"Perspectives 2011" - Sustainability and Annual Report (pdf)
"Perspectives 2011" - Sustainability and Annual Report (pdf)
"Perspectives 2011" - Sustainability and Annual Report (pdf)
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Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility<strong>Perspectives</strong>. We are an airport operator. We run a major pieceof aviation infrastructure – part of an international, interconnectedtransport network that sustains global mobility <strong>and</strong> unites peopleacross national boundaries. We are also a responsible corporatecitizen who seeks an open, fair <strong>and</strong> balanced dialogue with stake -holders <strong>and</strong> interest groups <strong>and</strong> for whom the long-term protectionof the environment, climate <strong>and</strong> natural resources is paramount.As such, we pursue a forward-looking business strategyintended to strike a successful balance between business, environmental<strong>and</strong> social objectives. We provide our dedicated workforcewith the training <strong>and</strong> continuing education they need to betheir best; we offer attractive, long-term employment; <strong>and</strong> wedeliver valuable economic <strong>and</strong> labor-market stimulus with a reachfar beyond the bounds of our airport. Our goal: to create value –for our customers, employees, owners <strong>and</strong> host region.
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility<strong>Perspectives</strong> 2011Motivation Markets MessageEconomyOur goal is to sharpen our customerfocus <strong>and</strong> enhance theappeal of the products <strong>and</strong>services we offer air travelers<strong>and</strong> visitors.EnvironmentWe work to conserve resources<strong>and</strong> reduce ourenvironmental impacts outof respect for the environment<strong>and</strong> future generations.Social equityWe believe in supporting <strong>and</strong>empowering our employees,creating value for our customers,<strong>and</strong> partnering with ourregion to promote growth.This report focuses on people as the core motivator driving our organization.2
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentContentsIntroductionCompany profile <strong>and</strong>strategy4 Executive board5 CEO’s letter6 Management team8 Key events26 Company profile31 Company strategy36 Expansion of Munich Airport42 L<strong>and</strong>side access master planService portfolioCommunication <strong>and</strong> socialresponsibilityWorkforce <strong>and</strong> workenvironment46 Aviation business51 Non-aviation business55 Quality, security <strong>and</strong> safety66 Stakeholder dialogue69 Regional growth partnerships72 Economic value76 Community engagement80 Human resources strategy82 Training <strong>and</strong> HR development86 Diversity87 Work-life balance <strong>and</strong>health protection90 Remuneration <strong>and</strong>codeterminationEnvironmental <strong>and</strong> climateprotectionFinancial reviewSustainable development94 Climate strategy102 Resource stewardship105 Noise control108 Biodiversity112 Supervisory board’s report113 Consolidated managementreport128 Consolidated financialstatements147 Independent auditor’s report150 <strong>Sustainability</strong> program156 <strong>Sustainability</strong> figures170 <strong>Report</strong> profile172 GRI index181 GlossaryGlossary entry Internet link Page reference3
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Executive boardq CEO’s letterp Management teamp Key eventsThomas WeyerVice President <strong>and</strong> Chief Financial OfficerChief Infrastructure OfficerDr. Michael KerklohPresident <strong>and</strong> Chief Executive OfficerPersonnel Industrial Relations Director4
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentIn many respects, 2011 was a milestone year in Munich Airport’s development. We logged around 38 millionpassenger movements – more than in any year previously in our history. Up 9 percent compared to2010, the passenger volume grew faster here, at Bavaria’s gateway to the world, than at any other airportin Germany, elevating us to number six in the league table of Europe’s busiest commercial airports, ourhighest position ever. In the global rankings, we were also on the ascent, rising three places, to 27th. Andin the cargo sector, we recorded a new all-time high of 286,000 metric tons in the volume of goods transshipped.These figures, combined with solid efficiency gains, led to record earnings in 2011. The Group as a wholegenerated sales of €1.15 billion (6.4 percent more than in 2010), <strong>and</strong> our consolidated net income grew17.6 percent, to €193.3 million.At the start of the year, AeroGround, a newly formed Flughafen München GmbH subsidiary, took over ourground h<strong>and</strong>ling operations. AeroGround rapidly established itself in the marketplace, winning a shareof 70 percent, <strong>and</strong> with a new <strong>and</strong> competitive lineup delivered our first positive earnings in the groundh<strong>and</strong>ling sector in many years.A key event – arguably the most important since we relocated from Munich’s old airport, Riem, to ourcurrent site, <strong>and</strong> one that will shape our direction as a center of aviation – occurred in the summer of 2011:On July 26, the regional government of Upper Bavaria granted zoning approval for our third runway. Withthis l<strong>and</strong>mark decision, the government’s zoning authority expressly endorsed the needs assessment <strong>and</strong>plans for the third runway submitted by Flughafen München GmbH. Since then, voting in a municipal referendumin Munich has gone against the third runway, but the zoning approval is still under judicial review.If the courts find in our favor, this will grant us a long-term right to build the runway – something clearly ofenormous strategic value for us.The Group scored another important success in 2011, this time on the road to carbon-neutral growth.Although around 38 million passengers used the airport’s infrastructure during the course of the year, thecarbon emissions that we as an organization can influence directly – from our plants, installations, buildings<strong>and</strong> vehicles – were again significantly lower, for the third year in succession. The most recent reductionin CO 2 , by almost 9,600 tons compared to a year earlier, proves that our efforts in this area really arepaying off <strong>and</strong> that we’re an important step closer to our broader overall objective of carbon-neutral growthby 2020.To underscore our strategic commitment to operating sustainably, we broke new ground in corporatereporting in 2011 by releasing our first combined sustainability <strong>and</strong> annual report, covering the 2010 fiscalyear. Our 2011 report takes the same approach, combining financial <strong>and</strong> business data with coverage ofour economic, environmental <strong>and</strong> social initiatives, progress on sustainability targets, <strong>and</strong> key performanceindicators.Dr. Michael KerklohPresident <strong>and</strong> Chief Executive OfficerFlughafen München GmbH5
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Executive boardP CEO’s letterq Management teamp Key eventsManagement teamRainer BeeckDirectorSenior Vice PresidentConsumer ActivitiesMichael RothSenior Vice PresidentCorporate ServicesJosef-Heinz LoichingerDirectorSenior Vice PresidentFinance <strong>and</strong> ControllingDr. Josef SchwendnerDirectorSenior Vice PresidentLegal Affairs <strong>and</strong>ComplianceSiegfried PaslerChief Executive OfficerAeroGround FlughafenMünchen GmbHDr. Robert ScharpfDirectorSenior Vice PresidentHuman Resources6
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentAndreas von PuttkamerDirectorSenior Vice PresidentAviationHans-Joachim BuesSenior Vice PresidentCorporateCommunicationsGerhard WirthSenior Vice PresidentSecurityJohann BernhardDirectorSenior Vice PresidentEngineering <strong>and</strong>FacilitiesGertrud SeidenspinnerSenior Vice PresidentCorporate Development<strong>and</strong> EnvironmentMichael ZaddachSenior Vice PresidentInformation TechnologyCarsten WilmsenSenior Vice PresidentCorporate Real EstateManagement <strong>and</strong>DevelopmentSenior Vice PresidentPlanning <strong>and</strong>Construction7
