Flughafen Wien : Group Management Report, Consolidated Financial Statements and Management Report and Annual Financial Statements 2023

Annual Financial Report 2023

Flughafen Wien AG

Contents
Contents
Key Data of the Flughafen Wien Group	5
Group Management Report for the 2023 Financial Year	7
The Flughafen Wien Group	8
Strategy 2030	10
Business environment	14
Traffic development	16
Fee and incentive policy at Vienna Airport	23
Malta Airport fees	24
Revenue development	25
Segment developments	26
Earnings at a glance	30
Financial, asset and capital structure	34
Cash flow statement	37
Capital expenditure	38
Investments in foreign airports	39
Financial instruments	40
Financial and capital management	41
Risks of future development	42
Report on the key features of the internal control system for accounting processes	49
Research, development and innovation management	51
Non-financial statement required by section 267a UGB	54
Disclosures required by section 243a of the Austrian Commercial Code	79
Supplementary report	81
Outlook	83
Consolidated Financial Statements 2023 of Flughafen Wien AG	84
Consolidated Income Statement	85
Consolidated Statement of Comprehensive Income	86
Consolidated Balance Sheet	87
Consolidated Cash Flow Statement	88
Consolidated Statement of Changes in Equity	89

2

Contents

Notes to the Consolidated Financial Statements for the Financial Year 2023	90
I The Company	91
II Accounting principles	92
III Functional presentation currency	93
IV Judgements and estimate uncertainty	94
V Notes to the Consolidated Income Statement	97
VI Notes to the Consolidated Statement of Financial Position	113
VII Consolidated cash flow statement	132
VIII Financial instruments and risk management	133
IX Other disclosures	147
X Accounting policies	154
Group companies of Flughafen Wien AG	168
Investments of Flughafen Wien AG	170
Material non-controlling interests	186
Statement of the members of the Management Board	189
Management Report for the 2023 Financial Year	195
Flughafen Wien AG	196
Strategy 2030	197
Business environment	201
Traffic development at Vienna Airport	203
Fee and incentive policy at Vienna Airport	208
Revenue development	209
Earnings	210
Financial, asset and capital structure	212
Capital expenditure	215
Financial instruments	216
Financial and capital management	217
Risks of future development	218
Report on the key features of the internal control system for accounting processes	225
Research, development and innovation management	227
Non-financial declaration required by section 243b of the Austrian Commercial Code	230
Disclosures required by section 243a of the Austrian Commercial Code	243
Supplementary report	245
Outlook	246
3

Contents
Annual Financial Statements 2023 of Flughafen Wien AG	247
Balance Sheet Flughafen Wien AG	248
Income statement of Flughafen Wien AG	249
Notes to the 2023 financial statements of Flughafen Wien AG	251
General notes and accounting policies	252
Accounting and valuation methods	254
Notes to the balance sheet	257
Notes to the income statement	262
Other disclosures	265
Appendices to the Notes	269
Statement of the members of the Management Board	276
Glossary	282
Imprint	284

4

Key Data of the Flughafen Wien Group

Key Data of the Flughafen Wien Group

Financial Indicators

(in € million, excluding employees)
			Change						¹
Total revenue		.	. %		.		.		.
Thereof Airport		.	. %		.		.		.
Thereof Handling & Security Services		.	. %		.		.		.
Thereof Retail & Properties		.	. %		.		.		.
Thereof Malta		.	. %		.		.		.
Thereof Other Segments		.	. %		.		.		.
EBITDA		.	. %		.		.		.
EBITDA margin (in %) 2		.	n.a.		.		.		.
EBIT		.	. %		.		.		- .
EBIT margin (in %) 3		.	n.a.		.		.		- .
ROCE (in %) 4		.	n.a.		.		.		- .
ROCE after tax (in %) 5		.	n.a.		.		.		- .
Net profit		.	. %		.		.		- .
Net profit parent company		.	. %		.		.		- .
Cash flow from operating activities		.	. %		.		.		- .
Capital expenditure 6		.	. %		.		.		.
Income taxes		.	. %		.		.		- .
Headcount (Flughafen Wien Group) 7		,	. %		,		,		,
Annual average employees (FTE)
(Flughafen Wien Group) 8		,	. %		,		,		,
.		.	Change	. .	. .		. .
Equity	,	.	. %	,	.	,	.	,	.
Equity ratio (in %)		.	n.a.		.		.		.
Net liquidity (previous year: net debt)		.	. %		.	-	.	-	.
Total assets	,	.	- . %	,	.	,	.	,	.
Gearing (in %)9		- .	n.a.		- .		.		.

