof nochanges Inthe the entitiescanarise. including, amongotherspecialpurpose things, returnsthese its decision-making powers. with From effectsextent standard, this the scope of consolidation on of fromon voting positive itparticipates orother ornegative rights, andcaninfluence variable returns from subsidiary the control that states isgiven potential ifthe parent company decision-makingpower holdsthe over subsidiary, the based thestatements underfinancial IFRS. In revisedthe IFRS 10, “control”term has been comprehensively redefined. It now regulations the onaccounting forwill onlyjointventures contain subsidiaries, andassociated companies in separate Entities”.“Consolidation –SpecialPurpose future, new Inthe the IAS27“Separate Financial Statements” (revised 2011) IFRS 10 replaces consolidationthe guidelines in IASthe 27 “Consolidated and Separate Financial Statements” and SIC 12 1,2013. date ofJanuary initial application for EU IFRS adopters EU endorsement. The mandatory thereforeafter deviates from IASB effective the applicationwould Early bepermitted 1,2014.(Voluntary) for new these consolidationstandards January on orafter “Investments inAssociates andJointVentures” into EUlaw. are Thestandards to appliedinfiscal befirst starting years Arrangements”, IFRS12“Disclosure ofInterests Entities”, inOther IAS27“Separate Financial Statements” andIAS28 EUCommissionadoptedOn December29,2012,the IFRS10“Consolidated Financial Statements”, IFRS11“Joint Joint Ventures” (revised 2011). Entities”,in Other IAS 27 “Separate Financial Statements” (revised 2011) and IAS 28 “Investments in Associates and follows: IFRS10“Consolidated Financial Statements”, IFRS11“JointArrangements”, IFRS12“Disclosure ofInterests and accountingofassociated companies andjointventure investments associated andthe disclosures. Theseare as On May IASBpublishedfive 12,2011,the new and revisedthe the consolidation that amend regulations on standards EU Commission the by law European into Standards, interpretations and amendments published and accepted Group Notes/totheConsolidationandAccountingPolicies

117

Further Information Consolidated Financial Statements 118 Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies

On June 28, 2012, IASB published amendments to the transitional provisions of IFRS 10, 11 and 12. The amendment clarifies that the date of the initial application of IFRS 10 is the start of the reporting period in which the standard is first applied. In addition, the mandatory disclosures of IFRS 12 are only applicable to the immediately preceding period. Structured companies that are not consolidated are released from the obligation to disclose comparative information for periods prior to the first application of IFRS 12. The amendments are to be applied in fiscal years starting on or after January 1, 2014. The amendments were first adopted into EU law on April 5, 2013.

On October 31, 2012, the IASB published the standard “Investment Entities” as a further amendment to IFRS 10, IFRS 12 and IAS 27. The amendments include the definition of terms for investment entities, exempt these investment companies from the scope of IFRS 10 and provide for mandatory disclosures for investment entities. Investment companies are exempted from the mandatory inclusion of the companies controlled by them in their consolidated financial statements. Instead, the shareholdings held for investment purposes shall be valued at fair value through profit and loss. The new regulations are to be first applied in fiscal years starting on or after January 1, 2014. Earlier application is permitted. The amendments were first adopted into EU law on November 21, 2013. The amendments will not have an impact on the reporting of the asset, financial and earnings position of the Fraport Group.

On June 27, 2013, the IASB published amendments to IAS 39 “Novation of Derivatives and Continuation of Hedge Accounting”. The new regulations envisage that a change of the contracting party of a hedging instrument to a central counterparty or a member of a central counterparty does not lead to a termination of the hedge accounting under certain circumstances. Therefore, the hedging relationship can now also be maintained in the event of novation as a result of the introduction of laws. The application of the new regulations is mandatory for fiscal years beginning on or after January 1, 2014, retrospectively. Earlier application is permitted. The amendment was first adopted into EU law on December 20, 2013. The amendments will not have an impact on the reporting of the asset, financial and earnings position of the Fraport Group.

Standards, interpretations and amendments that have been published but not yet adopted into European law by the EU Commission On November 12, 2009, the IASB published IFRS 9 “Financial Instruments: Classification and Measurement” and on October 28, 2010, it released amendments to the standard. The accounting and measurement of financial instruments according to IFRS 9 will replace IAS 39. In the future, financial assets will be categorized and measured in two groups only: at amortized cost and fair value. The amortized cost group of financial assets comprises those financial assets that are only expected to give rise to interest and redemption payments on specified dates and that will, in addition, be held in the context of a business model with the objective of retaining assets. All other financial assets will form the fair value group. Under certain circumstances, financial assets in the first category may – as before – instead be designated as fair value (fair value option). Value changes of financial assets in the fair value group are to be generally recognized in profit or loss. For particular equity instruments, it is possible to exercise the right to recognize value changes under other income. Claims for dividends from these financial assets are, however, to be recognized in profit or loss. The regulations for financial liabilities are covered principally by IAS 39. The most significant difference concerns the reco- gnition of value changes in designated financial liabilities measured at fair value. In the future, these will be divided as follows: The part apportionable to own credit risk is to be recognized under other income, while the remaining part of value changes is to be recognized in profit or loss. Subject to its adoption into EU law, IFRS 9 is to be first applied in fiscal years starting on or after January 1, 2015. Fraport AnnualReport2013 On December 12, 2013, the IASB published the “Improvements IASBpublished the On December12,2013,the to IFRS2010 Group. asset,the of the positionof financialandearnings Fraport application ispermitted. July 1, 2014. Earlier The amendments willnot haveafter amaterial reporting impact onthe defined asa fixed percentage rate of annual salary. Theamendments onor are to beapplied to fiscal starting years are includeamountsthat these For example, isindependent from numberofyears contributions the of the ofservice. was amount that ifthe Thisaccountingpracticecost rendered canbemaintained respective inthe ofservice. period (old version), nominalamountofemployee the was contributions frequently deductedfrom service period the in the are recorded accountingby inthe companyapplicationofIAS19 the with past, commitment.Inthe issuingthe howclarifies that are contributions paid the employeesby components themselves third (or the service for parties) On November to IASBpublishedchanges IFRS19“DefinedBenefitPlans: 21,2013,the Employee Contributions”. This Group. Fraport positionofthe and earnings 1,2014.Theamendmentswillnot have asset, ofthe financial January reporting animpact onthe onorafter starting gives to payment rise the liability. Subjectto itsadoption into EUlaw, IFRIC21isto applied befirst to fiscal years According tothe IFRIC21,aliabilityisrecognizedstatements assoon annualfinancial inthe event occurs,which regulates accountingfor payment liabilitiesfor public levies, whichare not levies senseofIAS12“Income Taxes”. inthe On May IASBpublishedaninterpretation 20,2013,the onaccountingfor publiclevies, IFRIC21.Theinterpretation assessed. The effectsthe new of IFRS9statementsthe consolidatedregulation on of financial AG Fraport are currently stillbeing available. Anendorsementby EUisalsoonly anticipated the time. atthat 1,2015.Anew timeforstandard is the full initialapplicationwillonly bedefinedonce January onorafter starting IASBhasrevokedrelationships. Furthermore, pointintimepreviously the inIFRS9for contained itsinitialapplication newcontain regulations regarding form accountinginthe ofanew hedge general modelfor accountingfor hedging On November to IASBpublishedchanges IFRS9“Financial 19,2013,the Instruments”. TheamendmentsinIFRS9 1,2015. EU law,after January onor amendmentsare the to applied befirst to fiscalstarting years applicationofIFRS9 first-time the to recognition and Subject theiradoption to valuation offinancialinstruments. into accordance timeoftransition. IFRS7atthe Thisshouldmake with itpossiblefor investors to effects assessthe the of The simplification leads to additionaldisclosures having the notesto bemadein statements in the annualfinancial to Transition Disclosures”. There are to to benoadjustments previous year figuresapplicationofIFRS9. the first-time in Effective amendments toOn IASB December published 16, the 2011, the IFRS 9 and IFRS 7 “Mandatory Date and of the IFRS2010 of the 2011 financial statements of Fraport statements of financial Fraport AG are currently beingassessed. new 1,2014.Theimpact ofthe regulations consolidated on the January years beginonorafter for that reporting the constitutes regulations the amerger ofIFRS3beingrelevant. combination,with Theamendmentscomeinto force exception, andIFRS40regardingportfolio answering questionofwhether the acquisition ofinvestment the property from applicationscopefor the jointventures, IFRS13inrelation to applicationscopeofwhatisknown the asthe period”,that areexceptiondefinition inIFRS1.7of“all IFRS3in the the the endofrespect reporting valid at The amendmentsto “Improvement the IFRS2011 ofthe ofcumulative adjustment depreciationand IAS38regarding remeasurement whenusingthe proportional the method. of “related companies”the interpretation anditsinfluenceon in the of“membersmanagement term key positions” ofcumulativeonal adjustment depreciation remeasurement whenusingthe method, IAS24regarding definition the assets, IFRS13regarding omissionofdiscountingcurrent receivables the - andliabilities,IAS16regarding proporti the disclosures inrelation to merger ofbusinesssegmentsandregarding the reconciliation the ofsegmentassets to Group regarding accountingofconditionalpurchase the payments price for company acquisitions, IFRS8regarding notes – 2013” (AnnualImprovements), whichwillamendatotal ofeleven IFRSs.Theamendmentsto “Improvement the – 2012” relate to following the in detail: IFRS1regarding definitionof“vesting the conditions”,3 IFRS – 2013” relate to following the indetail: IFRS1regarding the Group Notes/totheConsolidationandAccountingPolicies – 2012” and“Improvements to IFRS 119

Further Information Consolidated Financial Statements 120 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Income Statement

Notes to the Consolidated Income Statement

5 Revenue

Revenue

€ million 2013 2012

Aviation

Aiport charges 697.2 673.6

Security services 97.9 98.3

Other revenue 50.1 51.5

Total 845.2 823.4

Retail & Real Estate

Real Estate 180.2 175.2

Retail 198.5 179.8

Parking 75.1 73.5

Other revenue 15.2 24.4

Total 469.0 452.9

Ground Handling

Ground handling services 393.7 393.3

Infrastructure charges 262.5 256.0

Total 656.2 649.3

External Activities & Services 591.0 516.4

Total 2,561.4 2,442.0

Table 53

Information on revenue can be found in the management report under chapter “Results of Operations” as well as the segment reporting (see also note 41).

The segment Retail & Real Estate includes revenue from operate leases. The revenue-related surface rentals recognized in the fiscal year amount to € 167.6 million (previous year: € 175.5 million).

The operate leases mainly relate to the leasing of buildings, land, terminal areas and offices. The contract periods end in 2070 or earlier. No purchase options have been agreed upon. As in the previous year, the residual term of hereditary building rights contracts was 46 years on average. No purchase options exist for these, either.

The acquisition and production costs of the leased buildings and land amount to € 418.7 million (previous year: € 423.2 million). Accumulated depreciation and amortization total € 285.1 million (previous year: € 275.7 million) and the depreciation and amortization for the 2013 fiscal year amount to € 9.4 million (previous year: € 6.8 million).

Revenue in the External Activities & Services segment includes contract revenue from construction and expansion services related to airport operating projects abroad in the amount of € 65.7 million (previous year: € 28.7 million). Fraport AnnualReport2013 7 6 8 The total amountoffuture incomefrom minimumleasepayments from arising non-cancellableleaseswas asfollows: Other operating income Other operatingincome Airport. infrastructure atFrankfurt airport program ofthe expansion expansion andthe airport fire andtheir protection systems. Airport terminalof the buildingsatFrankfurt internal Other also work related the to internal was work extension, remodeling capitalized incurredthe essentially inconnectionwith andmodernization ofemployees Theother ofcommercial work. project aswell managers, services asother andservices performance procured relatesThe other internal primarily workservices, to capitalized planning andconstruction engineering, capitalized work internal Other Other internalworkcapitalized Minimum lease payments Change in work-in-process Change inwork-in-process Total Other items Passive noiseabatement Release ofspecialitemsforinvestmentgrants Release ofallowances Income fromcompensationpayments Other internalworkcapitalized € million Gains fromdisposalofnon-currentassets Release ofprovisions € million Minimum leasepayments € million

Change inwork-in-process Minimum leasepayments € million € million

< 1year < 1year 76.3 85.6

Group Notes/totheConsolidatedIncomeStatement years 1 –5 years 1 –5 157.4 186.3

Residual term Residual term > 5years > 5years 861.6 856.4 2013 2013 2013 34.3 16.0 35.1 0.6 0.0 1.3 2.3 2.6 3.6 8.5

2012 adjusted 1,095.3 1,128.3 Table 54 Table 55 Table 57 Table 56 Total Total 2012 2013 2012 2012 55.8 18.5 44.0 23.4 0.5 8.1 2.2 0.8 1.7 1.1

121

Further Information Consolidated Financial Statements 122 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Income Statement

The release of provisions mainly relates to current provisions for rebates and refunds as well as personnel-related provisions.

The income from compensation payments mainly relates to proceeds from insurance claims.

9 Cost of materials

Cost of materials

€ million 2013 2012

Cost of raw materials, consumables, supplies and properties held as inventories – 100.4 – 103.4

Cost of purchased services – 512.6 – 454.7

Total – 613.0 – 558.1

Table 58

Among other things, the cost of raw materials, consumables and supplies and properties held as inventories includes production costs for finished property. The already realized proceeds are included under the real estate revenue.

In connection with the airport operating projects abroad (see also note 49), the expenses of purchased services includes revenue-related concession fees incurred of € 96.1 million (previous year: € 87.7 million), as well as order costs for construction and expansion services in the amount of € 65.7 million (previous year: € 28.7 million).

10 Personnel expenses and average number of employees

Personnel expenses and average number of employees

€ million 2013 2012 adjusted

Wages and salaries –766.7 –764.2

Social security and welfare expenses –137.3 –137.1

Pension expenses –42.8 –41.6

Total –946.8 –942.9

Average number of employees 2013 2012

Permanent staff 19,766 19,793

Temporary staff (interns, students and scholars) 1,181 1,170

Total 20,947 20,963

Table 59

The average number of staff employed during the 2013 fiscal year (excluding apprentices and employees on leave) was 20,481 in the fully consolidated companies (previous year: 20,535) and 466 in the companies accounted for using proportionate consolidation (previous year: 428).

Additions to pension provisions and additions to obligations arising from time-account models are included in personnel expenses. Fraport AnnualReport2013 11 Depreciation andamortization Depreciation and amortization weighted average (WACC) ofcapital cost ofbetween 6.43 planningassumptionsthe istaken into perpetual accountinthe annuity. Thediscountfactor was acountry-specific, Agrowth expected market andthe rate experiences on past performance. (ofbetween 0.0 respectivethe operating caseofinvestments contractual projects. inthe periods Theseforecasts are inairport based yearmade (inDecemberofthe underreview), current long-term basisofthe plansuntil2025orover andonthe years between 2014to 2019asapproved by Executive the Board andineffectthe impairment the time aretests at is generally determined future basedonthe cashflowsthe current estimatedplanningfiguresthe basisof on the for Determination future ofthe cashflowsgeneratingthe planningfigures.the cash unitsisbasedon of The valueinuse by discounted entityapplying the the cashflow method,fair the as value lesscost to sellcannot be reliably determined. value fair the to lesscost value sell.Only the inusewas year appliedinthe underreview. Thevalue inuseisdetermined The valuation ofassets The recoverable reflectsexpectations. future earnings the the higherof amountis value inuseor more information. € testsImpairment according to IAS 36 conducted year the during under review resulted in loss an impairment of 36 to IAS according losses Impairment of€ amortization The usefullives ofsomeassets were remeasured year inthe underreview, resulting innet reduced depreciation and Regular depreciation and amortization Composition ofdepreciationandamortization € million Total 0.5 million(previous year: € Investment property Property, plantandequipment Other intangibleassets Investments inairportoperatingprojects non-regular regular 0.4 million(previous of€ year: increased depreciation andamortization 0.3 million). All of this isrelated0.3 million).Allofthis to investment property. Pleaserefer to note 22for % and11.33 % (previous year: between 6.2 Group Notes/totheConsolidatedIncomeStatement

15.5 million). % and2.0 – – 267.6 352.1 – 10.9 – 72.8 2013 – 0.5 – 0.3

% and10.18 %) basedon Table 60 – – 272.6 352.7 – 71.0 2012 – 0.3 – 0.2 – 8.6 %).

123

Further Information Consolidated Financial Statements 124 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Income Statement

12 Other operating expenses

Other operating expenses

€ million 2013 2012

Insurances – 25.5 – 26.1

Consulting, legal and auditing expenses – 23.7 – 18.9

Rental and lease expenses – 21.4 – 24.7

Costs for advertising and representation – 17.0 – 18.5

Write-downs of trade accounts receivable – 12.3 – 2.0

Losses from disposal of non-current assets – 7.0 – 5.5

Other taxes – 9.7 – 5.8

Expenses from obligations to environmental and local areas – 3.8 – 21.0

Other items – 71.0 – 70.1

Total – 191.4 – 192.6

Table 61

Rental and lease expenses include minimum lease payments in the amount of € 14.9 million (previous year: € 14.6 million). There were no conditional lease payments in the 2013 fiscal year (previous year: € 3.0 million).

The obligations to environmental and local areas during the previous year included, in particular, provisions for the financial involvement of Fraport AG in the regional fund launched as part of the Alliance for Noise Abatement 2012, as well as provisions for promoting environmental projects.

The remaining other operating expenses include travel costs, office supplies, course and seminar fees, entertainment expenses, administration fees, postage and costs for additions to various provisions.

The consulting, legal and auditing expenses include for the respective Group auditor’s (disclosed in accordance with Section 314 (1) no. 9 of the HGB) fees amounting to € 2.3 million (previous year: € 1.9 million). They are comprised as follows:

Group auditor fees

€ million 2013 2012

Consolidated Consolidated Fraport AG companies Fraport AG companies

Audit services 1.1 0.4 1.1 0.4

Other certification services 0.4 0.0 0.2 0.0

Tax audit services 0.0 0.0 0.1 0.0

Other services 0.4 0.0 0.1 0.0

Total 1.9 0.4 1.5 0.4

Table 62

13 Interest income and interest expenses

Interest income and interest expenses

€ million 2013 2012

Other interest and similar income 38.8 52.6

Other interest and similar expenses –215.8 –226.7

Table 63 Fraport AnnualReport2013 15 14 Other financial result The other down financial result breaks as follows: Other financialresult are recorded asinterest result. current assets. Thenet interest payments ofderivative as financialinstruments well asinterest incomefrom securities andinterestexpenses incomefrom interest addedbackonnon-current liabilitiesandprovisions cost andonnon- Interest incomeandinterest includeinterest expenses from non-current loansandtimedepositsaswell asinterest Result from associated companies The result from associated down companies breaks asfollows: Result fromassociatedcompanies Interest from financial instruments measured at fair valuedirectly recognized inequity Expenses Total Total otherfinancialresult Income € million Total Total Flughafen Hannover-LangenhagenGmbH ASG Airport Service GesellschaftmbH ASG AirportService Airmail CenterFrankfurtGmbH Xi’an XianyangInternationalAirportCo.,Ltd. Thalita Trading Ltd./NorthernCapitalGatewayLLC € million Interest expensesfromfinancialinstruments Interest incomefromfinancialinstruments € million Others Valuation ofderivatives Foreign currencyratelosses,realized Foreign currencyratelosses,unrealized Others Gains fromdisposaloffinancialassets Valuation ofderivatives Foreign currencyrategains,realized Foreign currencyrategains,unrealized Group Notes/totheConsolidatedIncomeStatement

– 207.6 – – – 16.4 2013 2013 2013 15.6 12.4 11.7 13.6 35.9 – 1.6 – 0.6 – 2.4 – 8.4 3.2 0.0 0.5 0.0 0.8 2.6 0.3 0.6 2.5

Table 66 Table 64 Table 65 – 218.5 – 10.0 – 2012 2012 2012 44.7 30.5 23.2 15.1 14.2 11.7 49.7 – 0.3 – 0.4 – 1.1 – 2.8 4.9 0.4 1.1 0.5 0.7 2.8 8.1

125

Further Information Consolidated Financial Statements 126 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Income Statement

16 Taxes on income

Income tax expense breaks down as follows:

Taxes on income

€ million 2013 2012 adjusted

Current taxes on income – 98.9 – 109.6

Deferred taxes on income – 6.1 – 3.0

Total – 105.0 – 112.6

Table 67

Current income tax expense consists of current income tax for the year under review and income tax for previous years. Most of the income tax expense results from the activities of Fraport AG.

Current income tax expense for Fraport AG for the 2013 fiscal year amounts to € 70.6 million (previous year: € 80.4 million). This includes the item “taxes relating to previous years” in the amount of € 0.1 million (previous year: gain of € 6.8 million).

The tax expenses include the corporation and trade income taxes as well as the solidarity surcharge of the companies in Germany and comparable taxes on income of the foreign companies. The actual taxes result from the taxable results of the fiscal year and any revisions to previous assessment periods, to which the local tax rates of the respective Group company are applied.

Deferred taxes are generally measured on the basis of the tax rate applicable in the respective country. A combined income tax rate of around 31 % including trade tax has been applied to German companies.

Deferred taxes are recognized for all temporary differences between the tax and IFRS financial statements and for the carry-forwards of unused tax losses.

The Fraport Group had unused tax losses carried forward in the amount of some € 7.9 million as at December 31, 2013, based on current information, cannot be used (previous year: € 4.8 million). Loss carry-forwards that are not expected to be utilizable are mainly due to Fraport Immobilienservice und -entwicklungs GmbH & Co. KG and Fraport Cargo Services GmbH and can be carried forward indefinitely. Essentially for the evaluation of the recoverability of deferred tax assets is the probability of the future use of the losses carried forward. This depends on whether future taxable profits will be available in the periods in which the carry forward of unused tax losses can be utilized.

No deferred tax liabilities were recognized for temporary differences in connection with shares in subsidiaries, joint ventures and associated companies in the amount of € 145.2 million (previous year: € 144.0 million), as Fraport can control the timing of the reversal and it is not expected that these differences will reverse in the foreseeable future. These deferred tax liabilities are, however, limited to 1.55 % of the difference as well as local withholding taxes in the case of future dividend payments from certain foreign subsidiaries. The amounts are not material from the Group’s point of view.

In addition, deferred taxes also result from consolidation measures. Pursuant to IAS 12, no deferred tax is recognized with respect to goodwill capitalized or any impairment loss of goodwill.

Deferred tax assets and liabilities are netted insofar as these tax claims and liabilities relate to the same tax authority and to the same taxable entity or a group of different taxable entities that, however, are assessed jointly for income tax purposes. Fraport AnnualReport2013 to IFRSare assignedto following the financialpositionitems: Deferred taxes resulting differences from temporary betweentax basesandassets/liabilities accounted according Allocation of deferred taxes deferred of Allocation The consolidatedrate tax for 2013fiscal the year is30.8 1) Tax reconciliation income statement: The following reconciliation shows relationshipconsolidated the in between expense andtax expense expected tax ment of definedbenefitplans. € recognized directly affectingequity-decreasing inequity without deferred taxes profit orloss. amounting Further to increasing equity amount in the of € fiscal In the year, deferredtaxes decreasingthe amountof€ equity in

Consolidated statementoffinancialposition Consolidation measures Offsetting Total individualfinancialstatements Losses carriedforward Derivatives Liabilities Other provisions Provisions forpensionsandsimilarobligations Accruals Receivables andotherassets Financial assets in airportoperatingprojects Property, plantandequipmentincludinginvestments € million

Expected taxincome/expense Earnings beforetaxesonincome € million Taxes onincome accordingtotheincomestatement Others Trade taxandother effectsfromlocaltaxes First-time applicationofdeferredtaxesonlossescarriedforward Tax effectson tax-freeandtaxableincomefromotherperiods Permanent differencesincludingnon-deductibletaxprovisions Taxes relating to previousyears Taxes onnon-deductible operatingexpenses Tax effectsfrom differencesinforeigntaxrates 1.2 million(previous year: equity-increasing deferred taxes amountingto € Expected taxratearound31 of around15.5 %.

%, forcorporationtax15.0 1) 12.0 million) from values fair in the change the of derivatives and weresecurities % plussolidaritysurcharge 5.5

Deferred tax % (previous year: 30.9 – 281.4 assets 324.9 156.9 43.7 36.7 58.3 31.1 34.0 0.2 1.1 4.6 0.2 2.0

% andtradetax Group Notes/totheConsolidatedIncomeStatement Deferred tax 15.2 million(previous year: deferred taxes liabilities 0.8 million)resulted from remeasure the - – – – 280.5 120.4 281.4 384.6 – 17.2 – 15.1 – 53.9 – 29.3 2013 %). – 2.9 – 2.1 – 0.8 0.0 0.0

Deferred tax – 278.7 – 105.0 – assets 327.9 165.6 340.7 105.6 2013 49.2 51.5 49.1 31.3 22.8 12.7 – – – – 0.0 1.3 3.9 0.0 2.4 2.4 5.3 0.0 1.7 6.0 0.0 1.5

2012 adjusted Deferred tax (adjusted) liabilities Table 68 Table 69 – – – 282.0 – 112.6 – 102.5 278.7 361.6 364.1 112.9 – 19.6 – 14.1 – 41.7 – 18.9 – 2012 15.2 12.2 11.0 – 4.2 – 0.7 – – – – 0.0 0.0 0.0 0.8 5.2 0.1 6.8 2.4

127

Further Information Consolidated Financial Statements 128 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Income Statement / Notes to the Consolidated Financial Position

17 Earnings per share

Earnings per share

2013 2012 2012 adjusted reported

Basic Diluted Basic Diluted Basic Diluted

Group result attributable to shareholders of Fraport AG (€ million) 221.0 221.0 238.2 238.2 238.3 238.3

Weighted average number of shares 92,173,637 92,532,887 92,012,909 92,443,382 92,012,909 92,443,382

Earnings per €10 share in € 2.40 2.39 2.59 2.58 2.59 2.58

Table 70

The basic earnings per share for the 2013 fiscal year were calculated using the weighted average number of floating shares corresponding to a € 10 share of the capital stock each. Due to the capital increase, the number of floating shares during the period rose from 92,134,391 to 92,212,289 as at December 31, 2013. With a weighted average number of 92,173,637 shares, the basic earnings per € 10 share amounted to € 2.40.

As a result of the rights granted to employees to buy shares (authorized capital) within the scope of the employee investment plan and of the issue of subscription rights in connection with the stock options plan (contingent capital), the diluted number of shares amounts to 92,532,887 (weighted average) and the diluted earnings per € 10 share are therefore € 2.39.

Notes to the Consolidated Financial Position

A breakdown and the development of the individual non-current asset items can be found in the consolidated statement of changes in non-current assets.