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Executive boardP CEO’s letterP Management teamq Key eventsKey eventsJanuary 2011AeroGround, a wholly ownedFlug hafen München GmbH (FMG)subsidiary, begins operating atMunich Airport, relaunching FMG’sground h<strong>and</strong>ling activities in amore competitive, restructuredform. AeroGround is the airport’slargest ground services provider,employing around 2,000 people,<strong>and</strong> has contracts with more than100 domestic <strong>and</strong> internationalcarriers.March 2011Munich Airport’s initiatives toreduce carbon emissions are certifiedto Level 3 (“Optimization”)under the Airport Carbon Accreditationprogram run by ACI Europe,the umbrella organization forEuropean airports. Level 3 accreditationis awarded to those airportsthat not only take effective <strong>and</strong>March 27, 2011During the summer timetableseason, airlines operate servicesto more than 220 destinationsworldwide, including 49 on longhaulroutes, in a total of 68 countries.Lufthansa begins flying dailyto Mumbai, São Paulo, Singapore<strong>and</strong> Seoul/Busan; Qatar Airwayssteps up the frequency of its Dohaservice from seven flights a weekto eleven; <strong>and</strong> Yakuta Airlines addsa new long-distance destination –Irkutsk, near Lake Baikal – to theairport timetable.February 2011Readers of the magazine Traveller’sWorld rank Munich as thefourth-best in a comparison of theworld’s airports. Only Bangkok,Singapore <strong>and</strong> Hong Kong ratehigher. Munich is commended forits fast check-in operations <strong>and</strong>short waits.lasting steps to reduce emissionsbut also seek to promote similarefforts by other organizations oncampus. Munich is the first airportin Germany to be Level 3-certifiedunder the ACI’s accreditationprogram.April 4, 2011FMG publishes the outcome ofa representative poll carried outon its behalf in the airport’s sur -rounding region by the organizationTNS infratest. The poll shows that84 per cent of people in neighboringcommunities regard the presenceof the airport either as positive orhighly positive. Close to 80 percentof respondents also stated thatthey had benefited personally fromthe airport’s presence.8
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentMay 23, 2011In the 2011 World Airport Awards,Munich is chosen as the best air -port in Europe, having alreadywon the title annually from 2005to 2008 <strong>and</strong> again in 2010. Munichalso comes fourth overall in theglobal rankings, just as in 2010,<strong>and</strong> picks up an additional award inthe special category Best Airportfor Leisure Amenities, rankingsecond, world wide. The Kempinski<strong>and</strong> FMG supervisory board chairmanGeorg Fahrenschon, FMGpresident <strong>and</strong> CEO Dr. MichaelKerkloh, CFO Thomas Weyer, <strong>and</strong>supervisory board member DieterReiter, who heads the city of Munich’sDepartment of Labor <strong>and</strong>Economic Development.June 21, 2011VIP WING, a new 1,200-squaremeterVIP lounge area, opens inthe south wing of Munich Airport’sTerminal 1. Uniting internationalflair with local Bavarian charm,VIP WING has a wide range offacilities, including suites, conferencerooms, work spaces, quietareas, showers, <strong>and</strong> an interfaithprayer room. The new loungeHotel Airport München is selectedas the second-best hotel in Europe.The awards are based on votescast by more than 11 million passengersaround the world in themost recent survey conducted bySkytrax, an independent aviationresearch organization headquarteredin London. Seen here celebratingthe awards, from left toright, are Bavarian finance ministerJune 6, 2011Thanks to new information counters,visitors can find their wayaround Munich Airport quicker <strong>and</strong>more easily. Known as InfoGates,the counters are part of a proprietarysystem developed in-houseat Flughafen München GmbH thatenables users to contact informationservice staff at the push ofa button to ask questions <strong>and</strong> gethelp finding their way. The systemalso calculates the distances tobe covered, the estimated timeson foot, <strong>and</strong> the potential waitsat passport control <strong>and</strong> securityscreening.area is open to paying customers,regardless of the carrier they areflying with or their grade of ticket.The VIP service package includesbaggage h<strong>and</strong>ling <strong>and</strong> customsclearance, passport checks, <strong>and</strong>transfers by limousine between theVIP lounge <strong>and</strong> planes.9
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Executive boardP CEO’s letterP Management teamq Key eventsJuly 8–10, 2011FMG holds its first sustainabilityfair at Munich Airport. Bannered“Working today for tomorrow”<strong>and</strong> hosted in the München AirportCenter, the event spotlights keyinitiatives aimed at promoting<strong>and</strong> advancing sustainable airportoperations. Besides various unitsin the FMG Group, exhibitors alsoinclude Deutsche Lufthansa AG<strong>and</strong> aircraft engine maker MTU.October 21, 2011During the 2011/2012 wintertimetable season, airlines offerservices to more than 200 destinationsin 68 countries. For a weekin December, Deutsche Lufthansaflies an Airbus A380 once a dayto New York, <strong>and</strong> for the first timeJuly 26, 2011Upper Bavaria’s regional governmentissues the zoning approvalauthorizing Munich Airport to builda third runway. The government’sdecision follows a detailed <strong>and</strong>comprehensive review of all thefactors involved <strong>and</strong> endorsesthe needs assessment <strong>and</strong> plansfor the third runway submitted byFMG.August 18, 2011In the München Airport Center,Munich Airport <strong>and</strong> Deutsche Lufthansapresent the first – <strong>and</strong> largest– stationary wave surf machineever to be installed at an airport.Through to the end of August, beginners<strong>and</strong> professionals alike cancome to the airport <strong>and</strong> surf forfree. The high point of the event isthe first European Championshipin Stationary Wave Riding, held onAugust 20–21.during a winter season, operatesdaily services connectingMunich with Hong Kong, Mumbai,Singapore, Boston <strong>and</strong> São Paulo.Lufthansa also ex tends its Singaporeroute with an onward leg toJakarta, the capital of Indonesia,<strong>and</strong> its Riyadh route with a secondSaudi city, Jeddah.10
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentNovember 25, 2011Emirates begins operating anAirbus A380, the world’s largestpassenger jet, on one of its twodaily services from Munich toDubai. Emirates is the first foreigncarrier to fly an A380 to <strong>and</strong> fromGermany on a regular basis.January 26, 2012A European Commission delegationheaded by László Andor, theEU Commissioner for Employment,Social Affairs <strong>and</strong> Integration,comes to Munich Airport ona fact-finding trip to learn aboutFMG’s plans <strong>and</strong> initiatives in thearea of corporate social responsibility.The trip con cludes with aJanuary 31, 2012The Airports Council InternationalEurope reaffirms the Level 3 cer -tification originally awarded toMunich Airport in March 2011 asthe first airport in Germany underthe ACI’s Airport Carbon Accreditationprogram.December 16, 2011FMG’s supervisory board electsDr. Markus Söder, Bavaria’s Ministerof State for Finance, as its newchairman. Söder succeeds GeorgFahrenschon who, as Bavaria’sprevious finance minister, hadchaired the supervisory boardfrom December 2008.brief visit to the company’s childdaycare center, “Airport Hopser,”which is currently the only one ofits kind at a commercial airport inGermany. Seen here among theinfants, from left to right, are theEU Commissioner, airport CEO Dr.Michael Kerkloh, <strong>and</strong> Bavarian laborminister Christine Haderthauer.March 25, 2012For the summer timetable seasonthrough to October 27, carriersare operating regular servicesto 158 continental, 40 long-haul<strong>and</strong> 18 domestic destinations.Deutsche Lufthansa starts servingnew routes to Bastia (Corsica), thechannel isl<strong>and</strong> Jersey, Montpelierin the south of France, Odessa onthe Black Sea, <strong>and</strong> Pula in Istria,<strong>and</strong> Star Alliance partner Air Chinabegins offering a daily service toBeijing.11
Economy€1.15 billionin group sales8.8%rise in passengertraffic, year on year202 retail, service<strong>and</strong> hospitality outletsMunich Airport has more than 37,000 square meters of smart retail <strong>and</strong> dining spacedesigned to meet the tastes of air travelers <strong>and</strong> visitors.
EconomyCargo volumeup 5.9%to more than303,000tons37% 40%2010 2011Transfer volume on the rise241destinationsserved fromMUCFifty-seven percent of our passenger base are leisure travelers,the remaining 43 percent are business travelers.
EnvironmentYear-on-year carbonreduction of almost9,600 tons1,774employeestrained in environmental<strong>and</strong> climate protection90% of FMG subsidiaryAllresto’s food purchases are sourcedlocally in BavariaFMG subsidiary Allresto operates numerous bars, cafés <strong>and</strong> eateries at Munich Airport.Its Il Mondo restaurant combines fine Italian cuisine with a comm<strong>and</strong>ing view of the apron.
Environment60%65%of aircraft deiceris recycledof the airport’sareais unpaved700 hectaresof additional green spacesurround the airportFMG staff regularly inspect our compensatory mitigation sites around the airport. Thishelps us keep up with maintenance <strong>and</strong> monitor our growth targets for biotopes <strong>and</strong>conservation sites.
Social equityAround 550organizationsoperate at theairport€100 millionspent on goods <strong>and</strong>services by FMG inthe airport’s regionAlmost 29,600people employed onthe airport campusFMG’s apron controllers are just some of the almost 8,000 people who work to ensure thatthe airport keeps operating smoothly <strong>and</strong> safely.
Social equityPeople fromaround 50nations workat the airport16.8hours of training,on average, pergroup employeeFMG sponsorsroughly 500local communityprojects <strong>and</strong> initiatives“Airport Hopser,” our child daycare center <strong>and</strong> the only one of its kind at a commercial airportin Germany, looks after children up to the age of three.