1. adjusted
2. EBITDA margin (earnings before interest, taxes, depreciation and amortisation) = EBITDA/revenue
3. EBIT margin (earnings before interest and taxes) = EBIT/revenue
4. ROCE before tax (return on capital employed before tax) = EBIT/average capital employed
5. ROCE after tax (return on capital employed after tax) = EBIT less allocated taxes/average capital employed
6. Capital expenditure: intangible assets, property, plant and equipment and investment property including corrections to invoices from previous years, excluding financial assets
7. Headcount: number of all employment relationships of the Flughafen Wien Group in the relevant year with no weighting for level of employment
8. Annual average number of full-time equivalents (FTEs) weighted by level of employment including apprentices, exclud- ing employees on unpaid leave (parental leave, military service, etc.), excluding board members and managing directors
9. Gearing is negative due to the presence of net liquidity

5

Key Data of the Flughafen Wien Group

Industry Indicators

		Change
Passenger development of the Group
Vienna Airport (in mill.)	.	. %	.	.	.
Malta Airport (in mill.)	.	. %	.	.	.
Košice Airport (in mill.)	.	. %	.	.	.
Vienna Airport and strategic
investments (VIE, MLA, KSC)	.	. %	.	.	.
Traffic development Vienna Airport
Passengers (in mill.)	.	. %	.	.	.
Thereof transfer passengers
(in mill.)	.	. %	.	.	.
Aircraft movements	,	. %	,	,	,
MTOW (in mill. tonnes) 1	.	. %	.	.	.
Cargo (air cargo and trucking;
in tonnes)	,	- . %	,	,	,
Seat load factor 2	.	. %	.	.	.

• Stock Market Indicators

			Change
Shares outstanding		.	. %		.		.		.
P/E ratio (as of 31.12.)		.	n.a.		.		.		- .
Earnings per share (in €)		.	. %		.		.		- .
Dividend per share (in €) 3		.	. %		.		.		.
Dividend yield (as of 31.12.; in %)		.	n.a.		.		.		.
Pay-out ratio (as a % of net profit)		.	n.a.		.		.		.
Market capitalisation (as of 31.12.;
in € million)	,	.	. %	,	.	,	.	,	.
Stock price: high (in €)		.	. %		.		.		.
Stock price: low (in €)		.	. %		.		.		.
Stock price: as of 31.12. (in €)		.	. %		.		.		.
Market weighting ATX Prime
(as of 31.12.; in %)		.	n.a.		.		.		.

• Ticker symbols

Reuters		VIEV.VI
Bloomberg		FLU AV
Nasdaq		FLU-AT
ISIN	AT	VIE
Kassamarkt		FLU
ADR		VIAAY

1. MTOW: maximum take-off weight for aircraft
2. Seat load factor: number of passengers/available number of seats
3. Reporting year: proposal to the Annual General Meeting

6

Flughafen Wien Aktiengesellschaft

Group Management Report for the 2023 Financial Year

The Flughafen Wien Group

The Flughafen Wien Group

Business model

The Flughafen Wien Group (FWAG Group) comprises the three international airports in Vienna, Malta and Košice (Slovakia, recorded at equity) as well as the Bad Vöslau airfield in Austria. The three international airports of Vienna, Malta and Košice recorded a total of 38.0 million passengers in 2023 (2022: 30.1 million passengers). In the record year of 2019 before the outbreak of Covid-19 pandemic, 31.7 passengers passed through Vienna Airport (2023: 29.5 million). Measured by passenger numbers, Vienna thus occupied 17th place among European airports.