18 Goodwill

Goodwill arising from consolidation developed as follows:

Goodwill

€ million Carrying amount Carrying amount Dec. 31, 2013 Dec. 31, 2012

Antalya Group 15.9 15.9

FraSec 22.4 22.4

Media 0.3 0.3

Total 38.6 38.6

Table 71 Fraport AnnualReport2013 19 21 20 € € of € Borrowing totaling costs € opened inOctober 2012,anditsassociated infrastructure. was from and€ projects related to capacitive Airport the ofFrankfurt expansion Investments inairportoperatingprojects runways in Varna andBurgas (previous year: € qualifying asset (previous year: € was whosefinancingcouldnot usedforexpenditure classifiedof beclearly capital thepurpose creating aspecific for Additions to property, 2013fiscal plantandequipment inthe year amounted to € Property, plant and equipment Property, plantandequipment assets intangible essentiallyOther relate to software. Investments in operating airport projects (previous year: 3.8 Borrowing of € costs capacitive Airport. ofFrankfurt expansion on average (previous year: approximately 4.7 Other intangible assets Other intangibleassets (see alsonote 4andnote 49)of€ operatingInvestments projects concessionpayments comprise dueto applicationofIFRIC12 the capitalized inairport Total Construction inprogress Other equipment,operatingandofficeequipment Technical equipmentandmachinery Land, landrightsandbuildings,includingbuildingsonleasedlands € million Other intangibleassets € million Investments inairportoperatingprojects € million 274.7 million)andinVarna andBurgas at€ 548.0 million(previous year: € 199.1 million(previous year: € %). 1.9 million were recognized for the specific financing of the New Passenger the and Terminals 17.5 millionwere (previous capitalized year: € 597.8 million) and the concession airports inLimaat€2 concessionairports 597.8 million)andthe 18.2 million). The cost ofdebtfor18.2 million).Thecost general project financing was approximately 4.3 807.0 million(previous year: € 246.2 million).They relate at to terminal the operation atAntalya Airport 195.3 million(previous year: € 1.0 million).Theaverage ofdebtfor cost project this was around 4.2 %). Borrowing were costs mainly incurred for projects relating to the 785.0 million) and incurred capital expenditure785.0 million)andincurred capital Group Notes/totheConsolidatedFinancialPosition 27.4 million). Of this amount,€ 27.4 million).Ofthis 158.7 million). 56.9 million related to Pier A-Plus, which 56.9 millionrelated which to PierA-Plus, 395.1 million,ofwhich€179.5million

Dec. 31,2013 Dec. 31,2013 Dec. 31,2013 62.8 million(previous year: 5,988.1 1,615.8 3,629.0 1,006.1 586.3 157.0 57.8

Dec. 31,2012 Dec. 31,2012 Dec. 31,2012 15.6 million 5,927.3 1,523.5 3,566.7 1,031.2 Table 74 Table 73 Table 72 674.6 162.5 44.2 % %

129

Further Information Consolidated Financial Statements 130 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

As at the balance sheet date, property, plant and equipment with a carrying amount totaling € 18.7 million carry mortgages (previous year: € 22.9 million).

Assets from finance lease contracts amounting to € 57.0 million were recognized in property, plant and equipment, as well as other intangible assets, in the year under review (previous year: € 69.5 million):

Finance lease contracts (2013)

€ million Carrying amount Additions Disposals Depreciation and Carrying amount Jan. 1, 2013 amortization Dec. 31, 2013

Other intangible assets 0.1 0.0 0.0 0.1 0.0

Land, land rights and buildings, including buildings on leased lands 24.9 0.3 0.0 2.6 22.6

Technical equipment and machinery 44.2 0.0 6.4 7.1 30.7

Other equipment, operating and office equipment 0.3 3.6 0.0 0.2 3.7

Total 69.5 3.9 6.4 10.0 57.0

Table 75

Finance lease contracts (2012)

€ million Carrying amount Additions Disposals Depreciation and Carrying amount Jan. 1, 2012 amortization Dec. 31, 2012

Other intangible assets 0.2 0.0 0.0 0.1 0.1

Land, land rights and buildings, including buildings on leased lands 27.4 0.0 0.0 2.5 24.9

Technical equipment and machinery 47.1 4.3 0.0 7.2 44.2

Other equipment, operating and office equipment 0.4 0.0 0.0 0.1 0.3

Total 75.1 4.3 0.0 9.9 69.5

Table 76

Other intangible assets include an agreement on the use of software licenses which become the property of Fraport AG after the contract expires. The contract expired in 2013.

Land, land rights and buildings, including buildings on leased lands, include an energy plant located on the premises of Fraport AG. Given the exclusive use by Fraport AG and the existence of a special lease contract, Fraport AG is considered to be the beneficial owner of the plant. The contract expires in 2020.

This item also includes a cargo handling and office building leased by Fraport Cargo Services GmbH to the end of the year 2023. The contract includes two options to extend the term of the lease for five additional years each. Since virtually all economic rights and obligations have been transferred and the contract term exceeds the material portion of the useful life, beneficial ownership of the building is assigned to the tenant.

Technical equipment and machinery includes an IT service agreement with the operational services GmbH & Co. KG for the provision of an IT structure on the Frankfurt Airport site and related services. As the network is located on the premises of Fraport AG and is of no reasonable commercial use to any other party, Fraport AG is considered to be the beneficial owner. Technical equipment and machinery also includes another IT service agreement with operational services GmbH & Co. KG for the provision of server and data storage capacities. The computer center required for this purpose is located on the premises of Fraport AG and Fraport AG is the sole recipient of the server and data storage services. Both contracts run until 2018. After an inventory taken at the lessor in the 2013 fiscal year, the quantity of infrastructure supplied during the year under review declined, so the leases were adjusted accordingly. Fraport AnnualReport2013 22 covers remaining ofthe most usefullife, the agreement the hasbeenclassifiedasafinancelease. vehicles acquired in 2012 to SüdLeasing GmbH, they are minimum 30, lease 2023.termleased As back the until April fiscal inthe transaction ninespecialvehiclesyear. with SüdLeasingGmbH,Stuttgart, with the special the saleof Upon The additionsof€ wouldcontractually transfer take agreedthe that placeonfullsettlement. property ofthe year, liabilitiesofsomespecialvehicles outstanding were repaid early, whichledto adisposalof€ remaining ofthe Most leasecontracts relate to specialvehicles. They between expire fiscal 2014and2015.Inthe Investment property whichareInvestment classifiedas includeslandandbuildingssituatedfollows: indirect vicinityto airport, property the Investment property remaining usefullife, predicted maintenance anticipated andthe costs development inrents. on aperpetual annuity. Thekey input parameters here are discountrate, market the sustainable the rent, assumed the regardWith to valuation the purchase ofthe program for realdiscounted the estate, cashflow method isusedbased losses totaling € annual rent. value fiscal Thefair amountinthe oftwoyear, buildingswas below carrying their that impairment meaning ings method multiplier, canbementionedthe underlying yields,andthe usefullife dependingonthe andproperty discounted using the cash flow method.and partly ImmoWertV As key input parameters- of earn the capitalization in method values ofearnings The fair pursuantto arecapitalization usingthe calculated by independent assessorspartly building rights. hereditary flight altitudein Kelsterbach.this classincludes commercially Inaddition, third-party used with real estate gram for realflightzoneofRunway inFlörsheimthe estate andcommercially Northwest leasedlow with real estate The developed land – level purchase realpro 3comprises leased for estate - residential from voluntary purposes the market. onthe not immediate Airport. Thelandisinthe observable vicinity ofFrankfurt The square meter of real prices transactions estate same land-use out areain the currently are,being carried however, valueThe fair undeveloped ofthe land–level 3isalsocalculated internally comparative usingthe value procedure. published by acommittee ofexperts. Valuation Regulation ofMay applicableinGermany 19,2010(ImmoWertV) ground standard values basedonthe valueThe fair landiscalculated ofthe internally comparative usingthe value procedure pursuantto Real Estate the Undeveloped land–level located inabird sanctuary. Kelsterbach 2isagriculturallandinthe whichispartly district Total Developed land–Level3 Undeveloped land–Level3 Undeveloped land–Level2 € million 0.5 millionwere recognized (previous year: € 3.6 millioninother equipment, operating andoffice equipment result from asaleandleaseback

Carrying amount amount Carrying Dec. 31,2013 47.7 36.6 0.3 million). 8.1 3.0

Carrying amount amount Carrying Dec. 31,2012 Group Notes/totheConsolidatedFinancialPosition 34.4 23.3 8.1 3.0

Dec. 31,2013 Fair value 55.3 43.0 9.3 3.0 2.8 million,asitwas

Dec. 31,2012 Fair value Table 77 41.7 29.7 9.0 3.0

131

Further Information Consolidated Financial Statements 132 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

The additions for the year under review were primarily from the voluntary purchase program for real estate in Flörsheim at € 14.4 million.

Foreseeable restrictions on the disposal of major parts of the investment property arise from the fact that these areas are located in the immediate vicinity of Runway Northwest.

Lease revenue from investment property during the 2013 fiscal year amounted to € 2.1 million (previous year: € 1.2 million). The total costs incurred for the maintenance of investment property totaled € 0.9 million (previous year: € 0.6 million), of which € 0.2 million (previous year: € 0.2 million) was incurred for property for which no lease revenue was earned during the fiscal year.

Obligations for the acquisition of investment property amounted to € 1.4 million at the balance sheet date (previous year: € 1.5 million).

23 Investments in associated companies

Investments in associated companies

€ million Dec. 31, 2013 Dec. 31, 2012

Xi’an Xianyang International Airport Co., Ltd. 104.2 104.8

Flughafen Hannover-Langenhagen GmbH 14.4 15.2

Airmail Center Frankfurt GmbH (ACF) 1.8 1.7

ASG Airport Service Gesellschaft mbH 0.8 0.9

Thalita Trading Ltd./Northern Capital Gateway LLC 0.0 14.0

Tradeport Hong Kong Ltd. 0.0 0.0

Total 121.2 136.6

Table 78

The additions in the consolidated statement of changes in non-current assets include not only shareholdings acquired, but also positive results of Group companies; the disposals include dividend distributions (in 2013: Xi’an with € 2.0 million, ASG with € 0.5 million and ACF with € 0.5 million) and negative results.

For Tradeport Hong Kong Ltd., Hong Kong, the cumulative amount of unrecorded pro-rata losses was – € 1.8 million as at December 31, 2013 (previous year: – € 2.4 million). The proportionate result in the reporting period total + € 0.5 million (previous year: + € 0.5 million). At Northern Capital Gateway LLC, further proportionate losses of € 0.6 million were no longer recognized in the reporting year.

Additional summarized financial information regarding the associated companies is found in the following table. This information refers to 100 % of the shares in associated companies.

Financial information regarding associated companies

€ million Dec. 31, 2013 Dec. 31, 2012

Assets 2,389.8 2,163.3

Shareholders’ equity 552.2 596.5

Liabilities 1,837.6 1,566.8

Total income 938.1 910.5

Result of the period – 35.0 37.8

Table 79 Fraport AnnualReport2013 24 € under review. resulted changes Other from reclassifications to current financialassetsother due tosecurities of Financial investments of € Other financialassets Other financial assets financial Other Republic ofGermany beconsidered must inorder to protect guarantee the claims. ments abroad for to shareholder loan becanceledprior this maturity, loan.Shouldthe interests the Federal ofthe Gateway LLC (NCG), St. Petersburg, Russia.TheFederal Republic ofGermany hasassumedaguarantee for direct invest- previousAs inthe year, loansto affiliated companies of€ current other financialassets. note noteamountof€ loansinthe promissory loans.Maturing in promissory Changes inother loansmainlyChanges relate amountof€ inthe Private Ltd., New Delhi, India,for whichthere was anewly derived value asfair year price inthe underreview. inother investmentsThe change “available ofthe relates to for shares sale”category inDelhiInternational Airport corresponding provisions amount of € in the to € fund unitswere decreased by € ofemployees retirementfrom claimsinparticular AG. time-accountmodelsandpartial the ofFraport Infiscal year 2013, Investment have includefundunitsthat securities beenacquired exclusively for insolvency the protection of credits there was from anoverfunding fundunitsof€ Total Loans Fair valueoption Available forsalefinancialassets € million

149.1 million maturing in 2014 and changes arising from arising measurement149.1 in2014andchanges of– million maturing Other loans Other investments Loans toaffiliatedcompanies Securities Securities ofnon-currentassets 57.6 million(previous year: € 168.2 million in securities which were168.2 million in securities classified as available for sale werethe made in year 7.1 million(previous year: increase of€ 64.0 million). These securities are64.0 million).Thesesecurities measured value atfair andcredited the against 54.2 million (previous year: € 4.6 million(previous year: € 15.0 millionto additionsresulting from financialinvestments 120.3 million relate to a shareholder loan to Northern Capital 120.3 millionrelate Capital to ashareholder loanto Northern 5.7 million), bringing the total the acquisition5.7 million),bringing cost Group Notes/totheConsolidatedFinancialPosition 65.9 million) (see also note 39). At year end, 2.5 million). € 1.9 million. 40.2 millionwere reclassified under

Dec. 31,2013 727.6 123.2 517.3 27.6 59.5 0.0

Dec. 31,2012 Table 80 742.7 128.4 497.0 53.4 63.0 0.9

133

Further Information Consolidated Financial Statements 134 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

25 Non-current and current other receivables and financial assets

Non-current and current other receivables and financial assets

€ million Residual term Total Residual term Total

up to 1 year over 1 year Dec. 31, up to 1 year over 1 year Dec. 31, 2013 2012

Receivables from joint ventures 0.3 4.7 5.0 3.6 – 3.6

Receivables from associated companies 0.7 29.6 30.3 0.8 18.1 18.9

Receivables from other investments 0.6 – 0.6 2.2 – 2.2

Financial assets available for sale 304.0 – 304.0 265.4 – 265.4

Refunds from “Passive noise abatement” 12.7 109.5 122.2 12.0 73.5 85.5

Other assets 107.0 1.7 108.7 90.7 – 90.7

Accruals 13.1 24.3 37.4 10.5 25.5 36.0

Total 438.4 169.8 608.2 385.2 117.1 502.3

thereof financial assets 376.4 36.0 412.4 328.7 18.1 346.8

Table 81

Accruals essentially relate to grants given for construction costs. At Fraport AG, grants given for construction costs are mainly awarded to utility companies installing facilities to meet the specialized requirements of Fraport AG. The utility companies own the utility equipment.

The financial assets in the available for sale category include securities with a remaining maturity of up to one year. The change resulted both from reclassification from other financial assets based on maturity and from additions amount- ing to around € 448.0 million as well as disposals of the securities which matured in the reporting year amounting to around € 390.0 million.

Other assets include promissory note loans with a remaining maturity of up to one year amounting to around € 40.1 million (previous year: € 28.1 million).

No effects arose from changes in credit ratings as the credit ratings of the issuers and issues did not change.

The item refunds from “Passive noise abatement” includes the expected full reimbursement amount from noise abate- ment charges from the airlines, which was recognized as other assets in compliance with IAS 37.53 in connection with the provisions created for the obligation of Fraport AG to reimburse costs for noise abatement construction measures. The value was determined based on the estimated expenses for reimbursing the costs of noise abatement construction measures. In fiscal year 2013, due to the adoption of the draft of the third regulation for the execution of the Act for Protection against Aircraft Noise (Außenwohnbereichsentschädigungs-Verordnung), there was a present value increase in the refund claim of € 48.3 million. More information about the corresponding present value increase in other provisions can be found in note 39.

Where applicable, the appropriate allowance was recognized for other receivables and financial assets as at the reporting date. The allowance made in this fiscal year was € 5.7 million (previous year: € 0.1 million). There are no other material past due items.

26 Income tax receivables

Income tax receivables

€ million Residual term Total Residual term Total

up to 1 year over 1 year Dec. 31, up to 1 year over 1 year Dec. 31, 2013 2012

Income tax receivables 2.1 20.3 22.4 35.0 19.5 54.5

Table 82 Fraport AnnualReport2013 28 27 ment within the meaningofIAS12.12. the ment within € discounted atarate of3.75 to € are intended for sale,amountingto € Gateway atthe Land andbuildingsincludesproperties which Gardens site immediate Airport, inthe vicinityofFrankfurt The corporation tax creditThe corporationtotaled tax € refunded in2008andispayable onSeptember 30ofeachyear. end of December 31, the 2006 and is non-interest installment was The first The bearing. refund after claim accrued to arefundcredit apayout ofitscorporationintenduring tax equal annualinstallments from period 2008to 2017. (new version),lished onDecember31,2006.Inaccordance KStG Section37(5)ofthe AG with Fraport isentitled (newAccording to version), KStG credit AG Section37(4)ofthe corporationofFraport tax the - to hadlast beestab Legislation(SEStEG). ofSE-Introductory draft amendmentstoconnection with law the departmental baseduponthe revisedOn December 12, 2006, the Corporation Tax German Section 37 of the effective became legally Act (KStG) in The majoritemreceivables inincometax relates 2006fiscal inthe credit to corporationcapitalized tax the year. Inventories Inventories section (seenote 16). Deferred assets are tax given explanations are recognized “taxes inaccordance onincome” inthe IAS12.Further with Deferred tax assets Deferred taxassets cost ofdebtwascost between around 1.3 saletransactions. Borrowingof property totaling costs € (previous year: € development held for ongoing Based onthe sale,€ property ofthe Total Other Work-in-process Raw materials,consumablesandsupplies Land andbuildingsforsale € million Deferred taxassets € million 20.3 million as at the balancesheet20.3 millionasatthe date (previous year: € 24.1 million(previous year: € 3.6 million). Carrying amountreductions of€4.6million(previous year: € 3.6 million).Carrying % dueto itslong-term nature. Thepresent value refund claimto ofthis amountsto atax 27.1 million). 24.4 millionasatDecember31,2013(previous year: € 31.0 million(previous year: € % and2.8 % (previous year: between around 1.7 0.6 millionwere recognized (previous year: € 24.9 million).Economically, refund this claimisanoverpay- 2.3 million was capitalized in the year2.3 millionwas inthe capitalized underreview 30.3 million) and at the Mönchhofsite30.3 million)andatthe amounting Group Notes/totheConsolidatedFinancialPosition

% and3.1 Dec. 31,2013 Dec. 31,2013 7.6 million)were result the 30.5 million),whichwas 75.3 17.0 55.1 43.7 0.6 2.6 %).

0.7 million).The Dec. 31,2012 Dec. 31,2012 Table 84 Table 83 77.7 17.3 57.4 49.2 1.0 2.0

135

Further Information Consolidated Financial Statements 136 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

The net realizable value of the property held for sale was calculated using the discounted cash flow method over the remaining planned selling period, with a discount rate adequate for the risk and related to the term. This ranged from 4.5 % (Gateway Gardens site) to 5.3 % for the Mönchhof site after tax (previous year: 5 % in each case). When calculating the discount rate, further discounts were applied in addition to the general sector risk premium, particularly for as yet unknown environmental and selling risks. When calculating the net realizable value, the selling prices of sales which have already taken place and expenses planned for further development and selling are taken into account. As was the case last year, the net realizable values were higher than the carrying amounts.

Additional costs incurring up to the date of sale mainly relate to expenses for the further development of the property held for sale comprising the Mönchhof and the Gateway Gardens sites.

Sales of property with a carrying amount of around € 7.3 million are planned for 2014 (previous year: around € 8.1 million). The sale of other land and buildings for sale (€ 47.8 million) shall be realized in 2015 and later.

The development areas of Grundstücksgesellschaft Gateway Gardens GmbH carry mortgages.

Expenses for the maintenance of real estate inventories during the year under review were minor. Selling costs mainly consist of personnel expenses incurred by Fraport Immobilienservice und -entwicklungs GmbH & Co. KG and Grundstücksgesellschaft Gateway Gardens GmbH.

Raw materials, consumables and supplies mainly relate to consumables for the airport operation.

29 Trade accounts receivable

Trade accounts receivable

€ million Dec. 31, 2013 Dec. 31, 2012

From third parties 181.6 180.0

Table 85

For 2013, the maximum default risk without taking guarantees into account equaled the carrying amount of € 181.6 million as at the reporting date. The following table provides information on the extent of the default risk.

Default risk analysis

€ million Carrying amount Thereof not Thereof in stated term overdue and not impaired overdue or impaired

< 30 days 30 –180 days > 180 days

Dec. 31, 2013 181.6 91.4 36.7 19.2 34.3

Dec. 31, 2012 180.0 95.4 44.9 9.7 30.0

Table 86

With regard to trade accounts receivable which are neither impaired nor in default, there is no indication as at the reporting date for 2013 that the debtors will not meet their payment obligations. There are no risk concentrations of open trade accounts receivable.

Cash security in the amount of € 6.5 million (previous year: € 8.8 million) and non-cash guarantee (mainly loan guaran- tees) in the nominal amount of € 24.8 million (previous year: € 22.7 million) were accepted as guarantee for unsettled trade accounts receivable. The guarantee received until the reporting date was neither sold nor passed on as security Fraport AnnualReport2013 31 30 other operatingaswell expenses, asrevenue-reducing individual allowances andreversals. Cash andcashequivalents includetimedepositsof€ timedepositsaswell asovernightThe bankbalancesmainly includeshort-term deposits. Cash and cash equivalents Cash andcashequivalents Net from additionsincludeexpenses allowances amounting to € Equity attributable to shareholders of Fraport AG Equity attributabletoshareholdersofFraportAG (previousrestriction year: € the concessioninAntalya, financing € In connectionwith and canberealized atany time. from three timeofacquisition. months than Thesefundsare the not subjectto any significantfluctuationsin value Allowances for trade accountsreceivable developed asfollows fiscal inthe year: (previous year: € balancesheetAs atthe date, trade accountsreceivable of€ eventwill beusedonly inthe debtor’s ofthe default. and willbereturned to respective the terminationbusinessrelationship. ofthe Theguarantee debtor after received Allowances Cash inhand,bankbalancesandchecks € million € million Total Revenue reserves Capital reserve Issued capital Balance asatDecember31 Exchange ratedifferences Availments Releases Expenses fromallowances 1 Balance asatJanuary € million 6.8 million). 110.8 million). 332.4 million(previous year: € 1.6 millionwere for assecurities financialliabilities pledged 105.3 millionofbankbalancesare subjectto adrawing 12.3 million(previous year: € Group Notes/totheConsolidatedFinancialPosition

584.0 million) with aterm584.0 million)with ofmore Dec. 31,2013 Dec. 31,2013 3,053.1 1,540.8 605.1 590.2 922.1 – 10.1 2013 2.0 million)shown in 35.0 12.3 35.1 – 2.3 0.0

Dec. 31,2012 Dec. 31,2012 adjusted 2,912.5 1,403.2 Table 87 Table 89 Table 88 821.9 588.0 921.3 2012 35.1 31.9 – 5.4 – 0.7 0.0 9.3

137

Further Information Consolidated Financial Statements 138 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

Issued capital Issued capital (less treasury shares) increased by € 0.8 million in fiscal year 2013 and is fully paid up as at the balance sheet date. At € 0.6 million, this increase relates to the partial use of the authorized capital – following the capital increase in exchange for cash contributions – to issue shares in connection with the employee investment plan.

Furthermore, contingent capital was used to acquire additional shares totaling € 0.2 million during the fiscal year to serve stock options from the Fraport Management Stock Options Plan 2005 (MSOP 2005).

Number of floating shares and treasury shares The issued capital consisted of 92,289,654 (previous year: 92,211,756) bearer shares with no par value, each of which accounts for € 10.00 of the capital stock.

Development of the floating and treasury shares according to Section 160 of the AktG

Treasury shares

Amount of Share in Issued capital Floating shares capital stock capital stock Number Number Number in € in %

Balance as at Jan. 1, 2013 92,211,756 92,134,391 77,365 773,650 0.0839

Management Stock Options Plan 2005

Capital increases 2013 22,600 22,600

Employee investment plan

Capital increase (June 27, 2013) 55,298 55,298

Balance as at Dec. 31, 2013 92,289,654 92,212,289 77,365 773,650 0.0838

Treasury shares

Amount of Share in Issued capital Floating shares capital stock capital stock Number Number Number in € in %

Balance as at Jan. 1, 2012 91,955,867 91,878,502 77,365 773,650 0.0841

Management Stock Options Plan 2005

Capital increases in 2012 201,650 201,650

Employee investment plan

Capital increase (June 28, 2012) 54,239 54,239

Balance as at Dec. 31, 2012 92,211,756 92,134,391 77,365 773,650 0.0839

Table 90

The new shares created under the employee investment plan were issued to the employees at a price of € 45.00 each on June 27, 2013.

Authorized capital Pursuant to Sections 202 et seqq. of the AktG, the Executive Board was authorized by resolution of the AGM held on May 27, 2009 to increase the capital stock by up to €5.5 million on one or more occasions until May 26, 2014 with the approval of the Supervisory Board. It was possible to exclude the statutory subscription rights of the shareholders. In 2013, a total of € 552,980 of authorized capital was used for issuing shares within the scope of the employee invest- ment plan. At the AGM of May 31, 2013, the existing authorized capital was canceled and new authorized capital of € 3.5 million was approved, which can be used for issuing shares to employees of Fraport AG and companies controlled by Fraport AG. The Executive Board is now entitled, with the approval of the Supervisory Board, to increase the capital stock on one or more occasions by up to a total of € 3.5 million until May 30, 2018, by issuing new shares in return for cash. The statutory subscription rights of the shareholders may be excluded. Fraport AnnualReport2013 to cameto dividend.Thedistributed amountthus € 2013 fiscal In the year,the AGM of May 31, 2013 decided to pay a dividend of € profitthe earmarked of for distribution Fraport AG the to AGM. Thisequates to € Board AG of Fraport The Executive of will € propose distribution the Board Supervisory and the for value fair reserve the valuation offinancialassets available for sale € total tion differences of– The derivative valuation was reserve – charged to Group the result companies are untilthe disposedofinaccordance IAS21. with may beexcluded. to employees AG ofFraport andcompanies controlled by AG. Fraport the shareholders ofthe Thesubscription rights Therefore, € Currency translation differences € total aswellstatements, aseffects ofconsolidationadjustments. revenuebut alsothe andretained Group ofthe consolidated companies reserves earnings includedinthe financial of€ reserve The revenue AG ofFraport not consist reserves only statutory ofthe reserves (includingthe reserves Revenue (€ employeethe investment plan(55,298shares intotal) and€ € reserve, capital premium the AG from issuingofFraport contains the reserve shares. € The capital Ofthe Capital reserve A total of 2,016,150 hadMSOP subscriptionbeen 2001balance issued andsheetunder 2005 the until rights the date. a third party, oracashpayment. referred to above shares, transfer company the andthe stock the options ofshares doesnot by usingtreasury serve exercise subscription rights granted authorization subscription rights basisofthe their MSOP 2005onthe underthe increaseframework the within The capital holdersof outto the extent MSOP2005that is only the carried ofthe tranchethe MSOP2005 of exercised.weregranted fifth inthe total € capital Contingent are subjectto avesting oftwelve period or24months. shares whichwere issuedto remuneration Executive membersofthe ofperformance-related until2010 Board aspart entitled to untilAugust31,2009,inaccordance subscribe more with detailed provisions regard. inthis Someofthe Board were toExecutive issueupto authorized atotal of1,515,000stock options Board to andSupervisory beneficiaries tothe approved increase rightsfulfill under subscription alsoserves capital The contingent MSOP 2005. The Fraport AGMthe AGM was atthe capital expanded heldonMarch contingent ofthe onJune1,2005. 14,2001.Thepurpose increase of€ capital A contingent Contingent capital 13.59) ofnew stock options sharesto (22,600shares). issuedfrom serve capital contingent 3.5 million of authorized capital remained asatDecember31,2013,whichcanbeusedfor capital issuingshares3.5 millionofauthorized 1.9 millionresults from excess issueamount(€ the inthe € 9.2 millionfor Philippinecompanies accounted the for equity method, usingthe whichare not 3.4 millionasatDecember31,2013.In2013,€ 13.9 millionwas approved according to Sections192et the AktGat seqq.ofthe € 103.2 million as at the balancesheet103.2 millionasatthe date (previous year: – 3.7 million(previous year: € 115.2 million(previous year: € 0.3 millionresulted from excess issueamount the inthe 8.4 million).Thisfigure includescurrency transla- Group Notes/totheConsolidatedFinancialPosition 35.00 pershare) ofnew shares issuedunder 0.2 million(22,600options) options ofthe 21.9 million(previous year: € 1.25 per no-par value share entitled 1.25 pershare. 114.8 million). 2.2 millionincrease inthe € 115.4 million out of 144.7 million).The 36.5 million), 27.7 million). 139

Further Information Consolidated Financial Statements 140 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

32 Non-controlling interests

Non-controlling interests

€ million Dec. 31, 2013 Dec. 31, 2012

Non-controlling interests (excluding the attributable Group result) 31.0 22.4

Group result attributable to non-controlling interests 14.7 13.3

Total 45.7 35.7

Table 91

The non-controlling interests comprise allocated equity and earnings of Fraport Twin Star Airport Management AD, FraCareServices GmbH, Fraport Peru S.A.C., FSG Flughafen-Service GmbH, FPS Frankfurt Passenger Services GmbH, Media Frankfurt GmbH and Lima Airport Partners S.R.L.

33 Non-current and current financial liabilities

Non-current and current financial liabilities

€ million Residual term Total Residual term Total

up to 1 year over 1 year Dec. 31, up to 1 year over 1 year Dec. 31, 2013 2012

Financial liabilities 314.9 4,146.8 4,461.7 196.6 4,401.0 4,597.6

Table 92

There is a general interest rate risk for fixed-interest loans that are extended on expiry.