IntroductionCompany profile <strong>and</strong> strategyService portfolioCommunication <strong>and</strong> social responsibilityp Company profilep Company strategyp Expansion of Munich Airportp L<strong>and</strong>side access master planProjection for 2025p58.2millionpassengers410,000Our goal: “By 2015 wewill be one of the mostattractive, efficient <strong>and</strong>sustainable hub airportsin the world.”QAircraft movementsin 201124
Workforce <strong>and</strong> work environment Environmental <strong>and</strong> climate protection Financial reviewSustainable developmentCompany profile <strong>and</strong> strategy26 Company profile31 Company strategy36 Expansion of Munich Airport42 L<strong>and</strong>side access master plan25
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Company profilep Company strategyp Expansion of Munich Airportp L<strong>and</strong>side access master planCompany profile) www.munich-airport.com/portraitFMG corporate structure <strong>and</strong> overviewMunich Airport is operated by Flughafen MünchenGmbH (FMG), a company headquartered in Munich<strong>and</strong> initially formed in 1949. Since 1973, the companyhas been co-owned by the Free State of Bavaria(51 percent), the Federal Republic of Germany(26 percent), <strong>and</strong> the City of Munich (23 percent).The FMG Group of companies has a workforce ofroughly 7,000 people. With the exception of consultingserv ices provided to other international airports,the Group’s activities are confined to Munich Airport.Structurally, FMG is organized around three types ofdivisions: There are five central divisions, which performoverarching management <strong>and</strong> control tasks, fourbusiness divisions, which operate independently withintheir respective markets, <strong>and</strong> five support divisions,which provide a range of specialized services to theGroup as a whole. A number of changes have beenmade to this structure, effective January 1, 2011.The FMG Group now has two new business divisionsalongside Aviation <strong>and</strong> Corporate Real Estate Management<strong>and</strong> Development: AeroGround (formerly,Ground H<strong>and</strong>ling) <strong>and</strong> Consumer Activities (basedon what was previously Retail <strong>and</strong> Services <strong>and</strong> nowincludes the Center Management subdivision <strong>and</strong> theAdvertising <strong>and</strong> Media/Marketing subdivision). Thefive central divisions are Finance <strong>and</strong> Controlling;Corporate Development <strong>and</strong> Environment; HumanResources; Corporate Communications; <strong>and</strong>, as ofthe start of 2011, Legal Affairs <strong>and</strong> Compliance (for -merly, Legal Affairs <strong>and</strong> Security). There were nochanges among FMG’s support divisions. These compriseCorporate Services; Information Technology;Planning <strong>and</strong> Construction; Engineering <strong>and</strong> Facilities;<strong>and</strong> Security. Following a round of reorganization, theTerminal 2 division no longer exists in its old form.The graphic shows Flughafen München GmbH’s organizationalstructure <strong>and</strong> governing bodies.Supervisory boardShareholders(8 representatives)Labor unions(2 representatives)Executive employees(1 representative)Employees(5 representatives)Shareholders (8 representatives)Employees (8 representatives)Executive boardPresident <strong>and</strong> Chief Executive Officer,Personnel Industrial Relations DirectorVice President <strong>and</strong> Chief Financial Officer,Chief Infrastructure OfficerDivisionsBusiness divisionsSupport divisionsCentral divisionsExecutive support offices- AeroGround- Aviation- Consumer Activities- Corporate Real Estate Management<strong>and</strong> Development- Corporate Services- Information Technology- Planning <strong>and</strong> Construction- Security- Engineering <strong>and</strong> Facilities- Finance <strong>and</strong> Controlling- Corporate Development<strong>and</strong> Environment- Human Resources- Legal Affairs <strong>and</strong> Compliance- Corporate Communications- Corporate InvestmentManagement- International Business- Special Legal Affairs- Assistant to the ExecutiveBoard- Government Affairs- Regional Liaison Officer26
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentAviationOur Aviation division’s primary role is to ensure thesafe <strong>and</strong> orderly h<strong>and</strong>ling of air traffic within thebounds of Munich Airport. Its areas of responsibilityinclude the runway system, apron areas, terminal <strong>and</strong>passenger services, <strong>and</strong> central infrastructure; its remitalso extends to running the airport’s fire service,processing aviation data, preparing traffic forecasts,marketing the airport, developing traffic, managing theairport’s lounge <strong>and</strong> service center operations, <strong>and</strong>conducting international consulting projects.Corporate Real Estate Management <strong>and</strong>DevelopmentOur Corporate Real Estate Management <strong>and</strong> Developmentdivision’s activities essentially comprisedeveloping, marketing <strong>and</strong> managing company-ownedbuildings <strong>and</strong> other facilities in accordance with marketneeds. Besides the airport’s own infrastructure, thereal estate under management by the division includesbuildings outside the ) airport campus, plots of l<strong>and</strong>acquired to enable future expansion, <strong>and</strong> compensatorymitigation sites created to restore the ecologicalbalance.AeroGround Flughafen München GmbHAeroGround Flughafen München GmbH is a whollyowned Flughafen München GmbH subsidiary. Togetherwith its sister companies aerogate <strong>and</strong> Cargogate,it provides a comprehensive range of l<strong>and</strong>side <strong>and</strong> air -side services for aviation. These include aircraft loading<strong>and</strong> unloading, baggage <strong>and</strong> cargo h<strong>and</strong>ling, passenger<strong>and</strong> crew transports, l<strong>and</strong>side h<strong>and</strong>ling (providedby aerogate) <strong>and</strong> cargo h<strong>and</strong>ling (provided by Cargogate).AeroGround collaborates closely with aerogate<strong>and</strong> Cargogate to operate as a full-service provider,offering customers tailored service packages from asingle source.Consumer ActivitiesConsumer Activities is responsible for planning <strong>and</strong>managing Munich Airport’s entire consumer business.Its activities include developing, marketing <strong>and</strong> managingretail, hospitality <strong>and</strong> advertising in line withconsumer dem<strong>and</strong>. One of the division’s units is Park -ing <strong>and</strong> Services, which operates a wide range ofairport parking facilities <strong>and</strong> develops <strong>and</strong> deliversinnovative, value-added products <strong>and</strong> services forcustomers.) Glossary27
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentPopulation in Munich Airport’s catchment areaDüsseldorfWürzburgFrankfurtErlangenPragueFürth NurembergHeilbronnPforzheimRegensburgStuttgartIngolstadtReutlingenUlmAugsburg MUCLinzWelsMunichSalzburgViennaGenevaMXPZurichBGYInnsbruckBolzano0 – 60 min.: 3.89 million61–120 min.: 7.25 million121–180 min.: 13.14 millionover 180 min.Based on fastest routes calculated by the software MicrosoftLIN® AutoRoute ®Passengers’ reasons for travel in Terminals 1 <strong>and</strong> 2 in 2011Total passengers: 37.8 millionBusiness43%Leisure57%A wide range of businesses on campusWith around 7,000 <strong>and</strong> close to 10,000 employees respectively,the FMG Group <strong>and</strong> the Lufthansa Groupare the two biggest employers at the airport. In total,almost 29,600 people work at the airport, includingmore than 25,300 employees <strong>and</strong> around 1,700 publicservants, in ten different sectors <strong>and</strong> industries.The majority of airport workers (almost 10,300) areemployed by airlines or in the general aviation <strong>and</strong>h<strong>and</strong>ling sectors; a further 7,700 or so work in airportoperations <strong>and</strong> security; 2,800 are involved in generalservices; <strong>and</strong> 2,500 work in the hospitality, restaurant<strong>and</strong> catering industry. Besides the various public <strong>and</strong>government agencies <strong>and</strong> offices, there are organizationsin a number of other sectors at the airport– including banking <strong>and</strong> commerce, freight warehousing<strong>and</strong> forwarding, engineering, servicing <strong>and</strong>maintenance, car hire, bus <strong>and</strong> transfer services, <strong>and</strong>travel <strong>and</strong> tourism – which together employ a further6,300 people.Slower global economic growthHaving grown 4.3 percent in 2010, the global economyfaltered in 2011, particularly in the year’s latterhalf, due to factors like the European sovereign debtcrisis, the earthquake in Japan, signs of emergingeconomies overheating, <strong>and</strong> restrictive economicpolicies. As a result, growth rates either slowed (toaround 2 percent in Europe <strong>and</strong> roughly 4 percent inSouth America, for example) or slid into negative territory(to -0.7 percent in Japan). Only China, the world’ssecond-largest econ omy, managed to sustain its highgrowth of more than 9 percent. The global rate ofgrowth in 2011 was a round 3 percent.Sales up 6.4 percentAn 8.8 percent increase in the passenger volumegave our sales <strong>and</strong> earnings a boost, lifting FMGGroup sales to €1.151 billion in 2011, up 6.4 percenton the prior year. The Group’s two revenue streamsremained in equilibrium, with non-aviation businesscontributing around 48 percent of Group sales <strong>and</strong>aviation business the remainder. Our aviation revenuesessentially consist of l<strong>and</strong>ing fees <strong>and</strong> groundh<strong>and</strong>ling charges whereas our non-aviation streams) www.munich-airport.com/business29