The focus of the connections served from Vienna is routes within Europe (approximately 85% of the total number of passengers). Vienna Airport functions here as an important hub for destinations in Central and Eastern Europe. Attractive long-haul connections round off the profile. Vienna Airport benefits in particular from its large catchment area, which, in addition to Austria, also includes part of the Czech Republic, Slovakia and Hungary. Alongside Frankfurt, Munich, Berlin, Düsseldorf and Zurich, Vienna Airport is one of six Lufthansa hubs. The home carrier, Austrian Airlines, last year achieved a market share of approximately 47%, that of the Lufthansa Group as a whole is slightly above 51%. Various low-cost carriers have generated significant growth in the last few years, increasing their share most recently to almost 30% of total passenger numbers. Vienna Airport is one of the largest employers in Eastern Austria. Together with the fully consolidated subsidiaries, the FWAG Group employed an annual average of 5,074 staff (FTE, full-time equivalents) or 7,131 people (headcount).

As the general operator, Vienna Airport provides the entire range of services for the airport operations. These include the flight operations, ground handling services, security services and the commercial activities of the property management at the site.

The operating segments of the FWAG Group include the FWAG business units and the individual subsidiaries and investments in companies recorded at equity. These operating segments are aggregated into the following reporting segments: Airport, Handling & Security Services, Retail & Properties, Malta and Other Segments.

The five segments of the Group's operating activities

Airport

The Airport segment is responsible for the operation and maintenance of all movement areas of the terminal, all the facilities involved in passenger and baggage handling as well as the security controls for passengers and hand luggage at Vienna Airport (performance of the Handling & Security Services seg- ment). The tasks of acquiring new airline customers and increasing the number of destinations offered are also assigned to this segment.

Handling & Security Services

Services for aircraft and passenger handling of scheduled, charter and general aviation traffic are bundled in the Handling & Security Services segment. In addition to passenger, cargo and ramp handling, these also include the provision of security services, checks of passengers and hand luggage and general avia- tion. The performance of the handling and security services by the Group's own companies at Vienna Airport guarantees short turnarounds, a high level of punctuality and offers that are tailor-made for our customers.

8

The Flughafen Wien Group

Retail & Properties

Retail & Properties provides important services related to the airport operations and is responsible for developing and marketing the Group's own properties. Substantial contributions to income come from centre management and hospitality, including shops, restaurants and passenger services (lounges, VIP), and from parking, advertising revenue and the rental of office and cargo space.

Malta

The Malta segment includes Malta Airport (Malta International Airport plc, MIA) and the investments it holds directly (the MIA Group), which together operate Malta Airport. Revenue is generated from aviation services, parking and the rental of retail and office space.

Other Segments

This segment comprises a wide range of services that are provided both for other operating segments of the Flughafen Wien Group and for external customers as well as for the subsidiaries that hold shares in foreign associates and joint ventures (e.g. at Košice Airport) but that do not otherwise perform any operating activities. It primarily covers tasks such as performing technical services and repairs, services in the area of energy supply and waste disposal, telecommunications and information technology, electromechanical and building services, the construction and maintenance of infrastructure as well as construction management and consulting services.

Note: Rounding differences can occur when adding rounded amounts and percentages due to the use of computer-aided tools. This also applies to other information such as headcount, traffic data etc.

9

Strategy 2030

Strategy 2030

Our vision: "As the best hub between East and West, we are one of Europe's leading airports. We meet the requirements of our customers professionally and through our particular focus on service". In implementing this vision, we are committed to our five values:

• Efficiency
• Customer focus
• Respect
• Professionalism
• Sustainability

To this end, five strategic approaches have been derived for achieving the primary goal of a "sustainable increase in the value of the company". These are:

Strategy process

The roll-out of the new strategy at the end of 2023 was preceded by a strategy process that lasted around two years. Alongside Supervisory Board and management team meetings, the employees of Vienna Airport were also in particular involved in the process. More than 4,000 ideas were submitted from all parts of the company during around 70 strategy workshops: from strategic considerations on the further development of our Group strategy to specific proposals on actions to optimise the way we work.

10