The fixed-rate loans include also those floating-interest rate loans whose interest rate was fixed by contracting an interest rate hedge.

Please refer to the presentation of the finance management and the asset and financial position in the Group management report for additional explanations regarding the financial liabilities.

34 Trade accounts payable

Trade accounts payable

€ million Residual term Total Residual term Total

up to 1 year over 1 year Dec. 31, up to 1 year over 1 year Dec. 31, 2013 2012

To third parties 162.4 50.8 213.2 214.4 64.4 278.8

Table 93

Trade accounts payable include liabilities in connection with compensation measures according to the nature protection law in the amount of € 30.6 million (previous year: € 32.5 million). The liabilities relate to the contractual obligations to carry out environmental compensation measures based on the finished work to clear the forrest south of the airport and near the Northwest Runway as was necessary for the airport expansion. Fraport AnnualReport2013 35 Non-current andcurrentotherliabilities Non-current and current other liabilities Maturity of lease payments lease of Maturity The following leasepayments are duefrom lease contracts: the liabilitiesfrominterestcontributions, accrued andliabilitiesto company employees. The remaining other essentially liabilitiesconsist ofleaseliabilities, wage andchurch socialsecurity taxes, outstanding operating projects inAntalya,concession feesLima,Varna for airport the andBurgas. relate concession obligations The liabilitiesinconnectionwith to to obligations pay operation fixed and airport variable are incomereceived accruals Other andrelating to future periods. to usefullife the granted ofthe assets. Thespecialitems are released linearly according incurred expenditure controlsto for Airport. atFrankfurt capital baggage € AG,Fraport whichare billedto users.Investment the grants include government grants of€ Investment grants to non-current assets the include, inparticular, investments provided grants for by additional services Discount rates are between 3.0

€ million Present value Discount amounts Lease payments

€ million Present value Discount amounts Lease payments

€ million Prepayment fororders To jointventures To associatedcompanies To investments Investment grantsfornon-currentassets Other accruals Liabilities inconnectionwithconcessionobligations financial instruments Negative fairvaluesofderivative Other liabilities Total 9.2 million)andother grantors of€ thereof primary financialliabilities thereof primary % and8.6 6.0 million(previous year: €

% (previous year: between 5.0 up to1year 178.4 109.2

72.4 87.7 2.1 4.3 0.9 2.1 1.3 7.6

–

Residual term up to1year up to1year over 1year 570.0 176.5 889.4 578.2 13.9 12.4 13.4 60.4 69.1 6.4 million).Thegovernment grants relate, inparticular, 9.9 4.0 9.1 3.2

– – – –

Dec. 31, Group Notes/totheConsolidatedFinancialPosition 1,067.8 % and8.6 642.4 176.5 156.8 687.4 Total 2013 years 1 –5 years 1 –5 14.7 68.0 2.1 4.3 0.9 2.1

43.2 53.0 45.3 38.0 9.9 7.3 up to1year

%). 163.2 104.5 Residual term Residual term 76.5 70.2 2.1 2.4 0.8 1.7 2.2 7.3 over 5years over 5years

–

8.7 million(previous year: Residual term over 1year 20.5 25.0 18.9 14.9 4.5 4.1 1,006.4

598.3 244.2 614.1 13.4 65.0 85.5

– – – –

Dec. 31,2012 Dec. 31,2013 Dec. 31, 1,169.6 Table 95 Table 94 674.8 244.2 155.7 718.6 Total Total Total 2012 18.4 73.6 91.9 76.6 14.6 62.0 15.6 72.3 2.1 2.4 0.8 1.7

141

Further Information Consolidated Financial Statements 142 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

36 Deferred tax liabilities

Deferred tax liabilities

€ million Dec. 31, 2013 Dec. 31, 2012 adjusted

Deferred tax liabilities 120.4 102.5

Table 96

Deferred tax liabilities were recognized in compliance with IAS 12 using the temporary concept. Further explanations of deferred tax liabilities can be found in note 16 “taxes on income”.

37 Provisions for pensions and similar obligations

Defined benefit plans Within the Fraport Group, there are pension obligations for the members of the Executive Board of Fraport AG and their surviving dependents as well as obligations for Senior Managers and employees not covered by collective bargaining agreements.

The pension obligations essentially include 20 (previous year: 20) vested pension benefits promised in individual contractual pension commitments to the members of the Fraport AG Executive Board and their surviving dependents. A reinsurance policy was already obtained in 2005 to reduce actuarial risks and to protect pension obligations for the former and current (in some cases still active) members of the Executive Board against insolvency. This is a group insurance policy with an annual, constant minimum insurance amount for the entire group. The pension benefits from the reinsurance policy correspond to the total achievable retirement, disability and widow’s benefits in accordance with the pension commitments. The reinsurance benefits are recognized at the active value reported by the insurance company in the amount of € 19.3 million (previous year: € 18.3 million). The reinsurance is not traded on an active market (see also note 52). Reinsurance installments of € 1.2 million have been paid for 2013 (previous year: € 1.2 million) and € 1.2 million is expected for the next year. The average weighted duration of the members of the Executive Board’s defined benefit plans is 15.7 years for pensions with reinsurance and 8.7 years for pensions without reinsurance.

Offsetting

€ million 2013 2012

Reconciliation to assets and liabilities recognized in the financial position

Present value of obligations funded through a reinsurance policy 18.5 18.9

Fair value of plan assets – 19.3 – 18.3

Overfunding (not included in the net liability)/underfunding – 0.8 0.6

Present value of obligations not funded through a reinsurance policy 26.7 26.8

(Net) liabilities recognized in the financial position 26.7 27.4

Table 97

For Senior Managers and employees not covered by collective bargaining agreements who joined the company as Senior Managers or employees not covered by collective bargaining agreements after December 31, 1997 or who will join in future, the pension benefits and provision for surviving dependents on the monthly compensation liable to top-up pension payments, for which contributions are payable, are restricted to the upper limit defined in Section 38 of the ATV-K in the amount of 1.133 times of the payment group 15 level 6 of the collective bargaining agreement for civil servants (TVöD). In addition to the said limited pension benefits and provision for surviving dependents, there exists a supplementary operational pension for these persons. Hereafter, Fraport AG makes an annual contribution in the amount of 13 % of the eligible income as capital components into an individually managed pension account. Fraport AnnualReport2013 in obligations werein obligations asfollows: at December31,2013,were calculatedopinionsofDecember 17and23,2013.Changes basisofactuarial onthe The valuation provisions isbasedonthe ofpensionobligations according to as IAS19.Thepensionobligations 6.6 years infiscal year 2013. and retired employees. Theaverage weighted duration employee-financed ofthe company pensionscheme was (previous year: € interest.and accrues fiscal At endof the the year,there were 15 vested pensioncommitments totaling € canbechosenfreelythat eachyear. isconverted into aninsured sumandisaccumulated Thisportion by AG Fraport scheme (“deferred compensation”) since 1996. The employee is generated through converting a portion portion inanemployee-financed have to SeniorManagers participate Furthermore, company opportunity hadthe pension an average weighted duration of 10.2years. for andemployees Theobligations structure. SeniorManagers not covered by collective bargaining agreements had for former andretired employees. Nosignificantprovision amounts werethis fiscal paid yeardue the to age young 2013 annual financial statements. 2013 annualfinancial Future amount obligations to € to € 366 benefits(ofwhich196 the vested)the endof asat year. Thepresent the non-vestedvalue of benefitsamounts collective December31,1997,effective There status. in bargaining agreementsthe change after the timeof were asof by collective December31,1997orwhoentered bargaining agreementsinto after arelationship not covered by fromwho changed an employment relationship covered by collective bargaining agreements to one not covered not covered appliesfor by this employees acollective 1,2000.Furthermore, bargaining agreement before January 1,1998for employees onJanuary began ofcontribution whoenteredThe period into anemployment relationship Pension obligations (2013) obligations Pension Actuarial gainsandlossesfromchangesinfinancialassumptions based onexperience Actuarial gainsandlossesfromtheadjustmentofobligation Actuarial gainsandlossesfromchangesindemographicassumptions Return onplanassets,excludinginterest Remeasurements Interest incomeandinterestexpenses Net interestincome/expense Total cost service Gains andlossesonsettlement cost Past service cost Current service Service cost Service As at January 1,2013 As atJanuary € million Total remeasurements Contributions oftheemployertoplan Impacts ofexchangeratedifferences Payments fromtheplan Contributions oftheemployeetoplan As atDecember31,2013 Overfunding 0.7 million(previous year: present €0.8million);the value vested ofthe benefitsamounted to € 4.0 million). Obligations amountto4.0 million).Obligations € 3.5 millionfor active employees and€ 5.3 millionfor active employees and€ Present valueof the obligation Group Notes/totheConsolidatedFinancialPosition 45.8 45.3 – – 2.1 – 2.2 0.1 0.0 0.0 1.4 2.2 0.0 0.0 2.2 0.0 0.0 2.0 0.0 0.0

Plan assets – 18.3 – 19.3 – 0.6 – 0.5 millionfor former 0.0 0.0 0.0 0.2 0.2 0.0 0.0 0.0 0.0 1.2 0.0 0.6 0.0 0.0

5.6 million in the 5.6 millioninthe 1.0 million 4.0 million Table 98 Total 27.4 26.7 – 2.2 – 1.9 – 1.2 – 1.4 0.1 0.0 0.2 0.8 2.2 0.0 0.0 2.2 0.0 0.0 0.8

143

Further Information Consolidated Financial Statements 144 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

Pension obligations (2012)

€ million Present value of Plan assets Total the obligation

As at January 1, 2012 37.6 –16.9 20.7

Service cost

Current service cost 1.7 0.0 1.7

Past service cost 0.0 0.0 0.0

Gains and losses on settlement 0.0 0.0 0.0

Total service cost 1.7 0.0 1.7

Net interest income/expense

Interest income and interest expenses 1.7 – 0.4 1.3

Remeasurements

Return on plan assets excluding interest 0.0 0.1 0.1

Actuarial gains and losses from changes in demographic assumptions 0.0 0.0 0.0

Actuarial gains and losses from the adjustment of the obligation based on experience 0.7 0.0 0.7

Actuarial gains and losses from changes in financial assumptions 6.3 0.0 6.3

Total remeasurements 7.0 0.1 7.1

Impacts of exchange rate differences 0.0 0.0 0.0

Contributions of the employer to the plan 0.0 – 1.1 –1.1

Contributions of the employee to the plan 0.0 0.0 0.0

Payments from the plan – 2.2 0.0 –2.2

Overfunding 0.0 0.0 0.0

As at December 31, 2012 45.8 –18.3 27.4

Table 99

Significant actuarial assumptions

2013 2012

Interest rate 3.60 % 3.17 %

Adjustment of pensions 2.50 % 2.50 %

Termination of contract period, Termination of contract period, earliest pensionable age in earliest pensionable age in Retirement age pension commitments pension commitments

Table 100

The significant actuarial assumptions refer to the pension obligations of the members of the Executive Board, because these are the major obligations. All other pension obligations largely have the same assumptions.

Sensitivity analysis The sensitivity analysis is based on changes in the assumptions while the other factors remained constant. In practice, it is unlikely that only one actuarial assumption would change. Changes in actuarial assumptions may correlate with other actuarial assumptions. The pension provision would vary by the following amounts in the event of a change in assumptions: Fraport AnnualReport2013 Sensitivity analysis as at December 31, 2013 December at as analysis Sensitivity commitments. Along with the remaining the AG membercompanies,commitments. Alongwith Fraport not to obligations isobliged financeaccrued the consideration corresponds ofcontributions pensionstatements of financial to defined-contribution Fraport, and,ifapplicable,over-costs extent ofFraport’s orthe orunderfunding consolidated plan.Inthe inthe participation would companiesvide any that allow planassets, information toallocationofobligations, the service participating arecontributions accounted for asif it was plan.Due the ZVK adefineddoesnot contribution structure, to its pro- and acompany current alsocovers (IAS19.34b),only the itscontributions companies ofother with insuring risks the share totalfor inthe exact assets the ofZVKaccording to IAS19.32.Ifthere isnot sufficientinformationtheplan on companyplan, the hastothe shareand in accountfor obligations total ofitsbenefitobligations itsproportionate The ZVKinsurance isgenerally to theplanisadefinedbenefit beclassifiedasadefinedbenefitplan(IAS19.30). Since biometricthe risk. This planisamulti-employer companies involved plan(IAS19.8),sincethe investment ofthe share risk the andalso according to ATV-K, Section38ofthe the collective exceeds upperlimitdefinedin the bargaining agreement. not covered by collective bargaining for agreements andSeniorManagers) consideration the subjectto ZVKthat, of 9 payments islevied by employer the Anadditionalcontribution inaccordance ZVKStatutes Section63ofthe with (ZVKS). amounting to 0.5 liable to top-up pensionpayments; employer thereof, the pays 5.7 based onapay-as-you-go previous model.Asinthe year, rate contribution the ZVKis6.2 ofthe Zusatzversorgungskasse for local andauthority municipal employers in Wiesbaden (ZVK). The contributions are collected insurance schemebasedonacollective bargaining agreement (Altersvorsorge-TV-Kommunal [ATV-K]) the with AGFraport hasinsured itsemployees for ofgranting purposes adefined-benefitcompanystatutory the pensionunder Multi-employer plans available Group, regard inthe with there isnorisk to fulfillment for non-reinsured obligations. Somepension benefitsare tied to inflation andhigherinflationwillleadrisk. Due the tohigherobligations. liquidity to as theinterest theexposed risks wellas general definedbenefitplans, Group is In connectionwith to actuarial rate pensionsreceivedon the by Executive membersofthe Board andwas only calculated for other pensions. The analysis inamountsandpensiontrends. ofinflationincludesboththechange The retirement hasnoinfluence age Retirement age Mortality Inflation Interest rate € million % is paid for insurance social security some employees scheme (generally employees statutory included in the %. In addition, a tax-free restructuring charge of2.3 restructuring %. Inaddition,atax-free

Decrease ofinterestrateby0.5 Decrease ofinflationby0.25 – 0.8 2.6 %, with the contribution paidby contribution the employee%, with the % of the compensation liableto% ofthe top-up pension Group Notes/totheConsolidatedFinancialPosition Reduction byoneyear Increase byoneyear % % 1.3 0.1

Increase ofinterestrateby0.5 Increase ofinflationby0.25 % oncompensation – 2.4 0.8 Table 101 % %

145

Further Information Consolidated Financial Statements 146 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

covered by assets as well as future obligations. The precise share of the remaining extent of the obligation cannot be determined. In the event of Fraport AG withdrawing from the multi-employer plan (for example through terminating the agreement), compensation in the amount of the present value of the obligation at the point of the membership being terminated is to be paid to the ZVK. This amount cannot be determined due to only insufficient information being available. Should the multi-employer plan be dissolved by a resolution of the administrative committee, no share in any possible remaining overfunding will be due to Fraport.

In the fiscal year, € 28.1 million (previous year: € 26.8 million) was recorded as contributions to defined contribution plans. Contributions of €29.4 million are expected for the next fiscal year.

Furthermore, due to statutory provisions, contributions are also made to state-administered pension funds in Germany. The current contributions are shown as expense for the respective year. Employer contributions made by the Fraport Group to state-administered pension funds totaled € 66.0 million (previous year: € 71.7 million).

38 Non-current and current income tax provisions

Non-current and current income tax provisions

€ million Residual term Total Residual term Total

up to 1 year over 1 year Dec. 31, up to 1 year over 1 year Dec. 31, 2013 2012

Income tax provisions 8.1 54.1 62.2 5.3 80.2 85.5

Table 102

Tax provisions amounting to € 62.2 million (previous year: € 85.5 million) were accrued for unassessed corporation tax and trade tax, as well as for tax audit risks. The decline in income tax provisions is the result of the cessation of the 2003 – 2005 audit at Fraport AG in 2013.

39 Non-current and current other provisions

The development in the non-current and current provisions are shown in the following tables:

Non-current and current personnel-related provisions

€ million Jan. 1, 2013 Use Release Additions Dec. 31, 2013 adjusted

Personnel 75.8 – 49.7 – 3.2 62.2 85.1

thereof non-current 12.1 8.9

thereof current 63.7 76.2

Table 103

A large part of the personnel-related provisions were recognized for partial retirement, incentive schemes for the employees of Fraport AG, as well as for time account credits. The partial retirement provisions have been recognized according to IAS 19R since January 1, 2013. Retroactive application was implemented in accordance with IAS 8 (see note 4). The credit for partial retirement and claims from time account credits are offset against the fund units (see also note 24). Fraport AnnualReport2013 Other provisions In addition, other provisions include provisions mainly established for rebates and refunds, legal disputes and claim events. and equipment. accounted capacityexpansion forsame amountasproduction the inconnectionwith costs underproperty, plant decision ofMay 10,2013regarding wake amountof€ turbulencesinthe tion program Casa) aswell (Fraport for asadditionsfor residentialfrom zoningsupplement obligations properties the provisionsOther provision includethe of€ area andinthe ofRunway expansion. airport ofthe required Northwest for airport part the southern in the toterm obligation implement to ecologicalcompensating land measures clearthe resulting from work the performed A provision for environmental protection compensating measures was created previous inthe years due to long- the accounted capacityexpansion for the in connectionwith underproperty, plantandequipment. passive noiseabatement forThisamount was expenses commercially recognized asproduction usedproperties. costs 30,2013,accordingto HMWVLzoningsupplementdecisionofApril the to AG whichFraport to isobliged refund a refund claimfor amountindicated this underother receivables (seealsonote 25).Theremaining € December 18,2007andwasthe throughthe enactmentof madespecific regulation above the fiscal in year. There is (Fluglärm-Außenwohnbereichsentschädigungs-Verordnung). results Theobligation from zoningdecisionof the thirdfor ofthe regulation byfor execution Act the for ofthe adoption draft the ofthe Protection Noise Aircraft against for was privately increased by usedproperties € The present value provision ofthe formed in2011forto obligation compensate the passive noiseabatement expenses airport. sectionofthe southern the site aswell inFrankfurt/Main, asforgroundwater environmental Airport Frankfurt pollutionin onthe contamination The environmental provisions have beenformed largely for for costs probable eliminationof the restructuring € million

Environment Passive noiseabatement Nature protectionlawcompensation Total Other thereof non-current thereof current

9.6 million(previous year: € Jan. 1,2013 57.6 millioninfiscal this, € year 2013.Of 355.2 168.7 199.1 156.1 37.6 91.0 57.9

– – 43.5 53.2 – 5.1 – 4.3 – 0.3 Use

19.4 million)for purchase the andcompensa- Group Notes/totheConsolidatedFinancialPosition Release – 23.8 – 23.5 million,whichwas recognized inthe 29.1 – 5.3 0.0 0.0

Additions 117.7 57.6 56.8 3.3 0.0 48.3 millionwas accounted

Interest effect – 0.7 – 1.2 – 0.6 – 0.6 – 9.3 millionisdue 3.1

Dec. 31, Table 104 143.1 176.1 387.5 226.2 161.3 2013 35.1 33.2

147

Further Information Consolidated Financial Statements 148 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

40 Financial instruments

Disclosures on carrying amounts and fair values The following tables present the carrying amounts and fair values of the financial instruments as at December 31, 2013 and December 31, 2012, respectively:

Financial instruments as at December 31, 2013

€ million Measured Measured at fair value Dec. 31, at amortized 2013 cost

Recognized in profit or loss

Measurement category Nominal Loans and receivables Fair value Held for Available Hedging Total according to IAS 39 volume option trading for sale derivative fair value

Liquid Carrying Fair value Carrying Carrying Carrying Carrying funds amount amount 1) amount 1) amount 1) amount 1)

Assets

Cash and cash equivalents 605.1 605.1

Trade accounts receivable 181.6 181.6 181.6

Other financial receivables and assets 108.4 108.4 304.0 412.4

Other financial assets

Securities 517.3 517.3

Other investments 59.5 59.5

Loans to investments 123.2 123.2 123.2

Other loans 27.6 27.6 27.6

Derivative financial assets

Hedging derivative 0.0

Other derivatives 0.0

Total assets 605.1 440.8 440.8 0.0 0.0 880.8 0.0 1,926.7

Other financial Fair value Held for IAS 17 liability Hedging Total liabilities option trading derivative fair value

Carrying Fair value Carrying Carrying Carrying Fair value Carrying amount amount 1) amount 1) amount amount 1)

Liabilities and equity

Trade accounts payable 213.2 217.0 217.0

Other financial liabilities 687.4 764.4 764.4

Financial liabilities 4,461.7 4,541.1 4,541.1

Liabilities from finance leases 62.0 67.5 67.5

Derivative financial liabilities

Hedging derivative 143.0 143.0

Other derivatives 33.5 33.5

Total liabilities and equity 5,362.3 5,522.5 0.0 33.5 62.0 67.5 143.0 5,766.5

1) The carrying amount equals the fair value of the financial instruments. Table 105 Fraport AnnualReport2013 Financial instruments as at December 31, 2012 December at as instruments Financial responding to terms the to maturity. are determinedinstruments basis ofdiscounted onthe future expected cashflows, usingmarket interest rates cor The derivative mainly relate financialinstruments to interest rate hedgingtransactions.fair The these financial values of specialized sources providers. anddata Thevalues are determined valuation models. usingestablished The valuation ofunlisted was securities basedonmarket valuation applicableonthe date data usingreliable and date correspond to value. fair the reporting amountsasatthe assets, carrying the for maturities cashandequivalents,Given trade accountsreceivable short the andother financial receivables and 1)

The carrying amountequalsthefairvalueoffinancialinstruments. Thecarrying Liabilities andequity according toIAS39 Measurment category € million Trade accountsreceivable Cash andcashequivalents Assets and assets Other financialreceivables Trade accountspayable Other financialassets Other financialliabilities Financial liabilities Derivative financialassets Liabilities fromfinancialleases Derivative financialliabilities Total assets

Total liabilitiesandequity Securities Other investments Loans toinvestments Other loans Hedging derivative Other derivatives Hedging derivative Other derivatives Carrying Carrying Nominal amount volume 4,597.6 5,595.0 Liquid funds 821.9 278.8 718.6 821.9 Other financial

Fair value liabilities Loans andreceivables Carrying Carrying amount 4,791.3 5,828.8 180.0 284.8 752.7 128.4 443.2 81.4 53.4

at amortized Measured amount Fair value Fair value Carrying Carrying option 180.0 128.4 443.2 81.4 53.4 cost 0.0

1)

amount amount Fair value Carrying Carrying Carrying Carrying Held for trading option 45.2 45.2 0.9 0.9 in profitorloss

1) 1)

Group Notes/totheConsolidatedFinancialPosition Recognized amount Carrying Carrying Carrying Carrying Held for amount trading 73.6 73.6 0.0

1)

IAS 17liability amount Fair value Measured atfairvalue Available Carrying Carrying for sale 265.4 497.0 825.4 63.0 85.1 85.1

1)

derivative derivative amount amount Carrying Carrying Carrying Carrying Hedging Hedging 199.0 199.0 0.0

1) 1)

fair value fair value Dec. 31, Table 106 4,791.3 2,091.4 6,158.1 821.9 180.0 346.8 284.8 497.9 752.7 128.4 199.0 Total Total 2012 63.0 53.4 85.1 45.2 0.0 0.0

- 149

Further Information Consolidated Financial Statements 150 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

In order to determine the fair value of financial liabilities, the future expected cash flows are determined and discounted based on the yield curve on the reporting date. The market risk premium for the term and respective borrower on the reporting date is added to the cash flows.

The fair values of listed securities are identical to the stock market prices on the reporting date.

There is no price quotation or market price for shares in partnerships and other unlisted investments, as there is no active market for them. The carrying amount is assumed to equal the fair value, since the fair value cannot be determined reliably. These assets are not intended for sale as at the 2013 balance sheet date.

The carrying amounts of other loans and loans to affiliated companies correspond to the respective fair values. Some of the other loans are subject to a market interest rate and their carrying amounts therefore represent a reliable valua- tion for their fair values. Another part of the other loans is reported at present value on the balance sheet date. Here, it is also assumed that the present value corresponds to the fair value. The other remaining loans are promissory note loans with a remaining term of less than four years. Due to the lack of an active market, no information is available on the risk premiums of their respective issuers. As a result, their carrying amounts were used as the most reliable value for their fair values. These are not intended for sale as at the 2013 balance sheet date.

Non-current liabilities are recognized at their present value. Interest rates with similar terms on the date of addition are used as a basis for discounting future cash outflows. To determine fair value, the respective cash outflows are discounted at interest rates with similar terms and with the Fraport credit risk on the reporting date. The carrying amounts of current liabilities are equal to the fair value.

The fair values of financial instruments belong to the measurement categories of the hierarchy within the meaning of IFRS 7.27A:

Measurement categories according to IFRS 7.27A (2013)

€ million Dec. 31, 2013 Level 1 Level 2 Level 3

Quoted prices Derived prices Prices that cannot be Assets derived

Other financial receivables and financial assets

Available for sale 304.0 304.0 0.0 0.0

Loans and receivables 108.4 0.0 108.4 0.0

Other financial assets

Securities available for sale 517.3 517.3 0.0 0.0

Other investments 59.5 0.0 59.5 0.0

Loans to investments 123.2 0.0 123.2 0.0

Other loans 27.6 0.0 27.6 0.0

Total assets 1,140.0 821.3 318.7 0.0

Liabilities and equity

Trade accounts payable 217.0 0.0 217.0 0.0

Other financial liabilities 764.4 0.0 764.4 0.0

Financial liabilities 4,541.1 0.0 4,541.1 0.0

Liabilities from finance leases 67.5 0.0 67.5 0.0

Derivative financial liabilities

Derivatives without hedging relationships 33.5 0.0 33.5 0.0

Derivatives with hedging relationships 143.0 0.0 143.0 0.0

Total liabilities and equity 5,766.5 0.0 5,766.5 0.0

Table 107 Fraport AnnualReport2013 or loss during the year the or lossduring under review. amount of – the result disclosed.Gainsfrom valuation the the “available value in atfair in offinancial instruments for sale”category net ofthe computation result.in the Interest other are anddividendincomeofthe categories not net includedinthe Interest anddividendincometo value fair whichthe option applies,orwhichare available for sale,are alsoincluded foreign andlossesofdisposals. currency translation andgains changes The net values, infair result ofchanges lossesandwrite-ups consists impairment recognized through profit orloss, belonged to followingbelonged the measurement hierarchy ofthe categories meaningofIFRS7.27A: the within fair recognized at statement offinancialposition financialinstruments the As atDecember31,2012,the valuein Net results Net Measurement categories according to IFRS 7.27A (2012) Held fortrading At amortizedcost Financial liabilities Available forsale Held fortrading Fair valueoption Loans andreceivables Financial assets € million Assets € million Loans andreceivables Other financialreceivablesandassets Other financialassets

Liabilities andequity Total assets Liabilities fromfinancelease Financial liabilities Other financialliabilities Trade accountspayable Derivative financialliabilities Total liabilitiesandequity Available forsale Other investments Securities fairvalueoption Securities availableforsale Other loans Loans toinvestments Derivatives withouthedgingrelationships Derivatives withhedgingrelationships of the measurement categories measurement the of € 6.8 million (previous year: € 14.8 million) were recorded directly in equityaffecting without profit Dec. 31,2012 1,089.5 4,791.3 6,158.1 265.4 497.0 128.4 752.7 284.8 199.0 81.4 63.0 53.4 85.1 45.2 0.9

Quoted prices Group Notes/totheConsolidatedFinancialPosition Level 1 265.4 497.0 762.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Derived prices 4,791.3 6,158.1 Level 2 327.1 128.4 752.7 284.8 199.0 2013 81.4 63.0 53.4 85.1 45.2 11.7 – 9.3 – 7.1 0.0 0.9 0.0 4.0 0.0 0.0

Prices that cannot be Table 108 Table 109 derived Level 3 – 10.0 2012 49.3 – 2.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1

151

Further Information Consolidated Financial Statements 152 Fraport Annual Report 2013 Group Notes / Notes to the Consolidated Financial Position

In addition to the recognized fair value changes, losses on financial liabilities in the “held for trading” category also in- clude the fair values of two interest rate swaps for which there were no hedged items in the course of the 2013 fiscal year.