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Company profileq Company strategyp Expansion of Munich Airportp L<strong>and</strong>side access master plan) Glossary) Glossaryinclude building <strong>and</strong> car park rentals, our own retail<strong>and</strong> hospitality operations, <strong>and</strong> utility services. Ouraviation <strong>and</strong> non-aviation businesses contributedequal ly to our sales growth, with each showing a gainof more than 6 percent.Our personnel costs remained more or less flat, yearon year, at €308.1 million. Our material costs includeda one-time expenditure of €69.0 million to form a reservefor a regional impact fund set up in the contextof our project to build a third runway. Adjusted forthis expenditure, our material expenses were around5 percent higher than a year earlier, largely as a resultof a one-time increase in employee phased retirementpayments.Pretax earnings up sharplyHigher sales combined with careful cost managementled to a significant increase in our pretax earningsin fiscal 2011. Adjusted to account for the reservesformed for our regional impact fund (a total chargeof around €69.0 million) <strong>and</strong> for Ground H<strong>and</strong>ling (in -come of around €73.0 million), Group ) earnings beforeinterest <strong>and</strong> taxes (EBIT) rose by €42.2 mil lion,or 14.4 percent, to €334.6 million.Interest income of €104.8 million was up €145.4 millionon the prior year. This was largely due to the elim -ination of all outst<strong>and</strong>ing interest owed to shareholdersin 2010, with a payment of €152.0 million. As of2011, interest on shareholder loans amounts to around€20 million annually.The aforementioned interest payment of €152.0 millionto shareholders was actually transferred in 2011,causing a one-time drop in ) cash flow from operationsto €208.1 million, from the prior-year level of€305.5 million.Adjusted for the special effects noted above, our earningsafter tax (EAT) rose by 17.6 percent, to €193.2 million(2010: €164.3 million, including €152.0 million ininterest paid to shareholders).30
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentCompany strategyBuilding on sustainabilityIn 2010, we conducted a strategy review at Munich Air -port that culminated in the definition of a new ) corporatemission: “By 2015 we will be one of the mostattractive, efficient <strong>and</strong> sustainable hub airports in theworld.”This formally established sustainability as a cornerstoneof what we as a company aim to accomplish.However, our fundamental strategic planning <strong>and</strong> overallstrategy have already been sustainability-driven forseveral years now in that our strategic objectives havecentered on economic, environmental <strong>and</strong> socialperform ance. The various strategic objectives <strong>and</strong>initiatives we are currently pursuing are set out in aprogram that presents all of our sustainability managementactivities clearly <strong>and</strong> transparently.Our mission is ambitious, <strong>and</strong> we can only accomplishit successfully by 2015 if all units at FMG work towardit as one. Our mission statement summarizes our keystrategic emphases from a group perspective <strong>and</strong>helps to ensure a common underst<strong>and</strong>ing of our goalsfor Munich Airport’s development, going forward.In the aviation sector, these goals concern domestic,European <strong>and</strong> long-haul traffic, as well as related infrastructure<strong>and</strong> services. In the non-aviation sector, weaim to provide interesting offerings that make MunichAirport an attractive place for visitors <strong>and</strong> air travelersalike. We want to exp<strong>and</strong> the airport as an in-dem<strong>and</strong>location for real estate <strong>and</strong> to win new business forour “airport city.” Here, customer satisfaction <strong>and</strong> efficientinternal processes are key. And, of course, weaim to accomplish these goals in an environmentallycompatible manner.Through our strategy, we want to create lasting valuefor our shareholders, our surrounding region, our busi -ness partners <strong>and</strong> our customers. The full text of ourstrategic mission statement is available on the ) Internet.Strategy <strong>and</strong> managementTo help us fulfill our mission of becoming one of themost attractive, efficient <strong>and</strong> sustainable ) hub air -ports in the world by 2015, we have defined a strategicroadmap at group level. The roadmap contains theGroup’s 20 strategic goals for the period through to2015; these are based on different balanced-scorecarddimensions (finance, customers/markets, processes<strong>and</strong> employees) <strong>and</strong> are revised <strong>and</strong> updated on afive-year cycle. Every unit throughout our organizationmakes its own distinct contribution toward thesegoals.In our strategic planning process, all company unitsbegin by developing initiatives aimed at accomplishingthese goals at the operational level. In line with oureconomic planning requirements, we define specificmeasures each year that are designed both to turnthese initiatives into specific actions <strong>and</strong> to coordinatethese measures unit-wide.Our wider efforts to deliver our strategy do not centersolely on formulating initiatives <strong>and</strong> uniting themwithin a program, we also operationalize our strategyby defining key performance indicators that enable usto measure strategic outcomes <strong>and</strong> the effectivenessof our initiatives. This approach makes our goals as anorganization more concrete <strong>and</strong> clearly establishesthe steps we take along the way to accomplishingour mission.) www.munich-airport.com/strategy) www.munich-airport.com/mission) Glossary31
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Company profileq Company strategyp Expansion of Munich Airportp L<strong>and</strong>side access master planThe philosophy underlying our strategic planning atFMG is as follows:) Executive management at Group level is responsiblefor setting the strategic direction by definingtargets, each of which is measured using therelevant key performance indicators.) Tier 1 (division level) managers are responsible foraligning with <strong>and</strong> operationalizing strategy in theirdivisions by means of intermediate-term initiatives.The latter’s effectiveness is assessed over timebased on the relevant key performance indicators.) Tier 2 (field level) managers are responsible foraligning with <strong>and</strong> operationalizing strategy in theirsubdivisions by implementing division-specificinitiatives. Performance is measured according tothe relevant strategic KPIs <strong>and</strong> the success of theindividual measures implemented.Strategic planning at Flughafen München GmbHStrategic planningStrategic controlGroup levelTargetsKey performance indicators(KPIs)Division levelInitiativesfor which division is responsibleInitiativesin which division is involvedKey performance indicators(KPIs)Field levelMeasuresfor which department is responsibleActivitiesMeasuresin which department is involvedActivitiesInfluenceKey performance indicators(KPIs)Performance-based executive payDefinition of Group targetsDefinition of individual targets32
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentImplementation of corporate strategy – from ourmission at the topmost level in the organization all theway down to managers’ individual annual targets – isalso the foundation for performance-based remuneration.The latter helps us to deliver our strategyeffectively <strong>and</strong> achieve sustainability targets in thework carried out by our business units.<strong>Sustainability</strong> decision-makersThe FMG Group has a sustainability panel staffed bythe heads of Human Resources, Finance <strong>and</strong> Controlling,Corporate Development <strong>and</strong> Environment,Engineering <strong>and</strong> Facilities, <strong>and</strong> Corporate Communications.The panel reports directly to executive man -agement on a quarterly schedule <strong>and</strong> is tasked withmaking fundamental decisions on sustainabilitybasedprojects.Members of the sustainability panelPresident <strong>and</strong> CEO, Personnel Industrial Relations DirectorHead of HumanResourcesHead of Finance<strong>and</strong> ControllingHead of CorporateDevelopment <strong>and</strong>EnvironmentHead of CorporateCommunicationsHead of Engineering<strong>and</strong> Facilities33
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Company profileq Company strategyp Expansion of Munich Airportp L<strong>and</strong>side access master plan) Glossary) See p. 150 ff. for oursustainability program<strong>and</strong> strategicobjectivesMateriality matrix <strong>and</strong> sustainabilityprogramThe materiality matrix presented here illustrates howwe prioritize key sustainability topics. Each topic’s positionwithin the matrix reflects its importance for our) stakeholder groups <strong>and</strong> for Flughafen MünchenGmbH.The topics’ relevance for stakeholders was assessedby means of surveys conducted online <strong>and</strong> by mail.The feedback we received largely reaffirmed our the -matic focuses, resulting only in minor changes betweenthe review year <strong>and</strong> the year before. More importancewas accorded to “Airport development <strong>and</strong>dem<strong>and</strong>-driven capacity expansion,” “Environmentalprotection <strong>and</strong> conservation” <strong>and</strong> “Knowledge sharing<strong>and</strong> innovation,” whereas “Charitable giving <strong>and</strong>sponsorships” were seen as less important than previously.The updated matrix reflects these changes.The sustainability panel decided which issues wereimportant for Flughafen München GmbH.FMG has developed a sustainability program thatreflects the company’s ) strategic objectives <strong>and</strong>helps correlate our numerous activities <strong>and</strong> initiativeswith our materiality matrix clearly <strong>and</strong> transparentlyfor an external audience.Materiality matrixImportance for stakeholdersHigh Very high’ Charitable giving <strong>and</strong> sponsorships’ Supplier management’ Knowledge sharing <strong>and</strong>innovation’ Equal opportunity <strong>and</strong>cultural diversity’ Political stance <strong>and</strong> participationin organizations’ Waste management’ Water <strong>and</strong> wastewater’ H<strong>and</strong>ling of hazardoussubstances’ Career training’ Better integration with masstransit systems’ Collaboration with homeregion’ Environmental protection<strong>and</strong> conservation’ Co-determination’ Risk management <strong>and</strong>anti-corruption initiatives(compliance)’ Industrial health <strong>and</strong> safety’ Health management’ Continued education <strong>and</strong>HR development’ Reduction of environmentalfootprint’ Stakeholder dialogue <strong>and</strong>communications’ Continuous value creation’ Safety <strong>and</strong> security’ Airport development <strong>and</strong>dem<strong>and</strong>-driven capacityexpansion’ Energy efficiency <strong>and</strong>resource conservation’ Customer satisfaction <strong>and</strong>feedback management’ Competitive operatingstructures’ Promotion of employeesustainability awareness’ Sustainable buildingHighVery highImportance for Flughafen München GmbH34
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentOur perception of sustainabilityEconomy Environment Social equityTriple bottom lineFocuses of strategic sustainability managementCompany <strong>and</strong>managementEnvironmental <strong>and</strong>climate protectionWorkforce <strong>and</strong>work environmentDialogue <strong>and</strong> socialresponsibilityOverview of sustainability targets’ Sustain value creationthrough a yield-driven businessmodel <strong>and</strong> continuedinvestment in our location’ Improve customer focus<strong>and</strong> product <strong>and</strong> serviceportfolio’ Establish managementstructures to foster responsiblecorporate leadership’ Exp<strong>and</strong> environmentalmanagement systemcompany-wide’ Increase resource efficiency<strong>and</strong> reduce emissions<strong>and</strong> other impacts’ Improve efficiency <strong>and</strong>operational excellence’ Ensure we have the rightnumber of people withthe right knowledge <strong>and</strong>skills to achieve our growthtargets’ Establish <strong>and</strong> continuallydevelop a culture of leadershipexcellence within theGroup’ Increase our attractivenessas an employer’ Develop in partnershipwith the region’ Embrace social responsibility) See p. 150 ff. for oursustainability programEuropean initiative to promotesustainable air transportThe EU’s Directorate-General for Research <strong>and</strong> Innovation<strong>and</strong> a think-tank made up of aviation <strong>and</strong>air transport experts were tasked by Siim Kallas, theEuropean Commission’s Vice President responsiblefor transport, with developing a vision for the futureof aviation in 2050. The think-tank’s report, Flightpath2050, presents a strategy based on the systematicwidening of measures in the area of air transport ini -tially proposed in a European Commission whitepaperpublished on March 28, 2011. Dr. Michael Kerkloh,Flughafen München GmbH’s president <strong>and</strong> CEO,represented European airports in the think-tank <strong>and</strong>helped shape the long-term strategy unveiled at Aerodaysin Madrid on March 30, 2011.Designed to promote sustainable growth in aviationat the EU level, the strategy focuses on strengtheningthe competitiveness of Europe’s air transportindustry, on achieving significant further reductionsin air traffic’s emissions, <strong>and</strong> on satisfying the generalneed for mobility – in part through the optimization ofnetworking between transport modes.The Advisory Council for Aviation Research in Europe(ACARE) is currently conducting a detailed reviewof the objectives outlined in Flightpath 2050. In aninitial step, five working groups with a total of morethan 300 specialists are preparing guidelines on re -search <strong>and</strong> innovation projects to be implementedthrough to the year 2050. The guidelines are slatedfor completion in July 2012 <strong>and</strong> are to be presented atthe ILA Berlin Air Show in September 2012. FlughafenMünchen GmbH is actively involved in this process,both as a member of ACARE’s governing body, theGeneral Assembly, <strong>and</strong> as the organization headingone of the five working groups.The company is particularly keen to encourage greater) intermodality by creating more attractive, customer-friendlierlinks between aviation <strong>and</strong> other modesof transport, to further reduce air traffic’s environmentalfootprint (particularly for communities located closeto airports), <strong>and</strong> to optimize airport facilities, processes<strong>and</strong> aviation procedures.The Flightpath 2050 report is available on the ) Internet.) Glossary) http://ec.europa.eu/transport/air/hlg_aviation_aeronautics_en.htm35
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Company profileP Company strategyq Expansion of Munich Airportp L<strong>and</strong>side access master planExpansion of Munich AirportPlans for the futureMunich Airport has steadily advanced to becomeone of Europe’s foremost aviation hubs. In 2011, welogged some 37.8 million passenger movements –three times the volume recorded in 1992, the firstyear at our current location. Forecasts indicate thatthe volume will likely continue to rise, to around58.2 million by 2025. This is because besides servingoriginating <strong>and</strong> terminating air travelers, our airport isan important hub airport for international air travelers.We also expect to see the volume of cargo that weh<strong>and</strong>le continue to increase. Our goal is to maintainour leading position in Europe <strong>and</strong> to continue to meetthe growing dem<strong>and</strong> for air transport within our catchmentarea, comprising southern Germany <strong>and</strong> neighboringcountries. This is why we filed for zoning approvalfor a third runway in 2007 <strong>and</strong> now, nearly twodecades after we began operating at our location inErdinger Moos, are gearing up to exp<strong>and</strong> the airportin line with tomorrow’s dem<strong>and</strong> for air transport.At the limits of capacityToday’s two-runway system, capable of supporting amaximum of 90 aircraft movements an hour, is alreadycausing significant bottlenecks. For several hours eachday, the system is at saturation point <strong>and</strong>, during peakhours, we are unable to meet airlines’ requests forarrival <strong>and</strong> departure slots (the scheduled times atwhich planes can take off <strong>and</strong> l<strong>and</strong>). Even during offpeakhours, we have more or less exhausted our optionsfor increasing capacity. This means that airlineshave no appreciable scope for exp<strong>and</strong>ing their routenetworks out of Munich.The solution is to build a third runway, bringing ourcapacity up to at least 120 aircraft movements anhour – a level that would allow us to accommodateour projected traffic growth.Passenger dem<strong>and</strong> through to 2025Historical <strong>and</strong> projected growthCommercial passengers (million)Cargo dem<strong>and</strong> through to 2025Historical <strong>and</strong> projected growth(incl. mail, excl. trucked freight)Metric tons (thous<strong>and</strong>)706050403020 12.01023.128.637.8 49.8 58.29008007006005004003002001008014821830456581019922000 2005 20112020 202519922000 2005 2011 20202025Source: Munich Airport, February 2012; Intraplan Consult GmbHSource: Munich Airport, February 2012; Intraplan Consult GmbH6,2 %7,3 %Gewerbliche Passagiere in Millionen3,7 %704,4 %605040München1992–2011DeutscherDurchschnitt 1(ohne MUC)1992–2011München1992–201130DeutscherDurchschnitt 20 1(ohne 10MUC)1992–20110369008007006005004003002001000
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentNational economic factorsFor the state of Bavaria <strong>and</strong> the local region, an effi -cient hub airport is a significant location factor, notleast because access to air transport plays a crucialrole for the state’s exporting industries. With an exportrate of around 50 percent, Bavaria is one of the mosteconomically successful regions, not just in Europebut in the whole world. The state also enjoys an out -st<strong>and</strong>ing reputation as a center of research <strong>and</strong> devel -opment, a hotbed of cutting-edge technology, a majorbanking <strong>and</strong> trade show location, <strong>and</strong> a strong logisticscenter. On top of this, Bavaria is the number-onetourist destination in Germany.To maintain Bavaria’s international competitive edge,we need to improve <strong>and</strong> exp<strong>and</strong> connections to theworld’s growth markets, <strong>and</strong> a key requirement is anefficient airport that is ready <strong>and</strong> equipped to meettomorrow’s challenges. To quote the state government’sstrategy paper for future development, “Actionmust be taken in the long term to ensure that Munich’scommercial airport, an important European aviationhub, can exp<strong>and</strong> in line with dem<strong>and</strong> <strong>and</strong> operateef ficiently.”The construction of a third runway would lead tothe creation of 11,000 new jobs compared to today:Deutsche Lufthansa AG, for instance, is planning toboost the size of its long-haul fleet from 24 jets to 40.Stationing a single A340-600 long-haul jet creates220 jobs directly at the airport, plus additional jobs inother companies, <strong>and</strong> can be compared in terms ofits importance for the labor market to the arrival of asubstantial midsized company. The growth projectedfor Munich Airport will therefore continue to have abeneficial impact on employment. And even the actualconstruction of the third runway, which would likelymean investing at least €1.2 billion, represents anexceptionally important economic stimulus.Extensive compensatory measuresIf the third runway is built <strong>and</strong> the airport exp<strong>and</strong>ed,we will also implement a comprehensive l<strong>and</strong>scapeconservation <strong>and</strong> mitigation program. Extensive compensatorymeasures in an area covering 806 hectares,plus isolated parcels (non-contiguous sectionsof l<strong>and</strong> with a total additional area of around 100 hectares)would ensure that the unavoidable ecologicalimpacts on nature, the l<strong>and</strong>scape <strong>and</strong> water resulting37