Derivative financial instruments With regard to the items in its statement of financial position and planned transactions, Fraport is, in particular, subject to interest rate and currency exchange risks. Fraport covers interest rate and currency risks by establishing naturally hedged positions, in which the values or cash flows of primary financial instruments offset each other in their timing and amount and/or by using derivative financial instruments to hedge the business transactions. Derivatives are not used for trading or speculative purposes.

Interest rate risks arise in particular from the capital requirements associated with capital expenditure and from exist- ing floating interest rate financial liabilities and assets. As part of the interest rate risk management policy, interest rate derivatives were concluded in order to limit the interest rate risk arising from financial instruments with floating interest rates and assure planning security.

Within the Group, foreign currency risks mainly arise from revenue in foreign currencies, which are not covered by expenses in matching currencies. This results in a cash flow risk between foreign currency revenue and the functional currency. Fraport hedges such risks by entering into currency forwards.

As was the case in the previous year, the Group holds 50 interest rate swaps as at the reporting date. Furthermore, as was the case in the previous year, options were sold on five interest rate swaps in order to optimize financing costs. The value of the options was taken into account in the fair value of the interest rate swaps. Furthermore, there are four (previous year: nine) currency forwards.

Derivative financial instruments

€ million Nominal volume Fair value Credit risk

Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012

Interest rate swaps 1,430.2 1,447.5 –176.2 –243.9 0.0 0.0

thereof hedge accounting 1,205.2 1,222.5 –142.7 –198.7 0.0 0.0

thereof trading 225.0 225.0 –33.5 –45.2 0.0 0.0

Interest rate/ currency swap 0.0 15.0 0.0 –0.3 0.0 0.0

Currency forwards 1.5 3.9 –0.3 0.0 0.0 0.0

Table 110

A credit risk (counterparty risk) arises from positive fair values of derivative transactions that have been concluded. The total of all the positive fair values of the derivatives is also simultaneously equal to the maximum default risk of these business transactions. In accordance with financial risk guidelines, derivative contracts are only concluded with counterparties that have an investment grade rating in order to minimize the default and credit risks.

The fair values of the derivative financial instruments are recorded as follows in the statement of financial position:

Fair values of derivative financial instruments

€ million Other assets Other liabilities

Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012

Interest rate swaps – cash flow hedges 0.0 0.0 142.7 198.7

Interest rate swaps – trading 0.0 0.0 33.5 45.2

Interest rate/currency swap – cash flow hedges 0.0 0.0 0.0 0.3

Currency forwards – cash flow hedges 0.0 0.0 0.3 0.0

Table 111 Fraport AnnualReport2013 hedged itemhedged affects profit orloss. The payments cashflow underthe the becomeduein hedges following the the timewhen respectiveyears. Thisisalso classified as“held for trading”.gains orlosses All resulting fromthis classification are recorded through profit orloss. anddocumented As confirmed the previous at the casein was regular intervals. year, seven interest rate swaps were affectingsub-account without profit orloss.The effectiveness thesecash of hedges hasbeen flow verifiedandis arecash flowfair the these instruments inaccordancerecordedvalues of hedges IAS39.Changes with inanequity As was previous caseinthe the year, atotal of43interest rate swaps currency forwards andthe are accounted for as interest43 ofthe rate swaps are floating-interest-rate assignedto still existing liabilities. Interest rate swaps (hedge accounting) (hedge swaps rate Interest The interest rate and currency swap, previous included inthe year, andcameoffinDecember2013. expired swaps amountingto € and € from equity to financial the previous the result. In year, lossesof€ year (previous year: lossesof€ of€ Unrealized gains Currency forwards Total 2011 2010 2010 2010 2009 2009 2009 2009 2008 2007 2007 2007 2007 2007 2007 2006 2005 Beginning ofterm 2014 Maturity € million € million 1.0 million of gains were1.0 millionofgains transferred to operating the result. ineffectiveness Inaddition,the the interest of rate 17.0 millionwere recorded value inequity infair from change ofderivatives the 2013 fiscal inthe 0.1 millionwas recorded through profitthe previous andlossas in year. 62.0 million). During the year the 62.0 million).During underreview, lossesof 30.7 millionwere transferred to financial the result Group Notes/totheConsolidatedFinancialPosition End ofterm 2015 2020 2017 2015 2019 2017 2016 2015 2018 2019 2018 2017 2016 2015 2014 2016 2014

€ Nominal volume Nominal volume 38.1 millionwere transferred 1,205.2 100.0 220.0 100.0 115.0 70.0 85.0 85.0 25.0 45.0 40.8 36.0 89.9 28.6 16.1 18.8 70.0 60.0 1.5

Fair value Fair value Table 113 Table 112 – 142.7 – – – – – 16.6 12.9 36.6 16.3 11.5 – – – – – – – – – – – – – 3.8 5.2 3.1 8.8 2.7 5.5 4.9 3.9 2.2 2.5 6.1 0.1 0.3

153

Further Information Consolidated Financial Statements 154 Fraport Annual Report 2013 Group Notes / Notes to the Segment Reporting

Notes to the Segment Reporting

41 Notes to the segment reporting

Segment reporting in the Fraport Group according to IFRS 8 is based on internal reporting to the Executive Board as the primary decision-maker.

The same accounting principles as those used in the consolidated financial statements underlie segment reporting.

The strategic business units of Fraport AG in Frankfurt are clearly assigned to the Aviation, Retail & Real Estate and Ground Handling segments. In addition, these segments include Group companies integrated in the business processes at the Frankfurt site.

The Aviation segment incorporates the strategic business units “Airside and Terminal Management, Corporate Safety and Security” and “Airport Security Management” at the Frankfurt site. Furthermore, FraSec Fraport Security Services GmbH and FRA - Vorfeldkontrolle GmbH are assigned to this segment.

The Retail & Real Estate segment consists of the strategic business unit “Retail and Properties”, comprising the retailing activities, parking facility management and the rental and marketing of real estate at the Frankfurt site. In addition, the Group companies integrated into these activities on the Frankfurt site are allocated to the segment.

The Ground Handling segment combines the “Ground Services” strategic business unit and the Group companies involved in these operations at the Frankfurt site.

The External Activities & Services segment encompasses the internal service units of “Facility Management” and “Central Infrastructure Management”, as well as “Information and Telecommunications” and their Group companies. Group companies that are not integrated in the processes at the Frankfurt site and Group companies that carry out their business operations outside of Frankfurt are also allocated to the External Activities & Services segment.

Corporate data at Fraport AG is divided into market-oriented business and service units on the one hand and into central units on the other hand. All the business and service units are allocated clearly to one segment each. The central units are categorized appropriately.

The data about the Group companies that are not integrated in the processes at the Frankfurt site and Group companies that carry out their business operations outside the Frankfurt site are allocated to the External Activities & Services segment during reporting. The Group companies that are integrated in the processes at the Frankfurt site are allocated to the relevant segment according to their business operations.

Inter-segment revenue is primarily generated by the inter-company allocation of rent for land, buildings and space, as well as maintenance services and energy supply by Fraport AG. The corresponding assets are allocated to the Retail & Real Estate segment. The relevant units are charged on the basis of the costs incurred, including imputed interest.

Inter-segment revenue also reflects revenue that has been generated between the companies included from different segments.

Goodwill from business mergers and the appropriate impairment losses, where applicable, have been allocated clearly to a segment according to the segment structure. Fraport AnnualReport2013 42 (previous year: € fiscal the During year 2013, revenue of€ million). € 57.4 Segment assets Retail of the & Real segment include Estate real inventories estate of € Retail &Real segment). Estate of € for segment assets the lossesaccording include impairment Depreciation to and amortization amount IAS36inthe People’s Republic ofChina.Thefigures shown underthe of rest world relate mainly the USAto and Peru. Germany, rest ofEurope, Asiaandrestworld. ofthe Thefigures shown underAsia relate mainly to Turkeythe and additionaldisclosuresIn the “Geographical Information”, allocationisaccording to current mainareas the ofoperation: deferred assets/liabilities)the Group. tax ofthe assets/liabilities segmentassets/segment columnofthe income tax The “adjustment” (including liabilitiesincludesthe Reconciliation to the cash and cash equivalents as at the consolidated statement of financial position financial of statement consolidated the at as equivalents cash and cash the to Reconciliation liabilities (previous year: cashinflowthe amountof€ in Cash outflow from financing activitiesof € activities in financing (from) used flow Cash million). (€ 779.2 resulted incashflow usedininvesting activitiesof€ liquid fundsinnew financialassets andchanges to cashandequivalents aduration with three ofmorethan months noteThe proceeds loans,investment from andpromissory disposalofnon-current andcurrent securities the free ofthe program expansion extension projects Airport. andthe atFrankfurt airport ofthe equipment was madeaspart adecrease period, of€ reporting in the Cash flow usedininvesting investments activities without amounted incashdeposits and securities to € activities investing in used flow Cash Cash flow from operating activities of € activities operating from flow Cash Notes totheconsolidatedstatementofcashflows Notes totheConsolidatedStatementofCashFlows financial activities and with € financial activitiesandwith (previous year: € Cash andcashequivalentsasattheconsolidated statementoffinancialposition Restricted cash Cash andcashequivalentswithaduration of morethanthreemonths Cash andcashequivalentsasattheconsolidatedstatementofflows € million 0.5 million(previous year: lossesare €0.3million).Impairment charged to Aviation the segment(previous year: 861.0 million). Further explanations about segment reporting canbefoundreport. management inthe aboutsegmentreporting explanations 861.0 million).Further 809.8 million)from operating € activities,with 86.0 million(previous year: € 243.4 millionyear-on-year. onproperty, expenditure Majorcapital plantand Group Notes/totheSegmentReportingConsolidatedStatementofCashFlows 574.8 million (previous year: € 255.1 million mainly resulted from repayment the of non-current financial 871.4 millionwas generated inallfour segmentsfrom onecustomer 280.0 million,whichwas considerably below previous the year 218.2 million). 121.3 million)from cashoutflows taxes.for income 146.3 million(previous year: € 553.0 million) resulted € with

Dec. 31,2013 55.1 million (previous year: 605.1 105.3 332.4 167.4 135.5 million)from

807.1 million 492.8 million Dec. 31,2012 Table 114 821.9 110.8 584.0 127.1

155

Further Information Consolidated Financial Statements 156 Fraport Annual Report 2013 Group Notes / Other Disclosures

Other Disclosures

43 Guarantees and other commitments

Guarantees and other commitments

€ million Dec. 31, 2013 Dec. 31, 2012

Guarantees 26.4 4.7

Warranty contracts 175.0 186.0

thereof performance guarantees 113.3 127.3

Others 12.2 13.4

Total 213.6 204.1

Table 115

The primary warranties and performance guarantees are explained below.

A performance guarantee, excluding recourse against Fraport AG, was signed between GMR Holdings Private Ltd., Fraport AG and ICICI Bank Ltd. to the amount of € 35.1 million (INR 3,000 million) to modernize, expand and operate Delhi Airport (India). If, however, the party to the contract, GMR Holdings Private Ltd., fails to meet its contractual obligations, Fraport AG’s liability may not be excluded given the fact that Fraport AG is party to the contract.

In connection with the terminal operation at Antalya Airport (Turkey), Fraport AG assumed a contract performance guarantee of € 35.6 million for the investment in the Antalya operating company.

In the context of operating the airports in Varna and Burgas (Bulgaria), Fraport AG guaranteed the contractual per- formance of its Group company Fraport Twin Star Airport Management AD, established in 2006, to the amount of € 9.0 million.

The existing performance guarantee related to the concession agreement for the operation of the airport in Lima, Peru, amounts to € 8.2 million (US-$11.3 million) as at the 2013 balance sheet date.

The performance guarantees include a joint and several liability to the Hong Kong Airport Authority in connection with the Tradeport Hong Kong Ltd. investment project amounting to € 3.8 million (US-$5.2 million).

The other warranties mainly include guarantees assumed by Fraport AG in connection with the contractual financing arrangements signed by the Antalya operating company. As a result, the Fraport Group incurred other commitments to the amount of € 29.5 million.

The other commitments include that Fraport AG is held liable to the amount of € 12.2 million for rentals payable by Lufthansa Cargo Aktiengesellschaft to Tectum 26. Vermögensverwaltungs GmbH, if Lufthansa Cargo Aktiengesellschaft exercises an extraordinary right to terminate the contract. Fraport AnnualReport2013 44 45 In addition,there arethe amountof€ in other financialobligations to lessor. the In view economicalcontent, oftheir relevant the leasesqualify asoperate leasedasset leases,i.e.the isattributable date.notice.term agreements ofoneyearThebuildingrental cangenerally beterminated 2013reporting onthe atshort relate to agreementsleaseofequipment. buildingrental Theequipment andthe leasesshowed anaverage remaining fromexpenses arising agreements include future andleases.Thecontracts financialobligations rental Other entered into options plan (“Fraport Management Stockoptions Management plan(“Fraport Options Plan 2005”, “MSOP2005”). Executivethe Board resolved fiscal during year 2005 to submit a proposal the to AGM of Fraport AG for a newstock In order Board to and meet requirements the for variable compensation paid to Supervisory the Senior Managers, 2005 Plan Options Stock Management Fraport Stock options Other financialobligationsandcontingentliabilities Operate Order commitments the amountof€ the (previous year: € balancesheetAs atthe date, amountof€ inthe there were risks liabilitiesatLimafrom contingent tax to amountof€ the inIndiaexpenditure to obligations for DelhiIndira financecapital contribution GandhiInternationalcapital Airport developmentthe ofPulkovo andmodernization inSt. Petersburg Airport to amountof€ the Gateway Capital from mainlyofother consist these financialobligations aloancommitment to Northern LCC to finance In additionto from obligations along-term supply contract for provision the ofcoolingandheating(€ in Varna (term until2041)andLima,Peru andBurgas, (minimumterm Bulgaria until2031)(seealsonote 49). infrastructure have concessionagreements related beenagreedexisting basedonthe to operation airports the ofthe Revenue-related concessionfees ofunspecifiedamountsonairport for expenditure andadditionalobligations capital Rental andleasingcontracts € million Total Orders forenergysupply property/others Orders forcapitalexpenditureinproperty, plantandequipment,intangibleassetsinvestment € million Total more than5years more than1upto5years up to1year leases 10.1 million(previous year: € 10.7 million) as well as at Twin Star from penalties for for expenditure in arrears obligations in capital 17.6 million. 10.3 million). 159.1 million(previous year: €

Dec. 31,2013 Dec. 31,2013 Group Notes/OtherDisclosures 45.4 million,aswell as 287.6 222.2 65.4 47.0 28.9 8.7 9.4

181.7 million). 84.8 million), Dec. 31,2012 Dec. 31,2012 11.0 million Table 117 Table 116 442.3 359.3 83.0 10.6 10.4 47.3 26.3

157

Further Information Consolidated Financial Statements 158 Fraport Annual Report 2013 Group Notes / Other Disclosures

On June 1, 2005, the AGM of Fraport AG passed a resolution to adopt the main points of this MSOP 2005 proposal and the necessary capital measures to implement the plan. On the whole, it was possible to issue a total volume not exceeding 1,515,000 stock options to all eligible employees until August 31, 2009 within the scope of the MSOP 2005.

The stock options could be granted to eligible beneficiaries once a year in up to five annual tranches. The prerequisite for participation in the MSOP 2005 was the direct investment in shares by employees entitled to participate (blocked deposit).

In accordance with the aforementioned resolution, the subscription rights can be satisfied either with shares issued on the basis of contingent capital or with treasury shares or by cash settlement.

The subscription rights for the MSOP 2005 can only be exercised after a vesting period of three years within a further period of two years.

The stock options under the MSOP 2005 can only be exercised if the closing price of the Fraport share on the trading day that immediately precedes the day of exercise (“valuation day”) exceeds the original exercise price by at least 20 %.

In contrast to the previous plan, the new plan not only includes an absolute exercise limit but also a relative exercise limit linked to the performance of a specific stock basket. The amount of the resulting profit attributable to the benefi- ciary arising from the exercise of stock options is also limited. Thus, 150 % of the original exercise price for each stock option must not be exceeded.

The conditions to exercise the first tranche of the MSOP 2005 were first met in the 2008 fiscal year, when 44,700 options were drawn. In fiscal year 2010, 132,700 options expired because the exercise limit was not reached, while 20,900 options expired during the entire exercise period due to job terminations.

The vesting period for the second tranche of the MSOP 2005 ended on April 18, 2009. However, the requirements for exercising this tranche were not met, also as a result of the exercise limit. 148,300 options therefore expired in fiscal year 2011. Another 68,100 options expired in the exercise period due to job terminations.

The vesting period for the third tranche of the MSOP 2005 ended on April 17, 2010. However, in common with the previous tranche, the requirements for exercising this tranche were not met, also as a result of the exercise limit. 187,150 options therefore expired in fiscal year 2012. Another 32,800 options expired in the exercise period due to job terminations.

The vesting period for the fourth tranche of the MSOP 2005 ended on June 3, 2011. The requirements for exercising this tranche were not met, also as a result of the exercise limit. 188,350 options therefore expired in fiscal year 2013. Another 61,600 options already expired in the exercise period in the previous year due to job terminations.

The vesting period for the fifth tranche of the MSOP 2005 ended on April 10, 2012. The requirements for exercising this tranche were met. 224,250 options have been exercised so far, of which 22,600 in fiscal year 2013. 25,000 options have already expired in previous years due to job terminations and so there are currently 9,250 options left. This is approximately 3.6 % of the options originally issued.

As the authorization to issue subscription rights expired in 2009, no further stock options were issued in the years 2010 to 2013.

For more information on contingent capital, see note 31. Fraport AnnualReport2013 Development of the subscription rights issued Conditions of the MSOP tranches yearsin the 2005to 2009are shown below: table inthe share for price fiscal year 2013 was € tranche (previous options canbeexercised outstanding 31,850). The 9,250 ofthe fifth inthe year: weighted average 113,050 to and23,100 SeniorManagers to Directors ofaffiliated companies. have that rights not beenexercised have relate 52,200subscription rights Ofthese, expired. to Executive the Board, tranche from remaining MSOP2005endedin2013,the 188,350subscription exercise Since the fourth ofthe period The fair valueThe fair ofalloptions to bemeasured infiscal year 2013 was computedthe on following basis. exercise,account, anearly into blocked account the exercise taking early andthe periods procedure for entitled. those andother adjustments exceptional Monte capital Inaddition,the simulationallowsrights, rights. Carlo forinto taking shareholder into return; respective accountcashdividends,subscription taking basisofthe i.e.onthe share performance, basisofatotal ismadeonthe index the orunderperforms share ofwhether Fraport outperforms The computation the versus exercise original the price. share comparative Fraport share and the the Fraport by ofthe increase closingprice andthe inthe 20 atleast index MSOPbasketand the are price simulated to mirror, of targets, respective the performance performance basedonthe simulation isusedto determine value. fair share distributed process,processes log-normal Fraport Inthe price the of Recognition stock of the options through profitfair the orloss is basedon value of each option of a tranche. AMonte Carlo was reserve. recognized capital inthe amountof€ Personnel inthe expenses 2) 1) Atthegrantdate. Originalexercise target. priceatthegrantdate,subjecttoanadjustmentbyrelativeperformance Rights issuedasatDecember31,2013 Expired in2013 Exercised in2013 1,2013 Rights issuedasatJanuary

Tranche 2005

Tranche 2009 Tranche 2008 Tranche 2007 Tranche 2006

April 10,2009 April 17,2007 April 18,2006 June 6,2005 June 3,2008 Grant date

48.38 (previous year: € 0.2 millionwere ultimately incurred MSOP2005in2012.Thisamount through the vesting period April 10,2012 April 17,2010 April 18,2009 Total number June 6,2008 June 3,2011 –188,350 220,200 –22,600 End of 9,250

March 25,2010 March 28,2014 March 24,2012 March 26,2011 exercise period exercise price June 3,2013 average of Weighted 44.67). Thekey conditionsfor MSOPtranches the issued End of 24.35 23.59 40.81 30.87 in €

Exercise threshold Executive Board Thereof to members –52,200 54,000 –1,800 39.49 54.30 30.20 66.12 75.60 in € 0

Exercise price Directors of companies Thereof to affiliated Group Notes/OtherDisclosures –23,100 32.91 45.25 25.17 55.10 63.00 29,350 –5,000 1,250 in €

1) 1) 1) 1) 1)

Senior Managers of FraportAG Fair value Thereof to –113,050 136,850 Table 119 Table 118 –15,800 8,000 13.40 18.42 19.27 10.96 8.55 in € %

2)

159

Further Information Consolidated Financial Statements 160 Fraport Annual Report 2013 Group Notes / Other Disclosures

Interest rate The basis of the computations on the valuation date was a continuous zero interest rate. The interest rates were computed from the interest rate structures of government bonds maturing between one and ten years.

Dividends Discrete dividends are used in the Monte Carlo simulation. The computation basis for future dividend payments is public estimates made by ten banks. The arithmetic mean of these estimates is taken to determine the dividends.

Volatilities and correlation To ensure an objective procedure, historic data is used to measure volatilities and correlations. They are determined on the basis of the daily XETRA closing prices of the Fraport share and the daily prices of the MSOP basket index. The price history of the index was computed using the current weighting of the index as at the grant date and taking into consideration the historical closing prices of the index components.

The time frame for determining volatilities and correlations is the remaining maturity of the options.

The fair values at the time of issue are as follows:

Fair value of the MSOP tranches

Grant date Fair value in € Closing price in €

Tranche 2005 June 6, 2005 10.96 33.00

Tranche 2006 April 18, 2006 19.27 58.15

Tranche 2007 April 17, 2007 18.42 55.92

Tranche 2008 June 3, 2008 13.40 43.40

Tranche 2009 April 10, 2009 8.55 27.93

Table 120

The following volatilities and correlations were used for the computation as at the respective issue date:

Volatilities and correlations

Grant date Volatility Fraport Volatility Correlation MSOP basket Fraport/ MSOP basket

Tranche 2005 June 6, 2005 34.04 % 22.55 % 0.2880

Tranche 2006 April 18, 2006 32.34 % 20.78 % 0.2925

Tranche 2007 April 17, 2007 29.69 % 21.18 % 0.3095

Tranche 2008 June 3, 2008 27.69 % 15.03 % 0.4215

Tranche 2009 April 10, 2009 33.75 % 20.38 % 0.5382

Table 121

The computation for measuring the first tranche of the MSOP 2005 was made using a continuous zero interest rate of 2.57 % as at the issue date. Dividends were estimated to be € 0.86 in 2006 and € 0.94 in 2007.

The computation for measuring the second tranche of the MSOP 2005 was made using a continuous zero interest rate of 3.65 % as at the issue date. Dividend estimates were € 1.00 for 2007 and € 1.10 for 2008. Fraport AnnualReport2013 46 An annualincrease of€ 2.51 of tranchethe MSOP2005 of was madeusingacontinuouszero interest forfifth the The computation measuring rate of 4.25 tranche MSOP2005was ofthe madeusingacontinuouszero interest forfourth the The computation measuring rate of 4.06 forthird the trancheThe computation MSOP2005was measuring ofthe madeusingacontinuouszero interest rate Development of shares virtual issued infiscal Expense reported year 2013amount to €6.1 million(previous € year: € shares wereA total 2013fiscal of82,850virtual issuedinthe year. Aprovision the for the amountofLTIP in actualtrancheThe amountofthe islimited to 150 > > targets are shares met: actually allocated extent to dependsonthe performance whichthe The numberofvirtual immediately period. four endofthe atthe year performance mance objectives. Target achievement ismeasured over payment period); four years incashtakes place (performance perfor shares) isallocated annually dependingoncertain shares (so-calledperformance numberofvirtual A certain MSOP 2005. The LTIP for Executivethe Board and Senior Managers was introduced effective 1, 2010, to replace January the previous Long-Term IncentiveProgram(LTIP) Tranche

Fiscal year2010 Fiscal year2011 Fiscal year2012 Fiscal year2013 Dec. 31,2013 shares asat issued virtual Amount of > >

12.0 million (previous year: € 12.0 developments. Therefore, itconstitutes target. amarket-dependent performance measures development the The TSR oftimesubjectto ofsharesperiod dividendsandshare over price acertain Rank total shareholder return MDAX (target weighting (TSR) 30 weightedthe average timeofawarding. planEPSatthe target isThis determined internal performance by comparing actual the average with period EPS inperformance the pershareEarnings (EPS)(target weighting 70%) % as at the issuedate.% asatthe Dividendestimates were € issuedate.% asatthe Dividendestimates were € % as at the issuedate.% asatthe Dividendestimates were €

334,085 0.01 was expected for years the to come. 94,185 77,825 79,225 82,850 Issued

5.9 million) is reported asatDecember31,2013. 5.9 million)isreported Executive 121,750 Thereof 29,550 29,550 29,550 33,100 Board

Managers of Fraport AG 166,285 Thereof 51,585 37,650 38,800 38,250 Senior % of the target tranche (virtual shares awarded). target% ofthe tranche (virtual

1.14 for 2009and€1.15 for 2010. 1.16 for 2008and€1.17 for 2009. 1.15 for 2010and€1.18 for 2011. of affiliated companies Directors Thereof 13,050 10,625 10,875 11,500 46,050

%)

Thereof expired 14,216 14,451 14,792 46,909 3,450 3.0 million).

Additional options 12,051 13,547 33,012 issued 4,250 3,164

Group Notes/OtherDisclosures Balance at Dec. 31, 320,188 84,219 75,425 77,980 82,564 2013

Fair value Dec. 31, Table 122 73.01 56.51 45.07 50.12 2013

-

161

Further Information Consolidated Financial Statements 162 Fraport Annual Report 2013 Group Notes / Other Disclosures

Virtual share conditions The virtual shares in the 2013 tranche were issued on January 1, 2013. Their term is four years up to December 31, 2016.

The payout per virtual share corresponds to the weighted average closing price of the Fraport share in XETRA trading on the first 30 stock market trading days immediately following the last day of the performance period.

Entitlement to LTIP payments is established by the approval by the Supervisory Board of the consolidated financial statements for the last fiscal year of the performance period. Payments are then made within one month.

The valuation of the virtual shares takes place on the basis of the fair value per share for a tranche. A Monte Carlo simulation is used to determine the fair value. In the process, the log-normal distributed processes of the Fraport share price are simulated to determine the relevant payment according to the respective performance targets.

The fair value of virtual shares to be measured in the 2010 to 2013 fiscal years was calculated based on the following assumptions:

The basis of the computations on the respective valuation date was a continuous zero interest rate. The interest rates were computed from the interest rate structures of government bonds maturing between one and ten years.

The computation basis for future dividend payments is public estimates made by ten banks. The arithmetic mean of these estimates is taken to determine the dividends.

Historic volatility is used for the calculations. The calculations are based on the daily XETRA closing price for Fraport AG.

The remaining term of the LTIP is used as the time horizon to determine volatility.