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Company profileP Company strategyq Expansion of Munich Airportp L<strong>and</strong>side access master plan) www.munich-airport.com/aircraft-noisefrom the construction of the new runway are mitigatedcompletely. In fact, we expect these measures wouldeven improve the situation around the airport, whichin some regards is less favorable for local animal <strong>and</strong>plant life on account of the intensive agriculture in thearea.To offset intervention affecting the l<strong>and</strong>scape <strong>and</strong> plant<strong>and</strong> animal life, we would create more than 280 hectaresof new grassl<strong>and</strong> adjacent to the third runway<strong>and</strong> maintain it in a way that provides the right kind ofhabitat for ground-nesting species of birds. Our aim isto secure our membership of Natura 2000, a Europewidenetwork of nature protection areas. We wouldalso implement compensatory measures importantfor species conservation outside as well as inside theairport perimeter. Exp<strong>and</strong>ing the airport would notcause the overall diversity of species to decline in thearea.The package of measures associated with the airport’sexpansion <strong>and</strong> the compensatory measures requiredare set out in a l<strong>and</strong>scape conservation plan issued bythe government authority responsible for approvingthe construction project.Noise impact on local residentsNoise control requirements at Munich Airport issuefrom the Air Traffic Noise Act, which passed into lawin Germany on June 7, 2007. In addition, FlughafenMünchen GmbH is committed to minimizing noisenuisance caused by aviation in its surrounding region.In line with current aviation noise legislation, the re -gional government of Upper Bavaria, the relevantzoning authority, examined the potential noise impactfrom the third runway as part of a wider assessmentconducted during the zoning approval process. Duringthis process, the authority weighed the interestsof noise protection against the benefits that wouldresult from the new runway. The definition of noisecontrol areas <strong>and</strong> decisions on possible entitlementto reimbursement for sound-proofing in buildings sub -ject to specific levels of noise during the day or atnight must comply with the terms of the Air TrafficNoise Act. Taking into account the Act’s provisions38
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentconcerning entitlement to reimbursement <strong>and</strong> com -pensation as well as incidental provisions in thezoning approval, the construction of the runway can,according to the zoning authority, be reconciled withthe need to protect the general public <strong>and</strong> neighborsfrom aviation noise.Statutory entitlementsAccording to a Supreme Court ruling, owners of residentialproperty subject to an equivalent ) continuoussound level (LAeq) from air traffic of 70 dB(A)during the day or 60 dB(A) at night are entitled to reimbursementof costs on grounds of “constitutionalreasonableness.”In its zoning approval, the regional government ofUpper Bavaria widened this entitlement significantly,stating that it applied to around 100 l<strong>and</strong> owners. Noiselevels on their property do not actually reach 70 dB(A)during the day or 60 dB(A) at night, but the l<strong>and</strong> inquestion is located within a b<strong>and</strong> 210 meters to thenorth or south <strong>and</strong> 2,000 meters east or west of theextended axis of the runway. The Upper Bavarian re -gional government has therefore done significantlymore than is required by law to ensure the protectionof the residents of Attaching. It justifies its decisionby pointing out that the residents would be subjectto multiple impacts because of their proximity to thecurrent north runway. This means that l<strong>and</strong> ownersare subjected to daytime noise levels of 67 dB(A) ormore, as well as visible <strong>and</strong> perceptible overflights<strong>and</strong> air turbulence caused by arriving <strong>and</strong> departingaircraft.Passive noise control <strong>and</strong> compensationfor noise in outdoor living areasThe provisions of the Air Traffic Noise Act <strong>and</strong> ancillaryregulations govern reimbursement of expenses fornoise protection in buildings <strong>and</strong> compensation forimpairments to outdoor living areas.Under Section 4, Paragraph 3, Item 3 of the Air TrafficNoise Act, a noise control zone must be defined bystatutory order as soon as zoning approval is grantedfor the construction of the third runway. The noise con -trol zone serves as a basis for settling claims for reimbursementof expenses incurred by fitting soundinsulation to buildings <strong>and</strong> for compensation for im -pairments to outdoor living areas: In the daytime noisecontrol zone 1 (LAeq = 60 dB(A) during the day) soundinsulation <strong>and</strong> compensation are granted; in the nighttimenoise control zone (LAeq = 50 dB(A) at night, orLAmax = 6 x 68 dB(A)), affected homes qualify forsound insulation, including additional ventilation. Insome instances, properties are located in daytimenoise control zone 1 <strong>and</strong> in the nighttime noise con -trol zone. In addition, the majority of properties affectedare located within the existing combined daytime<strong>and</strong> nighttime noise protection zone (in the amendedversion approved on March 23, 2001). Property in thisarea already qualified for <strong>and</strong> received sound insulationunder the original zoning approval for Munich Air port.This means that around 80 percent of the buildingsin the combined daytime <strong>and</strong> nighttime protectionzones have already been fitted with sound insulation.For the most part, buildings which have not been fittedwith sound insulation as yet <strong>and</strong> will now qualify arelocated in Attaching, Berglern, Mitterlern <strong>and</strong> Manhartsdorf.Sound insulation in buildings <strong>and</strong>compensation for noise in outdoor livingareasProperties qualify for sound insulation when the noisecontrol zones (defined by daytime noise contour 1 <strong>and</strong>the nighttime noise contour) are established by anadministrative order of the Bavarian Ministry for Eco -nomic Affairs, Transport <strong>and</strong> Technology. Under currentlegislation, claims for compensation for noise inoutdoor living areas can be filed once the runway goesinto operation. However, the federal government mustfirst issue an implementation order as required underSection 9, Paragraph 6 of Air Traffic Noise Act, determiningthe nature <strong>and</strong> scope of the compensation.) Glossary39
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Company profileP Company strategyq Expansion of Munich Airportp L<strong>and</strong>side access master plan) www.munich-airport.com/video) GlossaryKey regulations concerning noise) Operating regulationsMunich Airport can impose operating restrictionsto temporarily or permanently limit, or completelyprohibit, the operation of particularly noisy types ofaircraft. Aircraft without an ICAO Annex 16 noisecertificate are not allowed to take off or l<strong>and</strong> atMunich Airport. On the airport’s third runway, thesame applies to Chapter 2 aircraft 1 <strong>and</strong> to marginalChapter 3 aircraft.) No changes to the current night-flight curfewThe current night-flight curfew, introduced in 2001,will remain unchanged, not least because FMG hasnot applied to conduct regular night flight operationson the airport’s third runway. The runway mayonly be used in exceptional circumstances – in theevent of an emergency or if one of the two existingrunways is closed. This means that current noise<strong>and</strong> movement quotas will remain the same. Theprovisions contained in the zoning approval are suchthat people need not be concerned that they couldbe affected by the relocation of current night flightsto the third runway or the introduction of additionalnight flights on the third runway.Zoning approval grantedThe regional government of Upper Bavaria grantedzoning approval for the construction of a third runwayon July 26, 2011. The approving authority reviewed<strong>and</strong> considered all of the impacts associated with therequirements submitted <strong>and</strong>, by issuing its decision,has expressly approved the plans we submitted forthe third runway.The statutory approval of the Upper Bavarian regionalgovernment is a key milestone inasmuch as it meansthat the construction project can begin immediately.However, the company has chosen to follow the adviceof Bavaria’s Higher Administrative Court <strong>and</strong> notto proceed until the principal proceedings concerningthe project have reached a conclusion.Since the grant of zoning approval, voting in a municipalreferendum in Munich has gone against a thirdrunway at the airport. However, the approval is stillunder judicial review, <strong>and</strong> if the courts find in ourfavor, this will grant us a long-term right to build therunway – something of major strategic value for us.A satellite building for Terminal 2In December 2010, FMG <strong>and</strong> Lufthansa’s