Measurement parameters (LTIP)

Tranche 2013 Tranche 2012 Tranche 2011 Tranche 2010

Jan. 1, Dec. 31, Jan. 1, Dec. 31, Jan.1, Dec. 31, Jan. 1, Dec. 31, 2013 2013 2012 2013 2011 2013 2010 2013

Fair value €38.52 €50.12 €32.42 €45.07 €42.34 €56.51 €31.68 €73.01

Target achievement earnings per share 100.00 % 99.65 % 100.00 % 91.75 % 100.00 % 105.54 % 100.00 % 200.59 %

Rank total shareholder return MDAX 25.0 25.0 25.0 27.0 25.0 26.5 25.0 26.0

Interest rate end of period share price 0.19 % 0.44 % 0.59 % 0.23 % 1.60 % 0.14 % 2.23 % 0.03 %

Interest rate at time of payment 0.21 % 0.47 % 0.63 % 0.25 % 1.65 % 0.15 % 2.28 % 0.07 %

Dividend 2011 €1.15 €1.15

Dividend 2012 €1.27 €1.18 €1.17

Dividend 2013 €1.26 €1.26 €1.31 €1.26 €1.23 €1.26 €1.18 €1.26

Dividend 2014 €1.31 €1.25 €1.49 €1.25 €1.24 €1.25 €1.25

Dividend 2015 €1.41 €1.33 €1.56 €1.33 €1.33 €1.33

Dividend 2016 €1.43 €1.56 €1.43 €1.43 €1.43

Dividend 2017 €1.50 €1.56 €1.50 €1.50 €1.50

Volatility Fraport 31.55 % 25.43 % 37.66 % 22.00 % 37.83 % 17.89 % 38.55 % 13.84 %

Table 123 Fraport AnnualReport2013 47 Risk management Classification of securities 2013balancesheet Asatthe to date, amountofdebtinstruments. breakdown the the was securities ofthe asfollows: note loansinnon-current andcurrent assets andpromissory financialposition.Thecreditrisk onsecurities the isequal balancesheetThe maximumcredit onthe in the assets risk dateamountsof ismainly reflectedreported the carrying by on how toasset the dealwith orderivative into infuture, remaining accountthe taking term. asset’sgrade the during termderivative, orthe of holdingperiod adecision will bemade on acase-by-case basis aninvestment with issuers andcounterparties grade credit rating. credit Ifthe rating isdowngraded to non-investment creditof their ratings. ItisFraport’s financial assets policythat risk andderivative transactions outwith are only carried financial positionsare controlled andissuers,asby abroad diversification wellas regular ofcounterparties verification from arising risks financialpositions.Thedefault from itsoperating issubjecttobusinessandcertain risks Fraport default risk Credit systemsand the are regularly reviewed andadjusted to current market andproduct developments. appropriately processes, management aimtorisk andmonitor limitandcontrol Bothguidelines risks them. the the settlementthe Theguidelines,which arethe basisof controlling financialinstruments. andaccountingthe ofthe they offunctionsinrespect unambiguoussegregation includethe ofoperatinginstruments; their financial activities, hasprepared processesFraport control the ofrisk internaldealwith andregulate guidelinesthat useoffinancial the Risk Controlling CFO. andthe Chief Financial themonthly Officer(CFO)andin Committee Meeting held Treasury between the Treasury, Financial the risk positionsisprovided ofallmaterial to financial In addition,updated financethe monthly in reporting report recognition risk system. early ofthe to Executive the aspart Reporting Board positionsismadeonceperquarter ofrisk cash flows. Derivative financial instruments are used as hedgingthey i.e. instruments; are not used for trading purposes. affect that the Group’s risks only areassessment, selectedthose hedges used.Ingeneral, Fraport hedginginstruments risks by current operatingthese risk management to limitandfinance-relatedfinancial risk activities.Dependingona or resulting from aworsening operating financialmarkets. ofthe onthe businessordisturbances the objective Itis of credit inconnectionwith andmarket arising There to are risks exposed creditalsoliquidity risks price risks. additionally to mainly isexposed market dueto inexchangeFraport rates changes risks andinterest price rates. TheGroup is Debt instruments Equity instruments € million Dec. 31,2013 Group Notes/OtherDisclosures 883.9 0.0

Dec. 31,2012 Table 124 841.1 0.0 163

Further Information Consolidated Financial Statements 164 Fraport Annual Report 2013 Group Notes / Other Disclosures

Securities and promissory note loans have the following long-term issuer ratings:

Issuer ratings of securities (2013)

€ million Dec. 31, 2013

AAA 15.6

AA + 22.2

AA 30.1

AA – 70.0

A + 192.4

A 141.3

A – 191.3

BBB + 62.0

BBB 92.9

BBB – 66.1

Total 883.9

Table 125

In 2012, the securities and promissory note loans had the following issuer ratings:

Issuer ratings of securities (2012)

€ million Dec. 31, 2012

AAA 15.7

AA + 48.5

AA 0.0

AA – 29.0

A + 165.1

A 140.5

A – 158.3

BBB + 91.5

BBB 97.2

BBB – 85.3

BB+ 10.0

Total 841.1

Table 126 Fraport AnnualReport2013 in the liquidity.in the Given diversity the bothfinancingsources ofthe the liquid fundsandfinancialassets, and there riskofconcentration isno flexibilitysufficient toensure the theGroup. liquidity of Fraport as and othersecurities financial instruments), well as current and non-current credit linesand loan commitments, give The operating cashflows,the available realizable liquid funds(includingcashandequivalents andshort-term expenditure used tofor items financecapital ofproperty, plantandequipment. generatesFraport through financialfundsmainly itsoperatingexternal financing.Thefunds primarily businessand are risk Liquidity Issuer ratings liquid funds (2012) funds liquid ratings Issuer ratings): where liquid funds were banks In 2012, the deposited following had the issuer issuer ratings (based on short-term The banks where liquid fundsareThe banks deposited have following the long-term issuerratings: The credit onliquid regard fundsappliessolely risk with Current cashinvestments to banks. banks. with are maintained Issuer ratings liquid funds (2013) funds liquid ratings Issuer Total Not rated F –1+ P –3 P –2 P –1 A –3 A –2 A –1 A –1+ € million Total Not rated BB + BBB – BBB BBB + A – A A + AA – AA AA + AAA € million Group Notes/OtherDisclosures

Dec. 31,2012 Dec. 31,2013 Table 128 Table 127 821.9 229.5 132.3 314.0 113.6 605.1 138.8 100.6 135.9 141.2 25.8 18.7 55.2 1.0 2.3 0.0 3.4 4.3 4.9 5.5 0.0 0.0 0.0

165

Further Information Consolidated Financial Statements 166 Fraport Annual Report 2013 Group Notes / Other Disclosures

The operating liquidity management comprises a cash concentration process, which, on a daily basis, combines the liquid funds of most of the Group companies headquartered in Germany. This allows optimum control of liquidity surpluses and requirements in line with the needs of individual Group companies. Short and medium-term liquidity management includes the maturities of financial assets and financial liabilities and estimates of the operating cash flow.

The following list of maturities shows how the liability cash flows as at December 31, 2013 influence the Group’s future liquidity.

Liquidity profile as at December 31, 2013

€ million Total 1) 2014 2015 2016 – 2020 2021 – 2025 2026 et seqq.

Interest Repay- Interest Repay- Interest Repay- Interest Repay- Interest Repay- ment ment ment ment ment

Primary financial instruments

Financial liabilities 5,294.8 117.3 294.1 111.9 507.3 465.7 2,879.0 103.0 438.5 62.1 315.9

Finance leases 76.6 3.3 9.1 2.7 9.7 5.8 35.2 1.7 3.2 1.1 4.8

Concessions payable 1,159.0 42.8 29.7 41.0 27.5 172.4 173.8 103.1 199.9 154.4 214.4

Trade accounts payable 223.4 0.9 184.1 0.9 5.4 4.2 12.3 2.4 7.5 0.6 5.1

Derivative financial instruments

Interest rate swaps 185.1 55.7 47.4 80.9 1.1 0.0

thereof trading 33.9 8.4 7.6 16.8 1.1 0.0

thereof hedge accounting 151.2 47.3 39.8 64.1 0.0 0.0

Currency forwards

Incoming payments 1.9 1.9 0.0 0.0 0.0 0.0

Outgoing payments 1.5 1.5 0.0 0.0 0.0 0.0

1) Total of interest and repayments. Table 129

The liquidity profile as at December 31, 2012 was as follows:

Liquidity profile as at December 31, 2012

€ million Total 1) 2013 2014 2015 – 2019 2020 – 2024 2025 et seqq.

Interest Repay- Interest Repay- Interest Repay- Interest Repay- Interest Repay- ment ment ment ment ment

Primary financial instruments

Financial liabilities 5,505.8 117.5 157.8 114.6 284.9 519.1 3,185.1 114.3 673.4 70.0 269.0

Finance leases 92.0 4.0 9.9 3.4 10.1 8.0 43.5 1.8 4.9 1.2 5.2

Concessions payable 1,242.4 45.0 31.5 43.4 29.2 186.8 161.0 118.9 235.5 173.5 217.6

Trade accounts payable 288.1 1.1 214.4 1.0 38.8 4.1 12.4 2.4 8.2 0.6 5.1

Loan commitments 45.5 35.5 10.0 0.0 0.0 0.0

Derivative financial instruments

Interest rate swaps 253.1 58.3 56.4 133.6 4.6 0.2

thereof trading 45.3 8.5 8.5 24.9 3.2 0.2

thereof hedge accounting 207.8 49.8 47.9 108.7 1.4 0.0

Currency forwards

Incoming payments 3.9 3.9 0.0 0.0 0.0 0.0

Outgoing payments 3.8 3.8 0.0 0.0 0.0 0.0

1) Total of interest and repayments. Table 130 Fraport AnnualReport2013 There are currently noindicationsofany failure to essentialagreed comply the borrowing with terms andconditions. AG,capacity ofFraport creditors the have to right recall the loansearly. the shareholder to andcontrol inthe things, structure company. changes ofthe have Ifthese aproven effectthe borrowing on development andtaken outby banks AG Fraport amountof€ inthe contractually agreed credit clauses for specific earmarked and/or project-related public loans issued by public business of dividends and/or to redemption early the of loans or to additional payment the of equity. Additionally, there are beFailurecompliedmust with. to agreed comply the credit with clauses may lead to distribution onthe restrictions coverage debtservice ratios andkeyinter aliaregulations figures underwhichcertain for debt ratios andcredit periods of € Group companies abroad from arising independent project anominal financing with Financial value liabilitiesofcertain currency corresponding forwards, fixedwith the referencethe balancesheet asat prices date were used. currency are converted into respective the forward rate valid balancesheet asatthe date. For payments inconnection floating ratesthe net and payments onderivative Interest financialinstruments. and redemption payments in foreign balance sheet date were usedto determine interest financialliabilitiesbearing interest at the payments onprimary deadlinewasearliest taken into account.Therespective forward interest rates derived from interest the rate asatthe determine undiscounted the canrelease payments. apayment Ifacontractual atdifferent partner the pointsoftime, that aredate subject All financialinstruments to contractual agreementsthe2013 were asat reporting included to Currency rate sensitivity under review asfollows: deviation.standard Taking assumptions these profit asabasis,the the period for would have beenaffected the in year are result meanvalue the ofthe for respective the exchange rate underreview, period inthe lessorinadditionto a Transaction are assessed by risks means of sensitivity analysis. The calculation rates analysis on which the are based coordination Treasury the with AG. ofFraport Hedgingmainly involves useofcurrency forwards. the Entering transactions intothe the Groupinstruments. is financialinstrument responsibilityof companies inclose by usingderivative inpart erating basisandhedged transaction financial isassessedonanongoing business,the risk from revenue are not offset expenditure inmatchingby currencies. To the reduce foreign currency effects theop- in (US-$) andPeruvian New Sol(PEN).Transaction originate from primarily businessoperations whencashreceipts risks These mainly apply between €andTurkish the New Lira (TRY) orSaudiRiyal (SAR), aswell asbetween USDollar the flows subject affecting cash the Only risks to transaction foreign risks. currency fluctuation flows areactively controlled. The international Group focus Fraport makes ofthe the cash and itsoperating financial business,the results reported Currency risk applying natural hedging. consolidationofGroupthe companies not accounted are for met in€.Thesetranslational aspossibleby asfar risks In addition,there are effectsthe Group in fromthe translation of foreign currency assets orliabilitiesin€and/orfrom There are noessentialsensitivitiesinrelation to shareholders’ equity. €/SAR US-$/PEN €/TRY

€ million 317.3 millionincludenumerous ofcredit are clausesthat typicalfor typeoffinancing.Theseclausesinclude this

Gain 0.07 0.55 0.50

1,110.0 million.Theseclausesrelate, amongother Dec. 31,2013 0.07 0.59 0.57 Loss

Group Notes/OtherDisclosures Gain 0.07 0.27 0.15

Dec. 31,2012 Table 131 0.07 0.28 0.16 Loss

167

Further Information Consolidated Financial Statements 168 Fraport Annual Report 2013 Group Notes / Other Disclosures

Interest rate risk The Fraport Group is exposed to interest rate risks on a variety of primary and derivative financial assets and liabilities, as well as future planned capital requirements.

In regard to assets and liabilities that are currently held, the objective of refinancing at matching maturities is generally pursued. The interest rate risk arising in the next twelve months is relevant for control. Therefore, it is assessed every quarter and reported to the financial risk committee. Sensitivity analyses are prepared to determine the risk. These show the effects of changes in market interest rates on interest payments, interest income and expenses, other profit or loss portions and shareholders’ equity. Interest rate changes are defined to be the maximum fluctuation of the key interest rate in the past for the respective currency and the respective period of time and/or the maximum fluctuation of the ten year swap rate in the past. The deviation in absolute terms is taken into consideration.

To limit the interest rate risks, derivative financial instruments, such as interest rate swaps and swaptions, are used.

The sensitivity analyses are based on the following assumptions:

Changes in market interest rates of primary financial instruments with fixed interest rates affect profit or loss, or equity, only if the instruments are measured at fair value. The sensitivity analysis for these financial instruments assumes a parallel shift of the interest rate by 169 basis points over a period of twelve months.

The financial instruments measured at amortized cost with fixed interest rates do not affect profit or loss for the period or the equity of the Fraport Group.

Market interest rate changes of primary floating-rate financial instruments, which are not designated hedged items in a cash flow hedge of interest rate exposures, affect the interest result and are therefore included in the calculation of profit or loss related sensitivities. The respective net financial position for each currency is taken into account in the process. The interest rate sensitivity analyses are based on the following assumptions: €: 3.25 percentage points; US-$: 4.75 percentage points; TRY: 10.25 percentage points; Swiss francs (CHF): 2.50 percentage points; PEN: 7.10 percentage points; SAR: 4.50 percentage points; Canadian Dollar (CAD): 3.75 percentage points; Bulgarian Lew (BGN): 5.22 percentage points. The individual sensitivities are then aggregated to become one profit or loss related sensitivity in €.

Changes in market interest rates of financial instruments which were designated as hedging instruments in an interest rate related cash flow hedge affect equity and are therefore included in the equity-related sensitivity computations. The maximum variability is taken to be a parallel shift of the interest rate curve by 169 basis points over a period of twelve months.

Changes in market interest rates of interest rate derivatives, which are not part of a hedging relationship according to IAS 39, affect the other financial result and are therefore included in the profit or loss related sensitivities. The maximum variability is taken to be a parallel shift of the interest rate curve by 169 basis points over a period of twelve months.

Based on the portfolios and the structure of the consolidated financial position as at December 31, 2013 and the assumptions made, the profit or loss related sensitivity is €0.4 million in the event of an increase (decrease) in the market interest rate (previous year: € 8.1 million). This means that the financial result could hypothetically have increased (decreased) by € 0.4 million. This hypothetical effect on profit or loss would have resulted from the potential effects of interest rate derivatives of € 20.2 million (previous year: € 25.3 million) and an increase (decrease) in the interest result from primary floating-rate net financial positions of – € 19.8 million (previous year: –€ 17.2 million). Fraport AnnualReport2013 48 AG Venue and MesseFrankfurt GmbH&Co.KG. whichmajor business relationships with includeLandesbetrieb are Hessen-Forst,Mainovaand authorities maintained majority-owned andtheir CityofFrankfurt investments. ofHesseandthe state relationships the with Related companies and jointventures, related to Group whichare the according parties to AG IAS24.Thus,Fraport hasnumerous business businessoperations, are Group that the not isalsorelated includedaswellordinary to asassociated parties companies GroupAlongside the consolidatedthe courseof companiesthe context included inthe of statements, in financial Hesse of State the and parties related with Relationships already includedasconsolidated consolidated companies inthe statements of financial Fraport AG. unlesstheyAccording are discloserelationships disclosures), must related towith Fraport IAS 24(related parties, party Related partydisclosures Interest sensitivity Financial debt ratios debt Financial The financial ratios developed as follows under the period review: in Components of the control indicators controlThe components ofthe indicators are definedas follows: there sources issufficientaccessthat todebtcapital at reasonablecosts. debt and/orinterest company Aslongasthe expense. following remains the within margins, Fraport’s present view is requirements, monitors development Fraport the ofitsfinancialdebtusing ratios, which relate EBITDA to net financial increase company’s inthe sustained value. market-oriented Asacapital company expenditure continuingcapital with The Group’s objectives a view with arecompany’s tothe management ensuring capital continuedand existence a Capital management an increase (decrease) ininterest rates would have resulted inanincrease (decrease) inequity of€ The equity-related sensitivityis€ EBITDA/interest expense Net financialdebt/EBITDA Interest expense EBITDA Net financialdebt Interest sensitivity € million thereof derivativefinancialinstruments thereof primary financialinstruments thereof primary 46.2 million(previous year: € Current financialliabilities Interest expense Operating result+depreciationandamortization “other receivablesandfinancialassets” – Currentrealizableassetsin“otherfinancialassets”and – Liquidfunds + Non-currentfinancialliabilities 73.3 million). By applying the assumptions73.3 million).Byapplying the made,

x 4 –6 max. x 3 –4 min. Corridor

Dec. 31,2013 Dec. 31,2013 Group Notes/OtherDisclosures – 19.8 20.2 4.1 3.4 0.4

46.2 million.

Dec. 31,2012 Dec. 31,2012 Table 134 Table 132 Table 133 – 17.2 25.3 3.8 3.4 8.1

169

Further Information Consolidated Financial Statements 170 Fraport Annual Report 2013 Group Notes / Other Disclosures

All transactions with related parties have been concluded under conditions customary in the market as between unrelated third parties. The services rendered to authorities are generally based on cost prices. The following table shows the scope of the respective business relationships:

Relationships with related parties and the State of Hesse

€ million Majority shareholders

Companies controlled and Stadtwerke significantly Frankfurt am influenced Main Holding Associated by majority State of Hesse GmbH Joint ventures companies shareholders

2013 1.6 0.2 3.6 5.9 14.7

Revenue 2012 1.6 0.2 3.1 6.1 13.3

2013 14.6 9.3 8.3 13.2 102.8

Purchased goods and services 2012 2.4 8.2 7.9 13.5 92.5

2013 – 0.9 – 0.2 11.5 –

Interest 2012 – 0.9 – 0.3 10.4 –

2013 0.4 – 0.3 30.3 0.1

Accounts receivable 2012 – – 0.2 19.0 0.5

2013 – – 2.8 120.3 –

Loans 2012 – – 8.0 120.3 –

2013 24.9 – 4.3 9.1 40.1

Accounts payable 2012 26.3 – 2.5 0.8 26.6

Table 135

Relationships with related persons In accordance with IAS 24, Fraport AG also reports business transactions with persons related to it and their family members. The Executive Board, Supervisory Board and their family members are defined as related persons pursuant to IAS 24.

Remuneration for management in key positions in accordance with IAS 24 comprises the remuneration of the active Executive Board and Supervisory Board.

These were compensated as follows:

Remuneration of management

€ million 2013 2012

Salaries and other short-term employee benefits 5.1 4.4

Termination benefits 0.0 0.0

Post-employment benefits 1.0 1.1

Other long-term benefits 0.2 0.2

Share-based remuneration 2.3 1.0

Total 8.6 6.7

Table 136

Information regarding salaries and other short-term employee benefits for employee representatives on the Supervisory Board exclusively includes remuneration for their Supervisory Board activities.

Services following the end of the employment include service costs from pension provisions for the active members of the Executive Board. Fraport AnnualReport2013 49 note 52)realized fiscal inthe year. ofshare-basedThe statement remuneration for Long-Term expense the includesthe Incentive Program (LTIP, seealso benefits infiscal year2013. for Long-TermThe expense the Strategy seealsonote Award 52)isaccounted for asother long-term employee (LSA, > donotcharges that require approval. infrastructure. Thesetraffic charges are transport broken that charges require approvaldown into airport andother whatare knownThe company as“traffic charges” fly MainAirport that chargesto airlines forFrankfurt the provision of LandingRunway. Northwest andthe expansion area work compensation for asaresult construction airport ofthe the requirements for passive there are tightened. statutory noiseabatement Furthermore, andoutdoor living been further do not that complyInternational the Civil Aviationwith Organization Airport (ICAO) noise protection regulations have and extension Daytime to permit. the for operational civilaviation onaircraft restrictions Main atFrankfurt purposes were initially imposed in 1971 and subsequently updated have been tightened by aforementioned the amendment and protection systems take specialoperating that that account ofthe onnightflights conditions.Therestrictions andand signsneededto toguarantee monitor the andcontrol airtraffic theairport at availability of fire prevention operating ingood conditionatalltimes,to provideamong otherto things, equipment keep the andmaintain airport the islinked to toThe right are operatethe permit. various that specifiedin obligations airport Fraport AG is the required, Federal German ofthe Administrativeruling HighCourt. regarding LandingRunway, Northwest the inparticular airport, ofthe expansion the into relevant accountthe taking and was amendedby last decisionofOctober the outcome 29,2012basedonthe zoningdecisionprocess ofthe for AirTraffic German August 21,1936,ofthe does expire ActonDecember20,1957.Thispermit at not any specifictime Statethe ofHesseapproved inaccordance Section7asamendedon with operations amMainAirport atFrankfurt Federal German In agreementthe Minister with ofTransport, Minister the ofLabor, EconomicsandTransport for Fraport AG economicandsocialfacilities: give publicaccessto the important The following Group Group Fraport companies have inthe which concessionsorsimilarpermits, beengranted service concessionagreements Operating permitandservice > low-noise aircraft. reached quantity aswell aminimumpassenger as aminimumlevel ofgrowth travels passenger andwhenthe via HMWVL onDecember4,2013.Itprovides for retroactivehave airlines whenthe passenger discountsperdeparting proposed Fraport anincentiveFurthermore, program for years the 2014 and 2015,whichwas approved by the revenue year inthe underreview. charges accountedsince July 1, 2012 (see also fornote 35.67 25). Airport (NfL). Inaddition,charges for financingofpassive the noiseabatement measures (noisesurcharges) have beenlevied 1,2013 effectivewas approvedThe charge table January the Air the HMWVLandpublishedin by Bulletin Transport development exceeds below orfalls forecasted the figures,the contract calls for abonus/malusapproach to beused. representatives.airline Thecontract stipulates anannualcharge increase by 2.9 charges for 2012to 19,2010,anagreement was 2015by reached AG onairport Fraport Already onFebruary and charges isspecifiedina The amountofthe relatedtable. charge charges aswelland security ascharges for financingofpassive the noiseabatement measures (noisesurcharges). into take-off andlandingcharges, includingnoisecomponents charges andemissioncharges, andpassenger parking require charges that approvalThe airport according AirTraffic to German Section19bofthe are divided (LuftVG) Law % (previous year: 35.48 % for eachyear until2015.Ifpassenger Group Notes/OtherDisclosures %) of Fraport AG’s%) of Fraport

171

Further Information Consolidated Financial Statements 172 Fraport Annual Report 2013 Group Notes / Other Disclosures

>> The remaining charges not subject to approval are classified as charges for central ground handling infrastructure facilities and ground handling charges. In accordance with EU regulations, ground services on the apron were opened up to competition on November 1, 1999 (opened up in practice on April 15, 2000), by issuing a permit to another third-party ground handling company along with Fraport AG. The services in the area of central ground handling infrastructure facilities continue to be excluded from competition (monopoly sector) and are completely segregated from the ground handling services when they are offset with the airlines. Of Fraport AG’s revenue in 2013, 16.52 % (previous year: 17.18 %) was generated by ground handling services and 13.51 % (previous year: 13.53 %) by infrastructure charges.

Above and beyond the traffic charges, Fraport AG generates revenue essentially from revenue-based payments, renting and parking and security services. The proceeds from these operations – which do not require approval – accounted for 34.30 % (previous year: 33.81 %) of Fraport AG’s entire revenue in the year under review.

Fraport IC Ictas Antalya Airport Terminal Investment and Management Inc. (franchisee) In April 2007, the consortium in which Fraport AG holds an interest won the bidding procedure to operate the ter- minals at Antalya Airport for 17 years. The consortium and the Turkish airport authority (DHMI – franchisor) signed the concession agreement on May 22, 2007. Since September 14, 2007, Fraport AG and IC Yatirim Holding A.S. have been jointly managing the International Terminal 1 previously managed by Fraport AG, as well as the domestic and CIP terminals. On September 23, 2009, the Fraport consortium also took over operation of the second international terminal previously operated by IC Holding and Celebi Holding. The concession for the operation of all three terminals and the right to use all assets listed in the concession agreement extends to the end of 2024.

The franchisee is obliged in this context to provide terminal services in compliance with international standards, as well as the procedures and principles specified in the concession agreement. With regard to the authorized use of infrastructure, the franchisee is obligated to perform maintenance and capacity expansions (as required). Distributed over the term of the concession agreement, the franchisee also pays a concession fee of € 2.01 billion net.

In exchange, the franchisee receives the right to use the existing and future terminal infrastructure to operate the airport and the right to generate revenue from passenger charges paid by the airlines and from other services related to terminal operations. Passenger charges are regulated by the franchisor.

At the end of the concession term, the franchisee is required to return all assets specified in the concession agreement to the franchisor in proper operating condition.

In accordance with the concession agreement, the franchisee deposited a performance bond amounting to € 142.8 million at the beginning of the concession period for the benefit of the franchisor. This performance bond was issued by a Turkish bank, secured in part by corporate guarantees given by the shareholders. The proportion guaran- teed to the bank by Fraport AG in the form of a corporate guarantee was € 35.7 million. Following official approval of the new domestic terminal (Terminal 3) by the franchisor, the performance bond was reduced to € 142.3 million as agreed. The proportion guaranteed by Fraport AG thus amounts to € 35.6 million.

Fraport Twin Star Airport Management AD Fraport Twin Star Airport Management AD (franchisee) and the Republic of Bulgaria (franchisor), represented by its Minister of Transport, signed a concession agreement on September 10, 2006, for the operation and management of the Bulgarian airports in Varna and Burgas on the Black Sea.

According to the concession agreement, the franchisee is obligated to render various airport services and to improve services in line with international standards, national laws and the provisions stipulated in the concession agreement. In addition, the franchisee is obligated to invest € 243.3 million in the expansion and a capacity increase of the airports in Varna and Burgas and to maintain the assets ceded for use. In addition, the franchisee pays an annual concession fee of 19.2 % of total revenue, at least 19.2 % of BGN 57 million (€ 29.1 million), adjusted for the development of the Fraport AnnualReport2013 50 of € national inflation rate, the franchisor.to Thefranchisee concession paidanadditionalnon-recurring the amount fee in attributed asfollows: State ofHesse31.37 in accordance WpHGamounted Section22(2)ofthe with to 51.40 The total voting AG inFraport rights heldby State the ofHesseandStadtwerke am MainHoldingGmbHcalculated Frankfurt AG shareholder ofFraport As atDecember31,2013,the structure was asfollows: AGFraport didnot receive any notifications pursuant the WpHGinfiscalto Section21(1)of year2013. Information onshareholdingspursuanttotheGerman SecuritiesTrading Act(WpHG) of time.Thisdoesnot concession agreement apply ifthe isterminated early. to right amountofsaidinfrastructure havethe reimbursed by franchisor the for residual the carrying alimited period be returned to franchisor the by franchisee contractually the inthe definedoperational condition.Thefranchisee has operations contractAt must endofthe term,infrastructure the the pursuantto contract isessentialfor the that airport charges are regulated by Airport franchisor. the charges) andforparking ground handlingandother services. charges (passenger, to operations right generate andthe revenue, through airport landingand airport inparticular assessment basisispayable. Inreturn, franchisee the receives andfuture to infrastructure existing right for usethe the charges and20 46.511 contractually fixed minimumpayment (basicpayment ofUS-$15millionper year, adjusted for inflation byUSCPI)or The franchisee isalsoobligated to pay concessionfees. Theconcessionfee higheroftwo isthe the amounts:either second landingrunway hasnot yet begun. landing runway. Thecontractual amount ofUS-$100 million has been invested already. work onthe Construction to invest inparticular, terminal the andto buildasecond US-$100millionfor atleast remodeling airport, the ofthe infrastructure,franchisee the isobligatedfranchisor vis-a-vis the In additionto airport the operating andmaintaining overall conditions;the are concession term not possibleundercertain must exceed 60years, however. The termconcessionagreement ofthe is30years. Thecontract may berenewed for another ten renewals years. Further maintenance Jorgeexpansion, Chávez anduseofthe inLima(Peru). International Airport Transportation (MTC), concessionagreement signed the for Jorge Chávez for operation, the International Airport (franchisee) Peruvian Government andthe (franchisor), represented 14,2001, LAP by itsMinisterOn February of (LAP) S.R.L. Partners Airport Lima bereturnedmust to franchisor the inproper operating receiving conditionwithout any consideration inreturn. operations concessionterm,infrastructureAt endofthe pursuantto the contract isessentialfor the that airport term agreement. ofthe annual amount of€ the bondissuedbyThe franchisee abankrated is obligated franchisor to the aperformance BB with furnish onNovemberThe concessionagreement started 10,2006andhasaduration of35years. by franchisor. the charges are regulatedcharges (passenger, Airport charges) andfor landingandparking ground handlingservices. to operations right generate andthe and future revenue, infrastructureexisting through for airport airport in particular 3.0 million to the franchisor after the agreement the was3.0 millionto signed.Inreturn, franchisor the after franchisee the receives to right usethe the % oftotal revenue deductionandtransfer of50 Authority) to after (Aviation Corpac Regulatory % of the international passenger charges international (TUUA). charge% ofthe passenger of1 Inaddition,aregulatory 15.0 million in the first first 15.0 million in the ten the annualamountof € years andin % andStadtwerke amMainHoldingGmbH 20.03 Frankfurt % asatDecember31,2013.At time, they that were 7.5 million during the remaining the 7.5 million during Group Notes/OtherDisclosures %. %. % of the landing % ofthe % of the same % ofthe – orhigher, in

173

Further Information Consolidated Financial Statements 174 Fraport Annual Report 2013 Group Notes / Other Disclosures

The voting rights in Fraport AG owned by the City of Frankfurt am Main are held indirectly via the Stadtwerke Frankfurt am Main Holding GmbH subsidiary.

According to the last official report in accordance with the WpHG or individual disclosures by the shareholders, the other voting rights in Fraport AG were attributable as follows (as at December 31, 2013): Deutsche Lufthansa AG 8.46 % Lazard Asset Management LLC 3.16 % and RARE Infrastructure Limited 3.06 %. The relative ownership interests were adjusted to the current total number of shares as at the balance sheet date and may therefore differ from the figures given at the time of reporting or from the respective shareholders’ own disclosures.

There are no reports for the remaining 33.92 % (free float).

51 Statement issued by the Executive Board and the Supervisory Board of Fraport AG pursuant to Section 161 of the AktG

On December 17, 2013, the Executive Board and the Supervisory Board of Fraport AG issued the Statement of Compliance with the Corporate Governance Code pursuant to Section 161 of the AktG and made it available to the public on a permanent basis on the Group’s website www.fraport.com in the The Fraport Group/Corporate Compliance section.

52 Information concerning the Executive Board, Supervisory Board and Economic Advisory Board

Remuneration Report The following remuneration report describes the main features of the remuneration system for the Executive Board and Supervisory Board of Fraport AG in accordance with the statutory regulations and the recommendations of the German Corporate Governance Code (GCGC) as amended on May 13, 2013. It summarizes which principles apply in determining the total compensation of the members of the Executive Board and explains the structure and amount of the remuneration of the Executive Board and Supervisory Board members.

Remuneration of the Executive Board members in fiscal year 2013 Remuneration system Executive Board remuneration is set by the Supervisory Board upon the recommendation of its executive committee and is reviewed on a regular basis. The remuneration of the Executive Board members of Fraport AG shall be in propor- tion to the tasks of the position and the company’s situation and in line with a transparent and sustainable corporate governance approach which focuses on the long-term.

Compensation is comprised as follows:

>> Non-performance-related components (fixed salary and compensation in kind) >> Performance-related components with a short- and mid-term incentive effect (bonus) >> Performance-related components with a long-term incentive effect (Long-Term Strategy Award and Long-Term Incentive Program)

Generally, the Supervisory Board has been guided by the principle that in the ordinary course of business, members of the Executive Board shall receive a fixed annual salary, which makes up approximately 35 % of total compensation. The bonus payment should also amount to approximately 35 % of total compensation. The Long-Term Strategy Award should account for approximately 10 % of total compensation and the share of the Long-Term Incentive Program about 20 %.

In order to comply with the remuneration-related amendments of the GCGC in the version dated May 13, 2013, with effect starting in fiscal year 2014, a maximum limit was defined with each Executive Board member for the sum of the aforementioned respective remuneration components. For the Chairman of the Executive Board this amounts to € 2.3 million and € 1.65 million for the other members of the Executive Board. This maximum limit also applies in relation Fraport AnnualReport2013 a fixed proportion the to a fixedrespective and thereforeare proportion fixed subject gross annualsalary to implicit maximumlimits. are contributions, in for pensionbenefitcommitments.Thecommitments,includingperformance-related timestockThe last options were issuedwas in2009.Inaddition,Executive Board membersreceived contributions previous years, have that stockthe along-termrunning(seealsonote of options incentivestill plan 45). effect aspart In additionto aforementioned the remuneration components, there are stock issuedin still options outstanding, not yet beenfully paidout. to remuneration the was that granted previous the during fiscal years 2010 the components ofwhichhaveto 2013, separately beindividually andmust reviewed eachyear for compliance. relevant fiscal year, 20 Board memberhasto pay back 30 do not reach anaverage atleast of70 50 Board hasapproved respective the Supervisory consolidated the statements. financial after payments fiscal arethe during paidoutmonthly year. The remaining bonuspayments are payable onemonth within for afiscal year islimited to 140 extrapolated for entire the year. For Executive Board membersappointed maximumbonusamount asof2012the member was2009 or ifthe appointed year the during employment or the contract was amended in 2009, an amount aforementionedadding the parameters. The bonus amount for one fiscal year is capped at 175 allowance, by anindividualmultiplierfor eachExecutive Board member, stipulated ineachemployment contract and The actualbonusfor anExecutive Board memberiscalculated by multiplying EBITDA eachminusabasic andROFRA, figures (EBITDA and ROFRA) are recognized business management parameters forthe measuring success of a company. operating result, ROFRAinterest the onGroup assets; total i.e.the return (“return assets”). oncapital onFraport Both key The bonusisdependentonEBITDA Group andROFRAFraport for ofthe respective the fiscal year. EBITDAthe Group is (bonus) effect incentive along-term Without Performance-related components contributions. insurance, total halfofthe statutory insurance caseofstatutory andinthe voluntary Executive Board membersalsoreceive total toward halfofthe contributions pensioninsurance caseof their inthe personalsituation. of compensation dependsonthe driver. Thiscompensation inkindisgenerally available to allExecutive Board sameway; membersinthe amount the tax benefitsubjectfrom usingacompany toincome carwith the pecuniary benefits).Compensation inkindis (ancillary compensation forIn addition,the Executive Board membersincludescompensation inkindandother payments credited hisremuneration against of2013from AG. Fraport Board ofFlughafen Hannover-Langenhagen GmbHwas Supervisory asamemberofthe for hisactivitiesperformed companies iscredited remuneration. the against Thecompensation receivedsuch by DrZieschang from receives If anExecutive Board memberhassuchother board mandates atGroup compensation companies, heorshe the to Group companies”). AGwhich Fraport holds an indirect or a direct interest of more 25 than The fixed annualcompensation alsocovers anyby anExecutive activityperformed Board member for companies in is reviewed fixedThe amountofthe annualsalary ona generallyregular basis, annually, to ensurethat itisappropriate. the entire for period. a fixed annualsalary termemployment the oftheir During agreement (generally five years), Executive Boardrule, receive members,asa Non-performance-related components % of the calculated% ofthe bonuspayments have aconditionalpayback provision. IfEBITDA andROFRAfollowing inthe year % of the bonushasto% ofthe berepaid. Apossiblerepayment for eachfollowing exists obligation year % of the bonuscalculated% ofthe pro forma for fiscal year 2011. 50 % of the bonusto AG.% ofthe Fraport sameapply to Shouldthe the secondyear the after % of the corresponding key% ofthe figure the fiscalfor the yearin question, Executive % (so-called “other board mandates related Group Notes/OtherDisclosures % ofanticipated bonus % of the bonus paid for% of the

175

Further Information Consolidated Financial Statements 176 Fraport Annual Report 2013 Group Notes / Other Disclosures

If the Supervisory Board is of the opinion that the relevant business figures have decreased due to influences outside of the Executive Board’s control, it can grant a bonus at its discretion or waive the full or partial repayment, based on the Executive Board member’s performance. If an Executive Board member holds an active position for less than one fiscal year, a pro rata bonus payment is made.

With a long-term incentive effect (Long-Term Strategy Award, LSA) The LSA creates an additional long-term incentive effect that takes into reasonable consideration the long-term interests of the main stakeholders of Fraport AG, specifically employees, customers and shareholders.

As part of the LSA, each Executive Board member is promised a prospective financial reward for one fiscal year – the first being in 2010 for the year 2013. After three fiscal years have expired (the fiscal year in question and the two following years), the extent to which the targets have been met is determined and the actual payment is calculated based on these results. The paid amount can exceed or fall below the prospective amount but is capped at 125 % of the originally stated amount. Performance targets are customer satisfaction, sustained employee development and share performance. All three targets are equally important under the LSA. As in the previous year, for 2016 a prospec- tive sum of € 120 thousand has been promised to the Chairman of the Executive Board, while a prospective sum of € 90 thousand each has been promised to the other members of the Executive Board. Michael Müller and Anke Giesen participate in the Plan Award for 2011 and 2012 on a pro rata basis.

Customer satisfaction is evaluated on an annual basis using an established assessment system for airlines, real estate management, retail properties and passengers. Whether or not a target has been met is determined by comparing the corresponding data (in percentage points) at the beginning of the three-year period with the average achieved over the same period. If the actual result exceeds or falls below the target by two full percentage points, the bonus paid for customer satisfaction is increased or decreased correspondingly.

Sustained employee development relates to employee satisfaction and the changes in headcount. The Supervisory Board decides the extent to which the target has been met. Its decision is based on the results of the employee satisfaction barometer (a survey among Fraport AG employees carried out annually or at least every two years) and the responsible development of headcount in view of the economic situation of the Group.

For the share performance target, the Fraport share price development over the corresponding three-year period is compared with the average development of the MDAX and a share basket, which includes the shares of the opera- tors of the Paris, Zurich and Vienna airports. The payment for this share performance target is again determined by comparing the reference value calculated at the beginning of the three-year period with the actual development. Positive or negative deviations increase or decrease the prospective bonus correspondingly.

Entitlement to LSA payments is established by approval by the Supervisory Board of the consolidated financial state- ments for the last fiscal year of the performance period.

If an Executive Board member leaves Fraport AG before the end of a three-year period, the performance targets for such an Executive Board member are not calculated until after this period has expired. The award for the entire period is then paid on a pro rata basis for the amount of time the Executive Board member actually worked for the company. There is no right to payment for a three-year period which has not yet expired at the time the employment contract has been legally terminated due to extraordinary circumstances that are within the control of the Executive Board member (termination by request of the Executive Board member without cause pursuant to Section 626 of the German Civil Code (BGB), termination for cause within the control of the Executive Board member in accordance with Section 626 (BGB) or if the Executive Board member has been removed from his or her office for cause pursuant to Section 84 (3) of the AktG. If an Executive Board member joins the company during the course of a fiscal year, the Supervisory Board decides if and to what extent the Executive Board member is entitled to participate in the LSA program for this fiscal year. Fraport AnnualReport2013 fourth for 10 for fourth has beenmet, target the EPSfor fiscal first the yearaccounts 40 for average the with evaluation For the period. EPSactually achieved to target whatextent the performance the during strategic basedonthe period, development award, performance timeofthe the planningapplicableat iscompared In order to target determinehasbeenmet, weighted the to EPSperformance whatextent the average target EPSduring 3,550 were allocated to MichaelMüller. shares shares. fiscal For the wereyear 2013,6,850performance allocated6,850 performance to Anke Giesenand were allocated to DrStefan Schulte asatarget tranche, whilePeter Zieschang eachreceived SchmitzandDrMatthias total shareholder return MDAX at30 actualtranche the fromderiving target the pershare tranche, earnings (EPS)beingweighted with at70 targets pershare” “earnings (EPS)and“rank totalThe two shareholder performance return MDAX” are relevant for but iscappedat150 Executive Board member, so-calledactualtranche. the Theactualtranche canexceed below orfall target the tranche targets have shares actually performance duetoextent these the beenmet numberofperformance andthe what to determined be will it – period targetsperformance (the so-called the “target – tranche”).four After fiscal years shares, and depending on condition whetherthat on the they meetso-called performance pre-defined performance agreements, employment are promisedtheir each fiscal shares within year a contractuallystipulated amount of virtual The LTIP stock options program. Beginninginfiscal isavirtual year Program Incentive Long-Term the consolidated financial statements for the last fiscal year of the performance period. consolidatedthe statements financialfiscalthe last for theperformance yearof € shares issuedin2013andprevious fiscal the years, relevant share price the for calculating LTIP payment islimited to 30trading first ing the days the performance immediatelyFor period. subsequent daythe last to the performance of company’s situated closingshare inXETRA orasimilarly prices trading system Stock Frankfurt atthe Exchange dur The relevant share usedfor price LTIP calculatingthe payment shallcorrespond to weighted the average ofthe shares place. issuedover numberofperformance in the fifth shareholder AG return ifFraport better target; MDAX ranks increase five, than performance there willnot beafurther sharesby AGwillbeissuedfor rank points.IfFraport the 2.5percentage total worse 45,noperformance ranks than itsweightedwith average. For eachrank exceeding below orfalling actualtranche 25,the isincreased orreduced number25amongtotal ranks shareholder period, return AG, MDAX performance the during Fraport if tranche target the equal shall tranche target,actual four the relevantperformance The fiscal years willbe weighteddownwards. total shareholder return (share development price EPS the aswith Just anddividends) over period. performance the determining weighted the average rank AG of Fraport all companiesamongst listed MDAX in the in relation to the The extent to rank whichthe total shareholder return target MDAX hasbeenmet iscalculated by performance exceeding targetsmethod. the by Any more 25percentage performance than points is not taken into account. actualtranchethe amountsto 150 actual tranche amountsto 50 are issued for the EPS below target. actualEPSfalls Ifthe target the EPSby performance 25percentage points, the accordingly. below shares actualEPSfalls Ifthe target the EPSby points,noperformance more 25percentage than target shares tranche. actualEPSdiffers isadjustedtarget Ifthe fromthe the numberofallocated EPS, performance 60 per performance share. Entitlementto LTIP60 perperformance Board payments of by approval is established the by Supervisory the

%. If targets have If beenmet%. 100 % of the target% ofthe tranche. % of the target% ofthe tranche. actualEPSexceeds target Ifthe the EPSby points, 25percentage % of the target% ofthe tranche. Intermediate values canbecalculated usingastraight-line (LTIP) %. For the fiscal %. For the the previousyear 2013,asin year, shares 9,000performance % over the performance period, the actualtranche the corresponds period, to% over the performance the

%, the second for 30 for second the %,

2010, the Executive Board members of Fraport AG

%, the third for 20 for third the %, Group Notes/OtherDisclosures % andrank

% and the the and % -

177

Further Information Consolidated Financial Statements 178 Fraport Annual Report 2013 Group Notes / Other Disclosures

For all performance shares allocated from the fiscal year 2014 onwards, the LTIP payment is limited to 150 % of the product from the performance shares of the actual tranche multiplied by the “relevant share price at the time of issuance”. The “relevant share price at the time of issuance” corresponds to the weighted average of the company’s closing share prices in XETRA or a similarly situated trading system at the Frankfurt Stock Exchange during the month of January of the fiscal year, in which the relevant performance period begins.

Furthermore, for all LTIP performance share tranches that have already been allocated and will be in future, maximum payment amounts have been defined, which amounts to a maximum of € 810.0 thousand for Dr Schulte and for the other Executive Board members € 616.5 thousand per performance share tranche.

The rules for LTIP entitlements of former Executive Board members are largely the same as for the LSA. In addition, a former Executive Board member is not entitled to any performance shares for a target tranche whose performance period has lasted less than twelve months at the time the employment contract was legally terminated. The LTIP fair value accrual allocation resulted in the following expenses for the fiscal year: Dr Stefan Schulte € 648.8 thousand (previous year: € 370.5 thousand), Anke Giesen €233.3 thousand, Michael Müller € 128.7 thousand (previous year: € 50.2 thousand), Peter Schmitz € 532.6 thousand (previous year: € 256.3 thousand), Dr Matthias Zieschang € 532.6 thousand (previous year: € 256.3 thousand), Herbert Mai € 200.1 thousand (previous year: € 112.8 thousand).

Pension commitments The Executive Board members are entitled to pension benefits and provision for surviving dependents. An Executive Board member is generally entitled to retirement benefits if he or she becomes permanently unable to work or retires from office during the duration of, or upon expiry of, his or her employment agreement. If an Executive Board member dies, benefits are paid to his or her surviving dependents. These amount to 60 % of the retirement pension for the widow or widower; children entitled to receive benefits receive 12 % each. If no widow’s pension is paid, the children each receive 20 % of the retirement pension.

Upon retirement, income from active employment as well as retirement pension payments from previous or, where applicable, later employment relationships shall be credited against accrued retirement pay up until reaching 60 years of age, insofar as without such credit the total of these emoluments and the retirement pension would exceed 75 % of the fixed salary (100 % of the fixed salary if Fraport AG wishes the employment to be terminated or not be extended). Effective January 1 of each year, the pensions are adjusted at discretion, taking into account the interests of the former Executive Board member and the company’s economic situation. The adjustment obligation shall be considered to be satisfied if the adjustment does not fall below the increase in the consumer price index for the cost of living for private households in Germany.

The retirement pension of an Executive Board member is defined by the percentage of a contractually agreed basis of assessment, with the percentage rising annually by 2.0 % up to a limit of 75 %, dependent on the duration of time an Executive Board member is appointed.

As at December 31, 2013, Dr Schulte is entitled to 58.0 % of his fixed annual gross salary. Mr. Schmitz is entitled to 38.0 % of his fixed annual gross salary as at December 31, 2013. The basic account commitment (guideline 2 of the Fraport capital account plan – “Kapitalkontenplan Fraport” – concerning the company benefit plan for Senior Managers, dated February 26, 2002), to which Mr. Schmitz is entitled under Fraport AG’s company benefit plan up to December 31, 2008, shall be credited pro rata temporis against pension payments over a period of eight years after the employment contract has been terminated or expires. As at December 31, 2013, Dr Zieschang is entitled to 42.0 % of his fixed annual gross salary.

In the event of occupational disability, the pension rate for Dr Schulte, Mr. Schmitz and Dr Zieschang amounts to at least 55 % of their respective fixed annual gross salaries or of the contractually agreed basis of assessment. Fraport AnnualReport2013 capital is generatedcapital AG when Fraport annually credits 40 for orlife-long aone-timepensioncapital retirement insured paymentsthe event after becomedue.Thepension as well asprovision for long-term occupationaldisabilityare governed by a separate benefitagreement. Thiscalls For Executive Board members appointed pension benefitsdependents andprovision asof 2012, the for surviving AGof Fraport in2013isshown following inthe tables. Detailed informationcompensation components onthe Executive andamountofcompensation ofthe Board members agreed fixed basisofassessment. The retirement pensionentitlementofformer Executive Board membersisdetermined by ofacontractually apercentage No other benefitshave beenpromised to Executive Boardtheir employment members,should be terminated. generated incomeexceed 100 owedpayments by AG,ment Fraport compensation together inasmuchasthe retirement the with payments andother be paid. Partly payments shall be made monthly.anyretire Thecreditedgenerallyagainst be shall compensation- pursuant the HGBshall to Section90aof (fixed salary) reasonable form compensation inthe ofanannualgross salary Moreover, Executive eachmemberofthe Board hasentered into atwo-year restrictive covenant. term, this During receive grant amountof€ aone-timedeath inthe receives 25 60 to entitled is widower by aterm life insurance policy. IfanExecutive Board memberdieswhile collectingretirementthe widow benefits, or € receive 25 erated sofar. Ifthere isnoeligiblewidow orwidower, willreceive eachhalf-orphan 10 eventis no prior to giving rise retirementthe benefits benefits, the widow for or widower gen- the pension capital is dependentsofExecutive BoardThe surviving members appointed from 2012receive following the there benefits:If Board of62. memberreaches age the or self-employment iscredited retirement the the Executive against inwhich the month the endof benefitspaiduntil insurance policy.disability IncomeTax meaningofthe the Thefullamountofallincomewithin Act from employment pension payments increase inthe phaseandofpayments for increase the hasbeencovered by anoccupational pensionbenefitpayments, ofthe they will receive start postponed benefitof€ amonthly receiptthe the employment of pensionofto ofamonthly amaximumoffive contract.the Until start the years since Executive asmembersofthe Board, itisforeseen Executive that performed Board memberscanpostpone activities will increase it to this amount. In the event of long-term five theirfirst of the years within disability occupational € is lessthan 1ofeachyear for life-long reachedJanuary retirement pensioncapital ismade.Ifthe adjustment payments. Nofurther previous year pursuantto 3 HGB,whichisatleast Section253(2)ofthe commercial German valuation inthe balancesheetthe pensionobligations AG ofthe ofFraport endofthe atthe accumulated previousThe pension end capital of the at the year pays interest annually interest at the rate used for 600 thousand upon death, Fraport willincrease Fraport itto upondeath, amount.Thepayment600 thousand this increase ofthis hasbeencovered risk % of the pension capital generated asaone-timepayment. pensioncapital sofar % ofthe reached islessthan pensioncapital Ifthe % of the last retirement last above,% ofthe dependentsassetgranted. benefits the heirs there forth If are nosurviving 600 thousand whenretirement600 thousand fall dueasa benefits result oflong-term occupationaldisability, Fraport AG

% of the last retirement benefits granted. Each half-orphan receives benefits 10 retirement last the of % % of the last fixed salary received. fixed last % ofthe salary 8.0 thousand. % of the fixed annual gross salary paid to a pension account. fixed% of the gross annual salary % and at most 6 % andatmost %. Thisisincreased by 1 % and each full-orphan will % andeachfull-orphan 2.5 thousand. This risk of This risk 2.5 thousand. Group Notes/OtherDisclosures % and each full-orphan % on % on

179

Further Information Consolidated Financial Statements 180 Fraport Annual Report 2013 Group Notes / Other Disclosures

Remuneration of the Executive Board 2013 The following remuneration was paid to the members of the Executive Board:

Remuneration of the Executive Board 2013

in €´000 Remuneration paid out in cash Total

Performance- Performance- related related component with- component Non-performance-related out long-term with long-term components incentive effect incentive effect

In kind Fixed salary and other Bonus LSA

Dr Stefan Schulte 415.0 22.5 674.8 100.0 1,212.3

Anke Giesen 300.0 43.9 476.3 0.0 820.2

Michael Müller 300.0 47.0 296.4 0.0 643.4

Peter Schmitz 300.0 33.1 476.3 70.0 879.4

Dr Matthias Zieschang 320.0 43.9 523.9 70.0 957.8

Total 1,635.0 190.4 2,447.7 240.0 4,513.1

Table 137

Remuneration of the Executive Board 2013

in €´000 Share-related remuneration

Performance-related component with long-term incentive effect

LTIP

Dr Stefan Schulte 346.7

Anke Giesen from Jan. 1, 2013 263.9

Michael Müller 136.7

Peter Schmitz 263.9

Dr Matthias Zieschang 263.9

Total 1,275.1

Table 138

The bonus includes the payments on account for the fiscal year 2013 and the addition to the bonus provision in 2013.

The Supervisory Board will decide on the final bonus for 2013 in fiscal year 2014.

LTIP is carried at fair value as at the time of offer.

The following total remuneration was paid to the members of the Executive Board in 2012:

Remuneration of the Executive Board 2012

in €´000 Remuneration paid out in cash Total

Performance- related compo- nent without long-term incen- Non-performance-related components tive effect

In kind Fixed Salary and other Bonus

Dr Stefan Schulte 415.0 22.3 662.4 1,099.7

Michael Müller from Oct. 1, 2012 75.0 10.3 72.7 158.0

Peter Schmitz 300.0 37.5 467.5 805.0

Dr Matthias Zieschang 320.0 40.1 514.3 874.4

Herbert Mai until Sept. 30, 2012 225.0 30.2 350.6 605.8

Total 1,335.0 140.4 2,067.5 3,542.9

Table 139 Fraport AnnualReport2013 Remuneration of the Executive Board 2012 Board Executive the of Remuneration of relevant invoices inatotal amountof€ granted atotal of€ gross allowance of€ fortwo context ofheradditionalexpenses maintaining the households,AnkeWithin Giesen was granted amonthly to holdisincreased to afullyear’s atleast gross salary. ExecutiveIf the Board memberisreappointed, equivalent the value shares ofthe anExecutive Board memberisobliged togation purchase andholdshares isreduced pro employment ifthe rata contract hasatermfive oflessthan years. respective contract ofemployment. AG holdingsofFraport Already existing shares are taken into account.Theobli- halfayear’sat least (cumulativethe timeofpurchase) at fixedthem cost andhold the durationthe for gross of salary ExecutiveEach memberofthe Board hasentered into to anobligation purchase shares AG inFraport amountingto Other agreements Board Executive the of members active currently to obligations Pension Pension to obligations currently active Executive Board memberswere asfollows: Executive Board dependents.Current pensionpayments membersandtheir amounted to € future of€ Of the pensionobligations Provisions for pensions and similar obligations members amounted to € in 2013, which resulted of € in anexpense owned 1,800 stock options from MSOP 2005, tranche 2009. These stock options were fully exercised by Michael Müller fiscal in the the optionyear from of the period-appropriate distribution value: Infiscal year2013,only MichaelMüller In accordance stock IFRS2,the option with programs are recorded through profit andlosslead expense to an

Total Anke GiesenfromJan.1,2013 Dr MatthiasZieschang Peter Schmitz Michael Müller Dr StefanSchulte

Total Herbert MaiuntilSept.30,2012 Dr MatthiasZieschang Peter Schmitz Michael MüllerfromOct.1,2012 Dr StefanSchulte in €´000 in €´000 24.0 thousand for24.0 thousand 2013.Inaddition,relocation were costs covered by AG Fraport uponsubmission 2 thousand for twelve months after the start of the employment ofthe contract. forAccordingly,2 thousand twelve start the after months shewas 42.2 thousand.

32,105 relates €24,035thousand thousand, to owed pensionobligations to former 9.5 thousand. 12.6 thousand. In the previous Inthe 12.6 thousand. year, for Executive expense the the Board Performance-related componentwithlong-termincentiveeffect Performance-related

Dec. 31,2012 Obligation 7,505 1,654 1,799 4,019 33 0

Change 1,740 thousand in2013. 1,740 thousand Group Notes/OtherDisclosures Share-related remuneration 2013 564 136 143 128 118 39

Dec. 31,2013 Obligation Table 140 Table 141 8,069 1,797 1,838 4,137 937.8 222.1 222.1 201.8 291.8 LTIP 136 161 0.0

181

Further Information Consolidated Financial Statements 182 Fraport Annual Report 2013 Group Notes / Other Disclosures

The employment contract of Herbert Mai provides for a two-year post-employment restrictive covenant following the end of his employment on September 30, 2012. The compensation to be paid to Mr. Mai by Fraport AG as set out in Section 90a of the HGB was € 150.0 thousand for 2013. Pursuant to the employment contract, the above-mentioned compensation shall be credited against the retirement payments inasmuch as the compensation together with other generated income received exceeds 100 % of the last fixed annual gross payment received. Furthermore, Mr. Mai received pension benefit payments of € 135.0 thousand, a proportional bonus for the fiscal year 2012 of € 350.6 thousand and a proportional payment of the LSA for the fiscal year 2010 of € 64.2 thousand.

The former Chairman of the Executive Board, Prof Dr Wilhelm Bender, continued to render consulting services to Fraport AG even after his departure from the company. The consulting agreement, which ended in 2011, was extended for another two years and ended on August 31, 2013. For this and other tasks, Fraport AG supplied Prof Dr Bender with offices, office equipment and supplies and an assistant until August 31, 2013. Prof Dr Bender did not receive any compensation from Fraport AG for his activities. Until August 31, 2011, travel expenses were reimbursed upon authorization and approval of the trip according to the applicable company guidelines. After this time, travel expenses were no longer reimbursed.