supervisoryboards gave the go-ahead for the construction of a) satellite that will significantly boost capacity atMunich Airport’s Terminal 2. With this project, FMG<strong>and</strong> Lufthansa, who jointly operate Terminal 2, areresponding to the swift growth in passenger numbersat the airport. Terminal 2, inaugurated in 2003<strong>and</strong> designed specifically to support Lufthansa <strong>and</strong>partner airlines’ hub operations, h<strong>and</strong>led 26.5 millionpassengers in 2011, exceeding its notional annualcapacity limit of 25 million.Augmenting passenger capacityThe new building, which has already received zoningapproval, will create the capacity to h<strong>and</strong>le an additional11 million passengers a year. The satellite will costaround €650 million to build <strong>and</strong>, as with Terminal 2previously, the expense will be shared 60:40 by FMG<strong>and</strong> Lufthansa.The new satellite has been designed as an add-onto the existing baggage sorting hall on the apron tothe east of Terminal 2. Under the current plans, thesatellite will have passenger h<strong>and</strong>ling facilities onthree levels, plus a total of 52 gates. The buildingwill also have 27 aircraft st<strong>and</strong>s, more than doublingthe number of contact st<strong>and</strong>s currently available forTerminal 2.An energy-efficient people mover systemThe satellite will be equipped with an undergroundautomated people mover (APM) system connectingit to Terminal 2. The system’s two stations <strong>and</strong> tunnelwere built to a semi-finished state when Terminal 2was erected. Three trains, each with four cars, willshuttle between the terminal <strong>and</strong> the satellite at a1Exception: Aircraft certified by the Federal Office of Aviation or an EU memberstate. No exceptions will apply on the airport’s third runway.40
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentThe satellite’s bright,light-filled main concoursespans three floors<strong>and</strong> combines engaginginterior <strong>and</strong> retail spaceswith easy wayfinding <strong>and</strong>short distances.speed of around 25 km/h on the 400-meter two-trackline. The APM will have the capacity to carry as manyas 9,000 passengers per hour in each direction.The APM has been designed to meet strict requirementsfor energy-optimized transportation <strong>and</strong> powerefficiency. For example, the trains’ braking energy iscaptured <strong>and</strong> converted into electricity, which is fedinto the airport’s power network. Optimized, dem<strong>and</strong>basedmanagement of train capacity <strong>and</strong> the low ac -celeration <strong>and</strong> speed of travel help limit the amountof power the APM consumes. The energy footprintis small overall, thanks in part to the use of advancedtechnology like high-performance LEDs <strong>and</strong> state-ofthe-artheating <strong>and</strong> cooling systems to reduce energyconsumption.Green from the ground upAs a terminal building, the satellite falls under ourambitious carbon targets, which means we want itscarbon emissions to be 40 percent lower than thoseof our two existing terminals. This calls for a varietyof measures. For instance, on its outside the satellitewill have a double-skin corridor façade containinga cold storage medium that helps to optimize thebuilding’s energy performance. During the summermonths, this medium, known as a phase change materialor PCM, stores cooling energy when temperaturesdrop at night <strong>and</strong> then uses that energy to helpcool the building during the day. The building’s HVACsystem will employ advanced ) air source technology,<strong>and</strong> the lighting will partly comprise LEDs <strong>and</strong>will be dimmable. On the inside, the escalator areaswill be divided off from the building concourse bya wall of glass. Isolating them in this way creates aclimate buffer within the satellite. The building’s contactst<strong>and</strong>s will be equipped with a system to supplyplanes with preconditioned air.Inauguration planned for 2015Preparatory work on the satellite began in the summerof 2011, <strong>and</strong> the actual construction work commencedin the spring of 2012. During the course of this year,numerous contracts that will appeal to local small <strong>and</strong>midsize businesses in the airport’s surrounding areawill be put out to tender. The airport has launcheda special website as a central contact point wherecompanies can register <strong>and</strong> describe the constructionservices they offer. The new passenger building is dueto open in 2015.) Glossary41
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Company profileP Company strategyP Expansion of Munich Airportq L<strong>and</strong>side access master planL<strong>and</strong>side access master plan) See p. 69 for details ofcommunity transportinfrastructure projectsThe importance of efficient l<strong>and</strong>sideaccessMunich Airport is one of Europe’s major intermodaltransport hubs <strong>and</strong>, as such, relies on user-friendly<strong>and</strong> efficient l<strong>and</strong>side access. For years now, we havebeen working to improve road <strong>and</strong> rail access, butthe planning authority <strong>and</strong> decision-making powersreside with local communities <strong>and</strong> transport carriers.Although ) road capacity has been exp<strong>and</strong>ed in linewith dem<strong>and</strong> in recent years, the development of railcapacity has been delayed, even though it would helpto reduce carbon emissions caused by l<strong>and</strong>side trafficto <strong>and</strong> from the airport.Customer survey on rail accessIn light of this situation, we conducted extensive marketresearch on Munich Airport’s rail access in 2011in an effort to underst<strong>and</strong> where customers see theshortcomings of today’s rail services <strong>and</strong> to assesscustomers’ expectations in terms of optimum railaccess.The study’s initial phase, which focused on qualitativemarket research, consisted of individual interviewsdesigned to evaluate the needs <strong>and</strong> expectations ofthose passengers who begin their air journeys at ourairport or who come here as visitors. The poll, conductedin the fall of 2011, showed that customersprefer time efficiency <strong>and</strong> convenience when choosingtheir access mode. The study’s second phase willconsist of quantitative analysis conducted to developrepresentative statements.The long-term strategy for improving the airport’s railaccess, already approved by policymakers, will berefined in line with customer expectations <strong>and</strong> theresults of this study. At the same time, we plan tointroduce improvements that will benefit customersin the shorter term.Priority for links between rail <strong>and</strong> airtransportAs part of its Federal Transport Infrastructure Plan,the German government is preparing an overarchingtransport strategy that promotes interconnectionbetween the country’s airport infrastructure <strong>and</strong> itsroad <strong>and</strong> rail networks <strong>and</strong> the creation of attractivelinks between rail <strong>and</strong> air services. For internationalairports, connecting directly to the national mainlinerail network is especially important.42
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentA study into the benefits of intermodality for transport<strong>and</strong> the economy – initiated by Munich Airport <strong>and</strong>prepared in association with Frankfurt <strong>and</strong> Düsseldorfairports, Deutsche Lufthansa, national rail carrierDeutsche Bahn <strong>and</strong> German air traffic control operatorDFS – highlights the economic effectiveness ofair-rail intermodality. The study shows that linking rail<strong>and</strong> air transport creates significant benefits, bothfor transport systems <strong>and</strong> the national economy. Asyet, this benefit is not addressed in full in the federalgovernment’s current transport infrastructure plans;however it could be taken into account if the assessmentprocedure were amended.The study is valuable in that it will help prioritize ini -tiatives to improve airports’ rail connectivity in theupdated Federal Transport Infrastructure Plan announcedfor 2015.43
IntroductionCompany profile <strong>and</strong> strategy Service portfolio Communication <strong>and</strong> social responsibilityp Aviation businessp Non-aviation businessp Quality, security <strong>and</strong> safetyPMore than37,000 m²of retail <strong>and</strong>hospitality spaceNo. 6QAn optimized retailmix with new <strong>and</strong>refitted stores in the“airport city”in the rankings ofEurope’s ten leadingairports44
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentService portfolio46 Aviation business51 Non-aviation business55 Quality, security <strong>and</strong> safety45