Prof Dr Bender also received pension payments of € 252.4 thousand. Prof Dr Bender has agreed that the post-employment restrictive covenant, which applies for two years after the employment agreement ends, was extended for an additional two years up to August 31, 2013. Prof Dr Bender waived the right to compensation as set out in Section 90a of the HGB payable by Fraport AG from January 2011.

Other benefits Executive Board members have as other benefits the option of private use of a company vehicle with a driver, private use of a company cell phone, a D & O liability insurance with a deductible pursuant to Section 93 (2) sentence 3 of the AktG, an accident insurance and a life-time entitlement to use the VIP service of Fraport AG, as well as access to a parking spot at Frankfurt Airport. Fraport AG reimburses travel costs for company trips and other business expenses in line with the regulations in general use at Fraport AG.

Disclosures pursuant to Section 15a of the WpHG Pursuant to Section 15a of the WpHG, members of the Fraport Executive Board and Supervisory Board are required to disclose transactions with shares of Fraport AG or any related financial instruments to the company and the German Federal Financial Supervisory Authority (BaFin) within five business days. This also applies to persons who are closely related to members of the Executive Board and Supervisory Board as defined in Section 15a (3) of the WpHG. These transactions have been published by Fraport in accordance with the deadlines under Section 15a of the WpHG.

Remuneration of the Supervisory Board in fiscal year 2013 The remuneration of the Supervisory Board is laid down in Section 12 of the Statutes of Fraport AG. It is provided solely as fixed remuneration. According to this, every member of the Supervisory Board shall receive a fixed compensation of € 22.5 thousand for each full fiscal year payable at the end of the fiscal year, the Chairman and the Chairman of the finance and audit committee shall receive twice that amount, the Vice Chairman and the Chairmen of the other committees shall each receive one and a half times this amount. For their membership on a committee, Supervisory Board members receive an additional, fixed compensation of € 5 thousand per committee for each full fiscal year. This additional compensation is paid for a maximum of two committee memberships. Supervisory Board members that become members of or leave the Supervisory Board during the current fiscal year receive pro rata compensation. The same holds true in the case of any change in the membership of committees. Each Supervisory Board member receives € 800 for every Supervisory Board meeting he or she attends and every committee meeting attended of which he or she is a member. Accrued expenses will also be reimbursed. Fraport AnnualReport2013 The following remuneration was paid to the members of the Supervisory Board for fiscal year 2013: year fiscal for Board The following remuneration was paidtoSupervisory membersofthe the (previous year: € Board received an aggregate compensation of € All active Supervisory members of the Remuneration of Board the 2013 Supervisory (previous year: € BoardIn fiscal amounted year 2013,aggregateto € the Economic compensationAdvisory of independently. and € Board, acompensation of€ EconomicAdvisory For membershiponthe 2013 year fiscal in Board Advisory Economic the of Compensation

Prof Dr-IngKatja Karlheinz Christian Edgar Werner Hans-Jürgen Gerold Dr hcPetra Gabriele Arno Mehmet Michael Stefan H. Dr Roland Lothar Erdal Jörg-Uwe Dr Margarete Peter Detlef Kathrin Hakan Uwe Mario A. Devrim Claudia Ismail

Supervisory BoardMember Supervisory in € 2,000 permeeting receiving amount.Travel attended, Chairman twicethat the with are reimbursed expenses 93.0 thousand). 853.4 thousand).

Windt Weimar Strenger Stejskal Schmidt Schmidt Schaub Roth Rieken Prangenberg Özdemir Odenwald Lauer Krieg Klemm Kina Hahn Haase Feldmann Draths Dahnke Cicek Becker Bach Arslan Amier Aydin

Fixed salary 22,500.00 45,000.00 18,750.00 22,500.00 22,500.00 22,500.00 33,750.00 22,500.00 13,125.00 22,500.00 22,500.00 22,500.00 22,500.00 33,750.00 35,625.00 22,500.00 13,125.00 13,125.00 13,125.00 13,125.00 19,687.50 9,375.00 1,875.00 9,375.00 7,500.00 9,375.00 9,375.00

remuneration 2,500 ispaidfor year every ofmembership Committee 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 4,166.67 6,666.67 5,000.00 4,166.67 5,000.00 2,916.67 5,000.00 5,000.00 2,083.33 4,763.90 3,333.33 2,916.67 2,916.67 5,597.23 2,083.33 5,833.33 5,833.33 2,083.33 833.33 0.00

Attendance 12,800.00 19,200.00 10,400.00 11,200.00 12,800.00 11,200.00 11,200.00 16,800.00 13,600.00 12,000.00 11,200.00 9,600.00 5,600.00 2,400.00 6,400.00 5,600.00 4,000.00 2,400,00 6,400.00 4,000.00 5,600.00 6,400.00 7,200.00 2,400.00 6,400.00 2,400.00 889.5 thousand in 2013889.5 thousand Group Notes/OtherDisclosures 0.00 fees

90.5 thousand 45,300.00 64,600.00 28,516.67 51,700.00 39,566.67 38,700.00 56,550.00 15,941.67 38,700.00 22,441.67 33,100.00 26,500.00 38,700.00 49,300.00 13,858.33 57,350.00 57,625.00 33,663.90 14,833.33 21,641.67 22,441.67 25,922.23 13,858.33 25,358.33 36,720.83 13,858.33 2,708.33 Table 142 Total

183

Further Information Consolidated Financial Statements 184 Fraport Annual Report 2013 Group Notes / Other Disclosures

53 Executive Board

Mandates of the Executive Board

Members of the Executive Board Memberships in mandatory Supervisory Boards and comparable control bodies

Chairman of the Executive Board Member of the Supervisory Board: Dr Stefan Schulte > Deutsche Post AG

Executive Director Ground Handling Anke Giesen

Executive Director Labor Relations Chairman of the Supervisory Board: Michael Müller > APS Airport Personal Service GmbH (until March 19, 2013) > FraSec Fraport Security Services GmbH

Member of the Shareholders’ Meeting: > Airport Cater Service GmbH > Medical Airport Service GmbH > Terminal for Kids gGmbH (from May 6, 2013)

Executive Director Operations Peter Schmitz

Executive Director Controlling & Finance Chairman of the Supervisory Board: Dr Matthias Zieschang > Flughafen Hannover-Langenhagen GmbH

Vice Chairman of the Supervisory Board: > Shanghai Frankfurt Airport Consulting Services Co., Ltd.

Member of the Supervisory Board: > Fraport IC Ictas Antalya Havalimani Terminal Yatirim ve Isletmeciligi Anonim Sirketi

Member of the Shareholders’ Meeting: > Flughafen Hannover-Langenhagen GmbH

Member of the Administrative Board: > Frankfurter Sparkasse

Table 143

54 Supervisory Board

Mandates of the Supervisory Board

Members of the Supervisory Board Memberships in mandatory Supervisory Boards and comparable control bodies

Chairman Member of the Advisory Board: Karlheinz Weimar > Höchster Porzellan-Manufaktur GmbH Former Finance Minister of the State of Hesse Head of the Bundesanstalt Member of the University Council: für Finanzmarktstabilisierung > University Frankfurt am Main

(Compensation 2013: €64,600; 2012: €64,600)

Vice Chairman Vice Chairman of the Supervisory Board: Gerold Schaub > LSG Lufthansa Service Holding AG Regional Director Traffic ver.di Hessen > APS Airport Personal Service GmbH > LSG Sky Chefs Frankfurt ZD GmbH (Compensation 2013: €56,550; 2012: €54,950)

Claudia Amier Chairperson of the Works Council (from May 31, 2013)

(Compensation 2013: €36,720.83)

Devrim Arslan Member of the Supervisory Board: Chairman of the Works Council APS Airport Personal Service GmbH > APS Airport Personal Service GmbH (from May 31, 2013)

(Compensation 2013: €25,358.33)

Ismail Aydin Vice Chairman of the Works Council (until May 31, 2013)

(Compensation 2013: €13,858.33; 2012: €35,500) Fraport AnnualReport2013 Mandates (Compensation 2013:€33,663.90;2012:€9,900) Lord MayoroftheCityFrankfurtamMain Peter Feldmann (Compensation 2013:€21,641.67) (from May31,2013) Wilh. Werhahn KG Member oftheExecutiveBoard Kathrin Dahnke (Compensation 2013:€25,922.23) (from May31,2013) City Treasurer oftheCityFrankfurtamMain Uwe Becker (Compensation 2013:€14,833.33) 1,2013untilMay31,2013) (from February Member oftheWorks Councilrelievedofduty Detlev Draths (Compensation 2013:€22,441.67) (from May31,2013) Member oftheWorks Council Hakan Cicek (Compensation 2013:€13,858.33;2012:€7,225) (until May31,2013) Team LeaderofGroupIdeaManagementFraportAG Mario A.Bach Board Members oftheSupervisory of Board the Supervisory > Board: Member oftheAdvisory > Member oftheExecutiveBoard: > > > > > > > > > of businessenterprises: Boardsandcomparable controlbodies Membership inSupervisory > > > Board: Chairman oftheSupervisory > Board: Member oftheSupervisory > Member oftheWorks Commission: > > > > > > > > > > > > > > > > > > > > Membership incomparablecontrolbodies: > > > > > > > controlbodies: Membership inmandatory comparable controlbodies Boardsand Supervisory Memberships inmandatory

Frankfurt EconomicDevelopment–GmbH (from November1,2013) und EntwicklungsgesellschaftmbH und BeteiligungsgesellschaftmbH Development –GmbH für ProjektentwicklungenmbH mit beschränkterHaftung und BeteiligungsgesellschaftmbH Thüga AG Sparkassenzweckverband Nassau Landesbank HessenThüringen(Helaba)(from March 13,2013) Wirtschaftsförderung Frankfurt– Tourismus- und CongressGmbHFrankfurtamMain Schirn KunsthalleFrankfurtamMainGmbH Rhein-Main-Verkehrsverbund GmbH(fromApril30,2013) Nassauische HeimstätteWohnungsbau- Gas UnionGmbH(fromNovember6,2013) FrankfurtRheinMain GmbHInternationalMarketingoftheRegion Alte OperFrankfurtKonzert-undKongresszentrumGmbH Stadtwerke FrankfurtamMainHoldingGmbH Messe FrankfurtGmbH ABG FRANKFURT HOLDING Wohnungsbau- Younicos AG Kommunale Wohnungsgesellschaft Ginsheim-Gustavsburg Zentrale Errichtungsgesellschaftmit beschränkterHaftung Wirtschaftsförderung Frankfurt–Frankfurt Economic Tourismus- undCongressGmbHFrankfurt amMain Sportpark StadionFrankfurtamMain Gesellschaft Sparkassenzweckverband Nassau Klinikum FrankfurtHöchstGmbH Nassauische Sparkasse Frankfurt RheinMainGmbH Gemeinnützige Kulturfonds Gateway GardensProjektentwicklungs-GmbH Gas-Union GmbH(Chairman) Erdgas Westthüringen Beteiligungsgesellschaft mbH Dom RömerGmbH Volkshochschule FrankfurtamMain Städtische KlinikenFrankfurtamMain-Höchst Kita Frankfurt Stadtentwässerung FrankfurtamMain Marktbetriebe derStadtFrankfurtamMain Kommunale Kinder-,Jugend-undFamilienhilfe FrankfurtamMain Hafenbetriebe derStadtFrankfurtamMain AVA AbfallverbrennungsanlageNordweststadt Gesellschaft Süwag EnergieAG Stadtwerke FrankfurtamMainHoldingGmbH Messe FrankfurtGmbH Mainova AG(Chairman) Frankfurter Aufbau-Aktiengesellschaft ABG FRANKFURTHOLDINGWohnungsbau- Stadtwerke Verkehrsgesellschaft Frankfurt amMainmbH(Chairman) Group Notes/OtherDisclosures Table 144 185

Further Information Consolidated Financial Statements 186 Fraport Annual Report 2013 Group Notes / Other Disclosures

Mandates of the Supervisory Board

Members of the Supervisory Board Memberships in mandatory Supervisory Boards and comparable control bodies

Karl Ulrich Garnadt Vice Chairman of the Supervisory Board: Chairman of the Executive Board Lufthansa Cargo AG > Österreichische Luftverkehrs-Holding GmbH (from February 13, 2014) Member of the Supervisory Board: > Austrian Airlines AG

Dr Margarete Haase Membership in comparable control bodies within the meaning Member of the Executive Board DEUTZ AG of Section 125 of the AktG: > DEUTZ (Dalian) Engine Co. Ltd. (Compensation 2013: €57,625; 2012: €42,698.91) > Deutz Engines (Shandong) Co. Ltd. (Chairperson) > Deutz Engines (China) Ltd. Co. (Chairperson) (from November 21, 2013)

Member of the Supervisory Board: > ElringKlinger AG > ZF Friedrichshafen AG

Jörg-Uwe Hahn Vice Chairman of the Supervisory Board: Former Hessian Minister of Justice, for Integration and Europe > ALEA Hoch- und Industriebau AG

(Compensation 2013: €57,350; 2012: €54,150) Member of the Supervisory Board: > HA Hessen Agentur GmbH > hr-Senderservice GmbH > WV Energie AG

Member of the Advisory Board: > ÖD-Beirat DBV-Winterthur

Erdal Kina Member of the Works Council (until May 31, 2013)

(Compensation 2013: €13,858.33; 2012: 35,500)

Lothar Klemm Chairman of the Supervisory Board: Former Hessian State Minister > Dietz AG > Variolog AG (Compensation 2013: €49,300; 2012: €49,300) Member of the Supervisory Board: > IQB Career Services AG

Dr Roland Krieg Chairman of the Supervisory Board: Head of the service unit Information and Telecommunications > AirIT Services AG > operational services GmbH & Co. KG (Compensation 2013: €38,700; 2012: €15,758.35) Member of the Supervisory Board: > FraSec Fraport Security Services GmbH (from September 1, 2013)

Member of the Shareholders’ Meeting: > AirITSystems GmbH > operational services GmbH & Co. KG

Chairman of the Board (BoD): > Air-Transport IT Services, Inc. (USA) (until August 31, 2013)

Stefan H. Lauer Chairman of the Supervisory Board: (until December 31, 2013) > Austrian Airlines AG (until June 27, 2013) > Lufthansa Flight Training GmbH (until June 30, 2013) (Compensation 2013: €26,500; 2012: €25,700) Member of the Supervisory Board: > LSG Lufthansa Service Holding AG (until June 30, 2013) > Lufthansa Cargo AG > Pensions-Sicherungs-Verein VVaG (until June 30, 2013) > ESMT European School of Management and Technology GmbH (until May 28, 2013)

Member of the Administrative Board: > Landesbank Hessen-Thüringen Girozentrale

Vice Chairman of the Administrative Board: > Swiss International Air Lines AG (until September 30, 2013)

Member of the Board of Directors: > Aircraft Maintenance and Engineering Corp. (Vice Chairman) > SN Airholding SA/NV (until July 1, 2013) > Günes Ekspres Havacilik A.S. (Sun Express) (Vice Chairman)

Michael Odenwald Chairman of the Supervisory Board: State Secretary of the German Federal Ministry for Transport > DFS Deutsche Flugsicherung GmbH and Digital Infrastructure Member of the Supervisory Board: (Compensation 2013: €33,100; 2012: €2,312.10) > Deutsche Bahn AG > DB Mobility Logistics AG Fraport AnnualReport2013 Mandates (Compensation 2013:€39,566.67;2012:€35,500) Member oftheWorks Council Werner Schmidt (Compensation 2013:€15,941.67;2012:€42,900) (until May31,2013) Former LordMayoroftheCityFrankfurtamMain Dr hcPetraRoth (Compensation 2013:€2,708.33;2012:€43,700) 31,2013) (until January Member oftheWorks Council Gabriele Rieken (Compensation 2013:€38,700;2012:€37,900) Auditor, Tax Consultant Arno Prangenberg (Compensation 2013:€22,441.67) (from May31,2013) Member oftheWorks Council Mehmet Özdemir (Compensation 2013:€45,300; 2012:€17,837.02) Jacobs UniversityBremengGmbH Professor ofGlobalProductionLogistics Prof Dr-IngKatjaWindt (Compensation 2013:€28,516.67;2012:€67,800) (until May31,2013) Christian Strenger (Compensation 2013:€51,700;2012:€48,500) Chairman oftheGroupWorks Council Edgar Stejskal (Compensation 2013:€38,700;2012:€37,900) Chairman kombagewerkschaftKreisverbandFlughafenFrankfurt/Main 1. StateViceChairmankombagewerkschaftHessen Hans-Jürgen Schmidt Board Members oftheSupervisory

of Board the Supervisory > Member oftheScientificBoard: > Board: Member oftheAdvisory > Board: Member oftheSupervisory > Member oftheExecutiveBoard: > > > Board: Member oftheSupervisory > Board: Chairman oftheSupervisory > Board: Member oftheSupervisory > Board: Member oftheSupervisory > Vice ChairmanoftheExecutiveBoard: > Chairman oftheExecutiveBoard: > > Board: Member oftheAdvisory > > > of businessenterprises: Membership incomparablecontrolbodies > > Board: Member oftheSupervisory > Board: Chairperson oftheSupervisory comparable controlbodies Boardsand Supervisory Memberships inmandatory

Bundesvereinigung Logistik(BVL)e.V. BLG LOGISTICSGROUPAG&Co.KG Deutsche PostAG Bundesvereinigung Logistik(BVL)e.V. TUI AG Evonik IndustriesAG(untilMarch 11,2013) DWS InvestmentGmbH The GermanyFunds(USA) Airmail CenterFrankfurtGmbH GmbH FraSec FraportSecurityServices komba gewerkschaft,KreisverbandFlughafenFrankfurt/Main Arbeitsgemeinschaft unabhängigerFlughafenbeschäftigter(AUFe.V.) Thüga AG Deutsche Vermögensberatung AG 5,2013) Eurex ZürichAG(fromFebruary Grontmij A&TGmbH Gas-Union GmbH AXA KonzernAG,Köln Thüga HoldingGmbH&Co.KGaA Mainova AG(Groupmandate)(untilMay30,2013) Group Notes/OtherDisclosures Table 144 187

Further Information Consolidated Financial Statements 188 Fraport Annual Report 2013 Group Notes / Other Disclosures

55 Disclosure of shareholding according to Section 313 (2) of the HGB

Subsidiaries

Name and registered office Shareholding Equity Result in % (according (according to IFRS) to IFRS) in €’000 in €’000

2013 100 1,436 – 40

Afriport S.A., Luxemburg/Luxemburg 2012 3.24 1,476 – 39

2013 100 2,233 355

AirlT Services AG, Lautzenhausen 2012 100 2,019 326

2013 100 144,015 8,301 Airport Assekuranz Vermittlungs-GmbH, Frankfurt am Main 2012 100 135,703 8,461

2013 100 26 0

Airport Cater Service GmbH, Frankfurt am Main 2012 100 26 0

2013 100 5,873 438

Air-Transport IT Services, Inc., Orlando/USA 2012 100 5,673 744

2013 100 40,478 3,339 Antalya Havalimani Uluslararasi Terminal Isletmeciligi Anonim Sirketi, Istanbul/Turkey 2012 100 47,028 – 226

2013 100 1,401 851

APS Airport Personal Service GmbH, Frankfurt am Main 2012 100 1,276 726

2013 100 591 – 103 1)

Daport S.A., Dakar/Senegal 2012 3.24 1,010 – 265 1)

2013 100 2,060 1,961

Energy Air GmbH, Frankfurt am Main 2012 100 3,485 3,387

2013 100 54 – 11 1) Flughafen Frankfurt Main (Greece) Monoprosopi EPE, Athens/Greece 2012 100 66 – 12 1)

2013 51 1,262 119

FraCareServices GmbH, Frankfurt am Main 2012 51 1,343 116

2013 100 87,503 1,696

Fraport Asia Ltd., Hong Kong/China 2012 100 89,017 4,394

2013 100 17,265 – 3,542

Fraport Cargo Services GmbH, Frankfurt am Main 2012 100 31,753 3,963

2013 100 40,531 300

Fraport Casa GmbH, Neu-Isenburg 2012 100 20,824 – 155

2013 100 1,251 – 1 11)

Fraport Casa Commercial GmbH, Neu-Isenburg 2012 100 28 0

2013 100 11,535 4,030 2) 3) Fraport Immobilienservice und -entwicklungs GmbH & Co. KG, Flörsheim am Main 2012 100 11,863 5,718 2) 3)

2013 100 100,757 1,875

Fraport Malta Business Services Ltd., St. Julians/Malta 2012 100 77,243 1,745

2013 100 103,569 3,080

Fraport Malta Ltd., St. Julians/Malta 2012 100 80,450 3,489

2013 100 25 1

Fraport Objekte 162 163 GmbH, Flörsheim am Main 2012 100 24 1

2013 99.99 – 3,180 0 1)

Fraport (Philippines) Services, Inc., Manila/Philippines 2012 99.99 – 3,494 0 1)

2013 99.99 368 212

Fraport Peru S.A.C., Lima/Peru 2012 99.99 424 165

2013 51 657 307 FPS Frankfurt Passenger Services GmbH, Frankfurt am Main 2012 51 443 210 Fraport AnnualReport2013 Subsidiaries FRA -Verkehrszentrale GmbH,Neu-Isenburg Frankfurt amMain GmbH, FraSec FraportSecurityServices Frankfurt amMain VCS Verwaltungsgesellschaft mbH, fürCleaningService Media FrankfurtGmbH,amMain Lima AirportPartnersS.R.L.,Lima/Peru International Aviation Security, Lda.,Lisbon/Portugal London/Great Britain International Aviation Security(UK)Ltd., Airport Frankfurt/MainKG,FrankfurtamMain mbH&Co. GCS GesellschaftfürCleaningService Varna/Bulgaria Fraport Twin StarAirportManagementAD, FRA -Vorfeldkontrolle GmbH,Neu-Isenburg FRA -Vorfeldaufsicht GmbH,Neu-Isenburg CompanyLtd.,Riyadh/SaudiArabia velopment Services Fraport SaudiArabiaforAirportManagementandDe- Flörsheim amMain Fraport RealEstate162163GmbH&Co.KG, Flörsheim amMain Fraport RealEstateVerwaltungs GmbH, Flörsheim amMain Fraport RealEstateMönchhofGmbH&Co.KG, Fraport ObjektMönchhofGmbH,FlörsheimamMain Name andregisteredoffice FSG Flughafen-Service GmbH,FrankfurtamMain FSG Flughafen-Service

2012 2012 2012 2012 2012 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2013 2013 2013 2013 2012 2013 2012 2013 2012 2013 2013 2012 2013 2013 2012 2013 2012 2013 2012

Shareholding 70.01 70.01 33.33 33.33 in % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 40 51 51 40 60 60

(according in €’000 to IFRS) 32,277 46,131 68,278 54,623 Equity 4,903 4,698 3,231 6,584 6,718 8,419 9,059 5,094 4,389 6,603 7,249 3,597 350 155 148 Group Notes/OtherDisclosures 28 28 38 39 13 42 89 27 29 24 25 0 0 0 0

(according in €’000 to IFRS) 24,523 26,378 13,668 12,424 Result 1,715 4,115 2,083 1,203 4,148 4,775 2,020 2,116 1,544 2,195 2,469 133 – 15 Table 145 97 15 47 80 73 0 0 0 0 0 1 2 2 1 1 0 0 1) 1) 1) 1) 3) 3) 1) 1) 2) 3) 2) 3) 2) 3) 2) 3)

189

Further Information Consolidated Financial Statements 190 Fraport Annual Report 2013 Group Notes / Other Disclosures

Joint ventures

Name and registered office Shareholding Equity Result in % (according (according to IFRS) to IFRS) in €’000 in €’000

2013 50 2,995 794

AirITSystems GmbH, Hanover 2012 50 3,214 999

2013 50 78,998 55,627 Fraport IC Ictas Havalimani Isletme Anonim Sirketi, Antalya/Turkey 2012 50 23,050 – 39

2013 50 – 51,699 66,338 Fraport IC Ictas Antalya Havalimani Terminal Yatirim ve Isletmeciligi Anonim Sirketi, Antalya/Turkey 2012 50 – 74,400 54,436

2013 50 231 – 40 1) Fraport IC Ictas Havalimani Yer Hizmetleri Anonim Sirketi, Antalya/Turkey 2012 50 275 – 89 1)

2013 16.66 262 51 Gateway Gardens Projektentwicklungs-GmbH, Frankfurt am Main 2012 16.66 211 – 19

2013 33.33 4,119 801 Grundstücksgesellschaft Gateway Gardens GmbH, Frankfurt am Main 2012 33.33 3,312 – 256

2013 50 6,090 1,169

Medical Airport Service GmbH, Kelsterbach 2012 50 5,381 1,054

2013 50 80 599

Multi Park II Mönchhof GmbH, Walldorf (Baden) 2012 50 761 – 34

2013 52 19,937 4,311 N*ICE Aircraft Services & Support GmbH, Frankfurt am Main 2012 52 17,031 1,404

2013 50 6,438 962

Pantares Tradeport Asia Ltd., Hong Kong/China 2012 50 5,713 964

2013 50 310 15 Shanghai Frankfurt Airport Consulting Services Co., Ltd., Shanghai/China 2012 50 299 13

2013 50 1,951 491

Terminal for Kids gGmbH, Frankfurt am Main 2012 50 1,460 322

Table 146

Associated companies

Name and registered office Shareholding Equity Result in % (according (according to IFRS) to IFRS) in €’000 in €’000

2013 40 4,535 1,402

Airmail Center Frankfurt GmbH, Frankfurt am Main 2012 40 4,274 1,683

2013 49 1,573 700 ASG Airport Service Gesellschaft mbH, Frankfurt am Main 2012 49 1,946 1,073

2013 30 133,306 – 2,084

Flughafen Hannover-Langenhagen GmbH, Hanover 2012 30 136,166 – 1,344

2013 24.5 425,437 10,273 Xi’an Xianyang International Airport Co., Ltd., Xianyang City/China 2012 24.5 427,634 11,417

2013 35.5 – 2,912 – 47,893 Thalita Trading Ltd., Lakatamia/Cyprus; Northern Capital Gateway LLC, St. Petersburg/Russia 2012 35.5 39,391 22,293

2013 18.75 – 9,725 2,592 10)

Tradeport Hong Kong Ltd., Hong Kong/China 2012 18.75 – 12,781 2,606 10)

Table 147 Fraport AnnualReport2013

Other investments Dr Schulte The Executive Board Worldwide Services Airport Frankfurt AGFraport am Main, MarchFrankfurt 4,2014 11) 10) 9) 8) 7) 6) 5) 4) 3) 2) 1)

Name andregisteredoffice Holdings, Inc.,PasayCity/Philippines(PTH) TerminalsPhilippine AirportandGroundServices Frankfurt amMain verderbliche GüterFrankfurtGmbH&Co.Betriebs-KG, Perishable-Center Verwaltungs-GmbH Zentrumfür Perishable-Center FrankfurtGbR,amMain Frankfurt amMain GmbH&Co.KG, operational services Ineuropa HandlingTeneriffa, U.T.E., Madrid/Spain Ineuropa HandlingMallorca, U.T.E., Madrid/Spain Ineuropa HandlingMadrid,U.T.E., Madrid/Spain Ineuropa HandlingAlicante,U.T.E., Madrid/Spain Bangalore/India Gateways forIndiaAirportsPrivateLtd., Delhi InternationalAirportPrivateLtd.,NewDelhi/India CIVAS EQUADOR,Quito/Ecuador Compañía deEconomiaMixtaValor ySeguridad THE SQUAIREGmbH&Co.KG,FrankfurtamMain Pasay City/Philippines(PIATCO) Philippine InternationalAirTerminals Co.,Inc., Manila/Philippines (PAGS) Inc., Philippine AirportandGroundServices, Manila/Philippines (PTI) Terminals,Philippine AirportandGroundServices Inc., für verderblicheGüterFrankfurt,FrankfurtamMain Perishable-Center Verwaltungs-GmbH Zentrum

Fraport hasnoinfluenceonfinancialandbusinesspolicies. A controlandprofittransferagreementisinplacebetweenthecompanyother shareholders; Former FRA-PositionsaufsichtGmbH. Pantares Tradeport Asia Ltd.holdsintotal37.5 Company withoutcashcontributions. Equity hasbeenlargelyorwhollyrepaid. Fiscal yearofthecompanyendsonMarch 31. There isnoinfluenceonfinancialandbusinesspolicies. Current financialstatementsnotyetavailable. of thelimitedpartnersarerecognized(accordingtoIAS32,theserepresentdebt). In theequityofcommercial partnerships,capitalsharesaswellinprofitandloss IFRS resultbeforeconsolidation. Company inactiveorinliquidation. Giesen % ofcapitalsharesTradeport HongKongLtd.

Müller 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2012 2007 2007 2007 2007 2012 2012 2012 2012 2013 2005 2013 2005 2013 2005 2013 2005 2012 2012 2013 2012

Shareholding 13.51 13.51 in % 2.4 2.2 40 50 20 20 20 20 10 35 50 20 20 20 20 10 35 30 30 40 40 40 40 40 10 10 4 0 4 0 Schmitz

local regulation) (according to – in €’000 153,498 144,130 565,131 12,941 98,747 – – – Equity 9,364 1,642 1,282 4,533 2,937 1,590 1,341 1,186 1,510 – 871 575 Group Notes/OtherDisclosures 2 2 – – – – – – – – – – – – – –

local regulation) (according to Dr Zieschang – in €’000 156,948 – 67,812 – Result 3,577 1,037 2,668 2,604 4,761 1,390 1,382 – – 762 270 786 833 456 214 Table 148

9 – – – – – – – – – – – – – – – – 3) 3) 4) 1) 4)5) 1) 4)5) 1) 4)5) 1) 4)5) 4) 4) 4) 4) 4) 9) 8) 8) 1) 4)5) 1) 5)7) 1) 4)5) 1) 5)7) 1) 4)5) 1) 5)7) 1) 4)5) 1) 7) 1) 1) 6) 6) 1) 4)5) 1) 4)5)

191

Further Information Consolidated Financial Statements 192 Fraport Annual Report 2013 Further Information Fraport Annual Report 2013 Further Information 193

External Activities & Services

More than 1,300,000 square meters...

570,000 passengers started their vacation on just one weekend at the beginning of the 2013 summer vacation. Added to this are those collecting passengers, employees and visitors to the airport. As the owner, Fraport operates Frankfurt Airport around the clock, 365 days a year. A good indoor climate is essential for ensuring that the passen- gers’ stay at the airport is of the highest quality. Spread out over a gross surface area of more than 1,300,000 square meters – an area bigger than the Frankfurt city center – some 3,000 fans provide a pleasant air quality. To achieve this, the air-conditioning systems circulate around 5,400,000 cubic meters of air every hour. Further Information 192 Fraport Annual Report 2013 Further Information

...with fresh air

To operate the air-conditioning system Fraport requires a softer water hardness level than regular mains water. For this reason, Fraport filters about 25,000 liters an hour into a special water-softening osmosis plant. The absence of this processing would result in the air-conditioning system becoming blocked and the average temperature in the terminals would rise. After about three days, the pollution of the air-conditioning technology would be so far advanced that the system would fail and individual sections of the terminals would have to be shut down. Regular maintenance and testing of the osmosis plant are therefore essential for Fraport. Fraport Annual Report 2013 Further Information 193 Further Information 194 Fraport Annual Report 2013 Further Information / Responsibility Statement

Responsibility Statement

To the best of our knowledge and in accordance with the applicable accounting principles, the consolidated financial statements give a true and fair view of the assets, financial and earnings position and profit or loss of the Group. Furthermore, the management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.

Frankfurt am Main, March 4, 2014

Fraport AG Frankfurt Airport Services Worldwide

The Executive Board

Dr Schulte Giesen Müller Schmitz Dr Zieschang Fraport AnnualReport2013 Auditor’s Report German PublicAuditorGerman Klaus-Dieter Ruske Wirtschaftsprüfungsgesellschaft Aktiengesellschaft PricewaterhouseCoopers amMain,MarchFrankfurt 4,2014 provides view asuitable Group’s ofthe offuture development. andrisks presents opportunities positionandsuitably the consolidated isconsistent the statements andasawhole requirements. with financial Thegroupreport management view andfair true net ofthe assets, financialpositionand results ofoperationsthe Group of inaccordancethese with by EU, additionalrequirements the the commercial ofGerman law pursuantto HGBandgive Section315a(1)ofthe a statementsthe consolidated findings of ouraudit, complyIn ouropinion,basedonthe IFRSs,asadopted financial with Our audithasnot ledto any reservations. ourauditprovidesthat areasonable basisfor ouropinion. evaluating overall the consolidated ofthe group presentation statements and financial We believe management report. usedandsignificantestimates accountingandconsolidationprinciples made the the Executiveby Board, as well as determination entitiesincluded inconsolidation,the ofthose statements ofentitiesto beincludedinconsolidation, framework onatest the basiswithin primarily examined annualfinancial audit.Theauditincludesassessingthe ofthe are disclosures consolidatedgroup the the inthe statements and management financialreport evidence supporting determinationin the of audit procedures. The effectivenessthe accounting-related of internal control systemthe and environmenteconomic andlegal asto are possiblemisstatements Group taken ofthe andexpectations into account are detected groupreport in the management reasonable with assurance. Knowledge businessactivitiesandthe ofthe frameworkoperations consolidated inthe statements inaccordancethe applicablefinancial financial reporting and with materially misstatements the netaudit suchthat affecting of the presentation assets, financialpositionand resultsof “Institute of Public Auditors in Germany”]. requireThose standards the weWirtschaftsprüfer that plan and perform generallyGerman accepted for standards statementspromulgated auditoffinancial the the IDWby der [Institut We conducted consolidated ourauditofthe statements inaccordancethe HGBand financial Section317of with basedonouraudit. groupthe statements andon management financial report responsibility parent ofthe company’s Executive Board. Ourresponsibility isto consolidated anopiniononthe express commercial law pursuant to Section HGB 315a [Handelsgesetzbuch(1) of the Commercial “German Code”] are the inaccordance IFRSs,asadopted with by report management EU, additionalrequirements the andthe ofGerman 1toyear December31,2013.Thepreparation consolidatedgroupthe ofthe statements and from financial January inequity, of changes statement group and the notes, for business the together group report the management with consolidatedthe consolidatedincome, the offinancialposition, statement ofcashflows, theconsolidated wide, Frankfurt We have audited- consolidatedWorld the statements prepared Services financial the by Airport Fraport AG Frankfurt / Main, comprising the consolidated consolidated the Main, comprising the incomestatement, ofcomprehensive statement German PublicAuditorGerman Klaus Jäcker Further Information/Auditor’s Report 195

FurtherFurther Information 196 Fraport Annual Report 2013 Further Information / Seven-Year-Overview

Seven-Year-Overview 1)

Consolidated income statement

€ million 2013 2012 2011 2010 2009 2008 2007

Revenue 2,561.4 2,442.0 2,371.2 2,194.6 2,010.3 2,101.6 2,329.0

Change in work-in-process 0.6 0.5 0.4 0.4 0.9 0.4 0.5

Other internal work capitalized 35.1 44.0 40.3 36.9 39.1 33.8 24.6

Other operating income 34.3 55.8 40.9 52.1 45.3 66.1 71.7

Total revenue 2,631.4 2,542.3 2,452.8 2,284.0 2,095.6 2,201.9 2,425.8

Cost of materials – 613.0 – 558.1 – 541.1 – 491.1 – 471.6 – 471.1 – 461.4

Personnel expenses – 946.8 – 942.9 – 906.3 – 880.4 – 866.9 – 925.6 – 1,143.3

Other operating expenses – 191.4 – 192.6 – 203.1 – 201.9 – 187.4 – 204.5 – 240.6

EBITDA 880.2 848.7 802.3 710.6 569.7 600.7 580.5

Depreciation and amortization – 352.1 – 352.7 – 305.7 – 279.7 – 268.8 – 241.5 – 245.2

Operating result/EBIT 528.1 496.0 496.6 430.9 300.9 359.2 335.3

Interest result – 177.0 – 174.1 – 144.4 – 137.7 – 99.7 – 71.0 – 25.3

Result from associated companies – 13.6 11.7 11.5 7.0 4.3 – 15.1 2.5

Income from investments 0.0 0.0 0.0 0.0 0.1 0.1 5.3

Write-down on financial assets 0.0 0.0 0.0 0.0 – 7.2 0.0 0.0

Other financial result 3.2 30.5 – 16.4 – 21.5 – 3.9 24.2 0.9

Financial result – 187.4 – 131.9 – 149.3 – 152.2 – 106.4 – 61.8 – 16.6

Result from ordinary operations/EBT 340.7 364.1 347.3 278.7 194.5 297.4 318.7

Taxes on income – 105.0 – 112.6 – 96.5 – 7.2 – 42.5 – 100.5 – 90.5

Group result 235.7 251.5 250.8 271.5 152.0 196.9 228.2

thereof profit attributable to non-controlling interests 14.7 13.3 10.4 8.6 5.6 7.2 5.0

thereof profit attributable to shareholders of Fraport AG 221.0 238.2 240.4 262.9 146.4 189.7 223.2

Earnings per €10 share in € (basic) 2.40 2.59 2.62 2.86 1.60 2.07 2.44

Earnings per €10 share in € (diluted) 2.39 2.58 2.60 2.85 1.59 2.05 2.42

Key figures 2013 2012 2011 2010 2009 2008 2007

EBITDA margin in % 34.4 34.8 33.8 32.4 28.3 28.6 24.9

EBIT margin in % 20.6 20.3 20.9 19.6 15.0 17.1 14.4

Return on revenue in % 13.3 14.9 14.6 12.7 9.7 14.2 13.7

Fraport assets in € million 5,545.3 5,152.3 4,447.3 4,019.7 3,820.2 3,419.1 3,075.0

ROFRA in % 9.5 9.6 11.2 10.7 7.9 10.5 10.9

Year-end closing price of the Fraport share in € 54.39 43.94 38.00 47.16 36.28 30.91 53.87

Dividend per share in € 1.25 2) 1.25 1.25 1.25 1.15 1.15 1.15

Financial position key figures Balance at Balance at Balance at Balance at Balance at Balance at Balance at Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2013 2012 2011 2010 2009 2008 2007

Profit earmarked for distribution in € million 115.4 115.5 115.4 115.6 106.2 105.6 105.3

Net financial debt in € million 2,975.4 2,934.5 2,647.0 2,024.4 1,614.5 925.6 338.0

Capital employed in € million 5,913.1 5,731.5 5,362.1 4,626.9 4,043.5 3,328.0 2,734.5

Gearing ratio in % 101.3 104.9 97.5 77.8 66.5 38.5 14.1

Debt-to-equity ratio in % 31.2 30.4 28.7 22.1 18.2 14.1 5.9

Dynamic debt ratio in % 517.6 530.7 427.8 356.7 378.5 187.9 67.6

Working capital in € million 910.9 1,057.8 977.6 1,878.4 2,030.0 919.7 218.0

1) Due to new accounting policies or shifts in Group definitions figures reported in previous years may differ. 2) Proposed dividend. € million position financial of statement Consolidated and profitearmarkedfordistribution) Shareholders‘ equity(lessnon-controllinginterests

Share oftotalassetsin% Goodwill Non-current assets Investments inairportoperatingprojects Shareholders’ equityratio Other intangibleassets Property, plantandequipment Investment property Investments inassociatedcompanies Other financialassets Other receivablesandfinancialassets Income taxreceivables Deferred taxassets Non-current assets Inventories Trade accountsreceivable Other receivablesandfinancialassets Income taxreceivables Cash andcashequivalents Non-current assetsheldforsale Current assets Fraport AnnualReport2013 Issued capital Capital reserve Revenue reserves Equity attributabletoshareholdersofFraportAG Non-controlling interests Shareholders’ equity Financial liabilities Trade accountspayable Other liabilities Deferred taxliabilities Provisions forpensionsandsimilarobligations Provisions forincometaxes Other provisions Non-current liabilities Financial liabilities Trade accountspayable Other liabilities Provisions forincometaxes Other provisions Liabilities inthecontextofassetsheldforsale Current liabilities Total assets

Change overthepreviousyearin% Non-current assets

Balance at Balance at Dec. 31, Dec. 31, 1,006.1 5,988.1 8,220.9 1,302.5 1,540.8 3,053.1 3,098.8 4,146.8 5,523.3 9,523.4 121.2 727.6 169.8 181.6 438.4 605.1 922.1 590.2 889.4 120.4 235.1 314.9 162.4 178.4 237.5 901.3 2013 2013 38.6 86.3 30.8 57.8 47.7 20.3 43.7 75.3 45.7 50.8 26.7 54.1 1.0 5.0 2.1 8.1

– – Balance at Balance at Dec. 31, Dec. 31, 1,031.2 5,927.3 8,140.8 1,499.8 1,403.2 2,912.5 2,948.2 4,401.0 1,006.4 5,893.1 9,640.6 136.6 742.7 117.1 180.0 385.2 821.9 921.3 588.0 102.5 211.2 196.6 214.4 163.2 219.8 799.3 2012 2012 38.6 84.4 29.0 44.2 34.4 19.5 49.2 77.7 35.0 35.7 64.4 27.4 80.2 4.8 3.0 5.3

– – Balance at Balance at Dec. 31, Dec. 31, 1,067.1 5,643.8 7,765.6 1,458.8 1,327.0 2,830.5 2,859.9 4,034.0 1,001.0 5,503.5 9,224.4 138.0 648.6 163.9 280.2 927.1 918.8 584.7 110.8 201.8 219.9 228.9 187.4 222.4 861.0 2011 2011 14.6 38.6 84.2 29.4 43.6 74.6 33.5 29.6 48.2 81.4 29.4 64.9 22.9 68.1 4.3 6.2 2.4

– –

Balance at Balance at Dec. 31, Dec. 31, 1,073.4 5,013.3 6,777.0 1,812.6 2,393.5 1,217.7 2,718.1 2,739.3 4,256.6 5,608.4 9,170.5 394.6 178.3 319.2 918.4 582.0 949.2 105.5 147.0 151.8 274.6 180.5 203.0 822.8 2010 2010 38.6 73.9 28.4 32.4 34.0 97.1 20.9 29.6 43.1 77.9 21.2 60.0 22.1 68.0 12.9 6.7 7.1 5.5

– – Further Information/Seven-Year-Overview

Balance at Balance at Dec. 31, Dec. 31, 1,098.4 4,486.4 6,353.0 1,802.3 2,512.2 1,039.2 2,535.2 2,557.8 4,126.9 5,575.4 8,865.2 474.7 158.4 492.2 917.7 578.3 114.7 904.7 143.9 135.0 129.9 118.9 219.8 147.7 238.9 732.0 2009 2009 26.8 40.0 71.7 27.4 34.0 34.7 72.9 20.0 23.6 68.3 54.0 22.6 20.3 1.1 5.3 6.7

– –

Balance at Balance at Dec. 31, Dec. 31, 3,968.6 5,008.4 1,154.8 1,570.0 1,018.8 2,508.0 2,568.2 1,685.3 2,806.5 1,203.7 6,578.4 597.6 205.4 154.9 205.1 916.1 573.1 192.9 514.8 123.5 170.0 101.0 555.5 393.8 188.9 2008 2008 22.7 76.1 36.5 33.3 72.4 42.4 26.6 30.4 47.4 60.2 19.0 63.6 7.4 0.2 9.0 7.8 1.9

– –

Balance at Balance at Dec. 31, Dec. 31, Table 149 3,628.6 4,664.1 1,100.8 1,022.0 2,501.8 2,534.8 2,074.8 1,155.3 5,764.9 570.3 252.2 154.6 651.3 165.6 914.6 565.2 830.6 365.6 451.7 108.3 163.0 136.2 367.8 441.5 185.3 2007 2007 36.4 22.7 80.9 41.6 43.9 10.1 37.1 58.5 33.5 39.5 76.6 13.2 33.0 19.4 75.7 14.2 70.8 197 6.7 7.2

FurtherFurther Information 198 Fraport Annual Report 2013 Further Information / List of Graphics and Tables

List of Graphics and Tables

List of Graphics List of Tables

Group Management Report Cover Page Graphic Page Table 24 1 Passenger development at Group airports C2 1 Financial performance indicators in which an interest of at least 50 % is held C2 2 Non-financial performance indicators 25 2 Development of Group revenue, Group EBITDA and Group result C2 3 Employees 25 3 Development of key figures of the consolidated statement C3 4 Fraport Segments – Aviation of cash flows and the consolidated statement of financial position C3 5 Fraport Segments – Retail & Real Estate 27 4 Segment structure C3 6 Fraport Segments – Ground Handling 28 5 Revenue by region C3 7 Fraport Segments – External Activities & Services 28 6 Employees by region 29 7 Agenda 2015 To our Shareholders 46 8 2013 passenger and cargo development at Frankfurt Airport Page Table 48 9 Group revenue and return on revenue 19 8 Composition of the Supervisory Board 49 10 Group EBITDA and EBITDA margin 20 9 Committees of the Supervisory Board 49 11 Group result and earnings per share 50 12 Aviation Group Management Report 50 13 Retail & Real Estate Page Table 51 14 Ground Handling 25 10 Target/actual comparison of major forecasts for 2013 51 15 External Activities & Services 26 11 Composition of the Supervisory Board 52 16 Segment contribution to Group revenue 2013 29 12 Forecasts for the long-term development of global air traffic 52 17 Segment contribution to Group EBITDA 2013 40 13 Remuneration of the Executive Board 2013 53 18 Capital expenditure by segments 41 14 Remuneration of the Executive Board 2013 54 19 Summary of the statement of cash flows and reconciliation 41 15 Remuneration of the Executive Board 2012 to the Group liquidity 41 16 Remuneration of the Executive Board 2012 55 20 Structure of the consolidated financial position as at December 31 42 17 Pension obligations to currently active members 57 21 Allocation of industrial assets of the Executive Board 57 22 Rating structure of assets 43 18 Remuneration of the Supervisory Board 2013 58 23 Repayment profile as at December 31, 2013 44 19 Gross domestic product (GDP)/world trade 58 24 Maturity profile of the floating financial debt and derivatives 45 20 Passenger and cargo development by region 59 25 Group value added before taxes and ROFRA 47 21 Airports with a Fraport share of at least 50 % 60 26 Global satisfaction at Frankfurt Airport 47 22 Minority-owned airports or airports under management contracts 60 27 Punctuality rate at Frankfurt Airport 52 23 Development of the key Group companies 60 28 Baggage connectivity at Frankfurt Airport 53 24 Multi-year overview of capital expenditure 61 29 Equipment availability rate at Frankfurt Airport 54 25 Reconciliation to the cash and cash equivalents 61 30 Employee satisfaction as at the consolidated statement of financial position 61 31 Total number of work accidents 56 26 Financial debt structure 62 32 Employees and percentage of women as at December 31 57 27 Asset structure of Fraport AG 64 33 Development of the Fraport share compared to the market 59 28 Development of the value added 2013 and European competitors 62 29 Average number of employees 65 34 Development of the Fraport share compared to the market 62 30 Average number of employees per segment and European competitors as a multi-year overview 64 31 Development of the share 2013 66 35 Shareholder structure as at December 31, 2013 65 32 Fraport share key figures and data 66 36 Allocation of free float 86 33 Reconciliation – Group 66 37 Dividend per share and dividend yield 86 34 Reconciliation – Aviation 68 38 Risk managment system 86 35 Reconciliation – Retail & Real Estate 70 39 Reporting matrix 87 36 Reconciliation – Ground Handling 87 37 Reconciliation – External Activities & Services 87 38 Reconciliation – Asset and financial position 89 39 Aggregation of key figures of the business outlook

Consolidated Financial Statements Page Table 92 40 Consolidated Income Statement 93 41 Consolidated Statement of Comprehensive Income 94 42 Consolidated Statement of Financial Position as at December 31, 2013 95 43 Consolidated Statement of Cash Flows 96 44 Consolidated Statement of Changes in Equity 98 45 Consolidated Statement of Changes in Non-current Assets 100 46 Segment Reporting 101 47 Geographical information Page Notes Group Fraport AnnualReport2013 146 145 144 144 143 142 142 141 141 140 140 140 138 137 137 137 136 136 135 135 134 134 133 132 132 131 130 130 129 129 129 128 128 127 127 126 125 125 125 124 124 124 123 122 122 121 121 121 121 120 115 109 105 104 103 Table 102 101 100 99 98 97 96 95 94 93 92 91 90 89 88 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 Non-current andcurrentincometaxprovisions Sensitivity analysisasatDecember31,2013 Significant actuarialassumptions Pension obligations(2012) Pension obligations(2013) Offsetting Deferred taxliabilities Maturity ofleasepayments Non-current andcurrentotherliabilities Trade accountspayable Non-current andcurrentfinancialliabilities Non-controlling interests to Section160oftheAktG sharesaccording Development ofthefloatingandtreasury Equity attributabletoshareholdersofFraportAG Cash andcashequivalents Allowances Default riskanalysis Trade accountsreceivable Inventories Deferred taxassets Income taxreceivables Non-current andcurrentotherreceivablesfinancialassets Other financialassets Financial informationregardingassociatedcompanies Investments inassociatedcompanies Investment property Finance leasecontracts(2012) Finance leasecontracts(2013) Property, plantandequipment Other intangibleassets Investments inairportoperatingprojects Goodwill Earnings pershare Tax reconciliation Allocation ofdeferredtaxes Taxes onincome Other financialresult Result fromassociatedcompanies at fairvaluedirectlyrecognizedinequity Interest fromfinancialinstrumentsmeasured Interest incomeandinterestexpenses Group auditorfees Other operatingexpenses Depreciation andamortization Personnel expensesandaveragenumberofemployees Cost ofmaterials Other operatingincome Other internalworkcapitalized Change inwork-in-process Minimum leasepayments Revenue Effects oftheretrospectiveapplicationIAS19R Regular depreciationandamortization Exchange rates Joint ventures Companies includedinconsolidation Page Notes Group 196 191 190 190 188 184 184 183 181 181 180 180 180 170 170 169 169 169 167 166 166 165 165 164 164 163 162 161 160 160 159 159 157 157 156 155 153 153 152 152 151 151 150 149 148 147 146 Table 149 148 147 146 145 144 143 142 141 140 139 138 137 136 135 134 133 132 131 130 129 128 127 126 125 124 123 122 121 120 119 118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 Seven-Year-Overview Other investments Associated companies Joint ventures Subsidiaries Board Mandates oftheSupervisory Mandates oftheExecutiveBoard Board2013 Remuneration oftheSupervisory of theExecutiveBoard Pension obligationstocurrentlyactivemembers Remuneration oftheExecutiveBoard2012 Remuneration oftheExecutiveBoard2012 Remuneration oftheExecutiveBoard2013 Remuneration oftheExecutiveBoard2013 Remuneration ofmanagement Relationships withrelatedpartiesandtheStateofHesse Financial debtratios Components ofthecontrolindicators Interest sensitivity Currency ratesensitivity Liquidity profileasatDecember31,2012 Liquidity profileasatDecember31,2013 Issuer ratingsliquidfunds(2012) Issuer ratingsliquidfunds(2013) Issuer ratingsofsecurities(2012) Issuer ratingsofsecurities(2013) Classification ofsecurities Measurement parameters(LTIP) Development ofvirtualsharesissued Volatilities andcorrelations Fair valueoftheMSOPtranches Conditions oftheMSOPtranches Development ofthesubscriptionrightsissued Operate leases Order commitments Guarantees andothercommitments as attheconsolidatedstatementoffinancialposition Reconciliation tothecashandequivalents Currency forwards Interest rateswaps(hedgeaccounting) Fair valuesofderivativefinancialinstruments Derivative financialinstruments Net resultsofthemeasurementcategories Measurement categoriesaccordingtoIFRS7.27A(2012) Measurement categoriesaccordingtoIFRS7.27A(2013) Financial instrumentsasatDecember31,2012 Financial instrumentsasatDecember31,2013 Other provisions Non-current andcurrentpersonnel-relatedprovisions Further Information/ListofGraphicsandTables 199

FurtherFurther Information 200 Fraport Annual Report 2013

Glossary

Capital employed Gearing ratio Net financial debt + shareholders’ equity 1) Net financial debt/shareholders’ equity1)

Debt-to-equity ratio Liquidity Net financial debt/total assets Cash and cash equivalents (as at financial position) + short-term realizable items in “other financial assets” and “other receivables Dividend yield and financial assets” Dividend per share/year-end closing price of the share Market capitalization Dynamic debt ratio Year-end closing price of the Fraport share × number of shares Net financial debt/cash flow from operating activities Net financial debt EBIT Non-current financial liabilities + current financial liabilities – liquidity Abbreviation for: earnings before interest and taxes Personnel expense per employee EBIT margin Personnel expense/average number of employees EBIT/revenue Price-earnings ratio EBITDA Year-end closing price of the Fraport share/earnings per share (basic) Abbreviation for: earnings before interest, taxes, depreciation and amortization Return on revenue EBT/revenue EBITDA margin EBITDA/revenue Return on shareholders’ equity Profit attributable to shareholders of Fraport AG/shareholders’ equity1) EBT Abbreviation for: earnings before taxes ROCE Abbreviation for: return on capital employed = EBIT/capital employed EURIBOR Abbreviation for: European Interbank Offered Rate = Interest rate ROFRA used by European banks, when trading fixed-term deposits with Abbreviation for: return on Fraport assets = EBIT/Fraport assets each other. It is one of the most important reference interest rates, among European bonds, bearing floating interest payments Shareholders’ equity ratio Shareholders’ equity 1)/total assets Fraport assets Capital required for operations = Goodwill + other intangible Working capital assets at cost/2 + investments in airport operating projects at cost/2 Current assets – trade accounts payable – other current liabilities + property, plant and equipment at cost/2 + inventories + trade accounts receivable – construction in progress at cost/2 – current Yearly performance of the Fraport share trade accounts payable (Year-end closing price of the Fraport share + dividend per share)/ previous year-end closing price Free cash flow Cash flow from operating activities – investments in airport operating projects – capital expenditure for other intangible assets – capital expenditure for property, plant and equipment – investment property

1) Shareholders’ equity less non-controlling interests and profit earmarked for distribution. Financial Calendar 2014

Thursday, May 8, 2014 Monday, June 2, 2014 Thursday, November 6, 2014 Group Interim Report Dividend payment Group Interim Report January 1 to March 31, 2014 January 1 to September 30, 2014 Online publication, conference call Thursday, August 7, 2014 Online publication, press conference and with analysts and investors Group Interim Report conference call with analysts and investors January 1 to June 30, 2014 Friday, May 30, 2014 Online publication, conference call Annual General Meeting 2014 with analysts and investors Frankfurt am Main, Jahrhunderthalle

Traffic Calendar 2014 (Online publication)

Thursday, April 10, 2014 Tuesday, August 12, 2014 Wednesday, December 10, 2014 March 2014/3M 2014 July 2014 November 2014

Tuesday, May 13, 2014 Wednesday, September 10, 2014 Thursday, January 15, 2015 April 2014 August 2014 December 2014/FY 2014

Thursday, June 12, 2014 Monday, October 13, 2014 May 2014 September 2014/9M 2014

Thursday, July 10, 2014 Wednesday, November 12, 2014 June 2014/6M 2014 October 2014

Imprint

Publisher Contact Investor Relations Printing Fraport AG Stefan J. Rüter Eberl Print GmbH, Immenstadt i. Allgäu Frankfurt Airport Services Worldwide Head of Finance and Investor Relations 60547 Frankfurt am Main Telephone: + 49 69 690-74840 Publication Date Germany Fax: + 49 69 690-74843 March 27, 2014 Telephone: +49 (0) 1806 3724636 1) Website: www.meet-ir.com Website: www.fraport.com E-mail: [email protected] Editorial Deadline March 4, 2014

1) 20 Cents (€) per call within German landline network; Concept und Design mobile phone rates may vary, maximum 60 Cents (€) within Germany. heureka GmbH, Essen Disclaimer In case of any uncertainties which arise due to Photography errors in translation, the German version of the Michael Gernhuber, Essen Annual Report is the binding one.