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Aviation businessp Non-aviation businessp Quality, security <strong>and</strong> safetyAviation business) Our video “Impressions2012” takes a brief lookback at the past year atMunich Airport.www.munich-airport.com/video) www.munich-airport.com/statisticsNow number six in EuropeMunich Airport is firmly established as a major Europeanaviation hub. Logging 37.8 million passengermovements in 2011, Bavaria’s gateway to the worldbypassed Rome Fiumicino to rank sixth among thebusiest passenger airports in Europe for the first time.The sharp rise in our passenger volume – by 8.8 percent,or more than 3 million – also boosted our positionin the global rankings from 30th to 27th place.This is evident from the continuous rise in the num -ber of transfer passengers. Compared to 2010, whentransfers accounted for 37 percent of our passengerbase in Munich, our transfer volume reached 40 percentin 2011. To put this figure in perspective, transfersaccounted for just 12 percent of passengers backin 1992, when the airport began operating at its currentlocation.Transfer passenger flows in 2011Munich compared to other airports in EuropePassenger volume in 2011 (million)Domestic – Domestic< 1%69.461.056.449.8 49.637.8 37.7 37.5 34.4 33.7Originatingpassengers60%Transferpassengers40%Domestic – International16%International –International68%International – Domestic16%London HeathrowParis Charles de GaulleFrankfurtAmsterdamMadridMunichRome FiumicinoIstanbul AtatürkBarcelonaLondon GatwickSource: Passenger survey in 2011, 7.5 million outbound transfer passengers(extrapolated from survey data)Mean traffic growth rates 2009–2011Munich AirportAirports in Germany excl. MUC 1Whereas two-thirds of Germany’s airports saw pas -senger traffic remain flat or decline, <strong>and</strong> none re cord -ed as sharp a gain in passenger numbers in 2011, Munichcan look back on a truly successful year markedby robust traffic growth.6.2%3.7%7.3%4.4%4.1%Based on takeoffs <strong>and</strong> l<strong>and</strong>ings, which were up by5.1 percent year on year, Munich also ranked sixth inEurope, with 410,000 aircraft movements in total –around 20,000 more than in 2010.CommercialpassengersCargo0.8%Aircraft movements(total traffic)1German Airports Association (ADV)Steady gains in transfer trafficMunich Airport’s ability to sidestep the wider trendwithin its industry <strong>and</strong>, unlike many other airports, toreport such gratifying results in spite of the difficultmarket, is due largely to its rapidly exp<strong>and</strong>ing role asa hub airport.One key point in our favor is that Munich is designedto be a transfer-friendly airport, where passengersonly need to cover short distances. As a result, theminimum connecting time – the amount of time re-46
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentquired to enable a passenger to make a connectionfrom an inbound flight to an outbound flight – is just30 minutes in Terminal 2. In Terminal 1, the minimumconnecting time is 35 minutes; if a transfer involvesswitching between terminals, it is 45 minutes. This isa crucial factor when organizing transfer connectionsby air.Those who benefit most from Munich’s gradual transitionfrom a point-to-point airport to a ) hub airportare the local population <strong>and</strong> businesses in Bavaria <strong>and</strong>neighboring states. Besides a tightly meshed networkof European routes serving more destinations in Europethan any other airport, we offer them access toan extensive <strong>and</strong> attractive range of long-haul services.Today, Germany’s two main hub airports, Munich <strong>and</strong>Frankfurt, now h<strong>and</strong>le 90 percent of the country’s in -coming <strong>and</strong> outgoing intercontinental traffic. Both economically<strong>and</strong> environmentally, a hub-centric strategyis the most efficient way to organize intercontinentaltraffic, because it concentrates passengers in just afew flights <strong>and</strong> enables carriers to make optimum useof aircraft capacity.In 2011, the number of seats offered per flight atMunich Airport increased to 134, up four on a yearearlier, reflecting the continuing trend toward largeraircraft. On average, 99 passengers were carried oneach flight – three more than in 2010.Higher service frequencies on intercontinentalroutesThe number of weekly takeoffs from Munich to intercontinentaldestinations alone more than doubledbetween 2001 <strong>and</strong> 2011, from 138 to 278. Passengernumbers on intercontinental routes increased byclose to 7 percent compared to 2010, with volumeson services to <strong>and</strong> from Asia growing faster than others.For the first time in years, it was not traffic to theGulf region that drove the rise in Asia traffic: In 2011growth rates were higher on services to destinations) GlossaryLong-haul destinations in 2011CalgaryVancouverPortl<strong>and</strong>Salt Lake City TorontoSan FranciscoLos AngelesDenver ChicagoAtlantaHoustonFort MyersCancúnMontrealBostonNew YorkPhiladelphiaWashingtonCharlotteMiamiVaraderoPuerto PlataLa RomanaPunta CanaBridgetownIlha do SalBoa VistaMunichYekaterinburgTyumenTashkentErbilSulaymaniyahAmmanDohaRiyadh Dubai DelhiAbu Dhabi Ras al-KaimahJeddah Muscat MumbaiMaleIrkutskDalianBeijingSeoulBusanTokyoShanghaiHong KongBangkokPhuketSingaporeMombasaJakartaSão PauloWindhoekJohannesburgCape TownMauritius47
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Aviation businessp Non-aviation businessp Quality, security <strong>and</strong> safety) Glossary) Glossaryon the Indian subcontinent <strong>and</strong> in the far east. Thegreatest absolute gains were recorded for India <strong>and</strong>the city state of Singapore, not least as a result of anexp<strong>and</strong>ed offering of flights. Traffic to <strong>and</strong> from Thail<strong>and</strong>,however, declined – due to the political unrestin 2010 <strong>and</strong> the long period of flooding in the fall of2011. Both these events led to slower dem<strong>and</strong> <strong>and</strong> areduction in the number of tourist flights offered bycarriers. By contrast, dem<strong>and</strong> for flights to <strong>and</strong> fromJapan remained steady in comparison with 2010, inspite of the tsunami <strong>and</strong> the Fukushima nuclear di -s aster.Growth in traffic across the Atlantic varied: Althoughservices to Canada <strong>and</strong> Brazil saw solid gains, passengernumbers dropped on routes to tourist destinationsin Mexico, Cuba <strong>and</strong> the Dominican Republic.In 2011, carriers in the long-haul sector exp<strong>and</strong>ed theirofferings. A new service to the city of Montreal, withfive flights a week, was launched last winter, <strong>and</strong> fromthe start of the summer season there were daily servicesto Mumbai, São Paulo <strong>and</strong> Singapore. Servicefrequencies also increased on routes to Qatar, Oman,China <strong>and</strong> Canada.In addition to the more frequent services, new destinations,too, helped boost the appeal of intercontinentalservices from Munich. During the summer,our first-ever service to Irkutsk, near Lake Baikal, waslaunched; an existing service to Singapore was augmentedwith an onward leg to Jakarta, the capital ofIndonesia; <strong>and</strong> the route to Riyadh in Saudi Arabia wasextended to Jeddah. Our busiest intercontinentalroute in 2011 was Dubai, followed by Chicago, Newark<strong>and</strong> Tokyo. Since 2011, the carrier Emirates hasregularly operated a new Airbus A380 double-deckwide-body jet on one of its two services a day fromMunich to Dubai. Lufthansa, too, offered flights withan A380, to New York, during a week in December.Swift gains in the continental sectorThe marked rise in the passenger volume is largelydue to continental traffic, which grew 11 percent, yearon year. Gains were especially strong in hub traffic onEuropean routes, with service frequencies <strong>and</strong> thenumbers of available seats both higher.Italy <strong>and</strong> Spain, each with around 2.7 million passengermovements, remained the countries with the highestpassenger traffic in 2011, followed by the UnitedKingdom, Turkey <strong>and</strong> France. London Heathrow wasagain the most popular international passenger destinationin 2011, ahead of Paris Charles de Gaulle <strong>and</strong>Amsterdam.) Workload units (WLU) in all traffic segments 2009–2011Percentage change on prior year34,940,264–5.8%37,487,2837.3%40,689,1338.5%2009 2010 2011Minor rise in domestic trafficOn domestic routes, Munich Airport saw passengernumbers rise almost 5 percent for the year as a whole,with dem<strong>and</strong> for flights within Germany stronger inthe first six months than in the year’s latter half. De -m<strong>and</strong> likely slackened over the course of 2011 as aresult of a new airline ticket tax, levied both on outward<strong>and</strong> return journeys. Given that value added taxis charged on top, the overall tax on domestic traffic isnow disproportionately high. Just as in 2010, our busiestdomestic route was Hamburg, followed by BerlinTegel <strong>and</strong> Düsseldorf.Cargo breaks recordsDuring 2011, we saw our overall ) cargo volume– the total air freight <strong>and</strong> air mail h<strong>and</strong>led at MunichAirport – grow 5.9 percent, year on year, to morethan 303,000 metric tons. With a rise of 4.2 percentcompared to 2010, air freight reached a new all-timehigh of more than 286,000 tons. The swift growth48
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentin this segment was mainly due to a post-bankingcrisisresurgence in the economy, which first began tomount toward the end of 2009.The biggest gains in cargo were in the exports sector,where the volume was up 8.0 percent on the prioryear; imports, by contrast remained flat. This was likelybecause high stock levels in warehouses allowed importersto ship freight by sea rather than by air, which,although slower, is less costly.Given that around 75 percent of air cargo on long-haulroutes is carried as bellyhold freight in passenger air -craft, intercontinental passenger services are of majorimportance in the cargo sector. Freight-only servicescarry just 15 percent or so of air cargo, of which aroundtwo-thirds are flown on medium <strong>and</strong> short-haul routesby express carriers.We transshipped 17,454 tons of mail in 2011, some44 percent more than in the prior year. One-third ofthis was logged on night mail flights. In spite of thesharp <strong>and</strong> sudden gain, the quantity of air mail we generallyh<strong>and</strong>le, which varies depending on DeutschePost’s current transport strategy, is relatively insignificantin terms of our overall cargo tonnage at MunichAirport.AeroGround kicks off with a broadservice portfolioAeroGround Flughafen München GmbH, a whollyowned FMG subsidiary <strong>and</strong> the largest provider ofground services at Munich Airport, began operatingon January 1, 2011. The company’s launch went offsmoothly, thanks largely to efforts in the latter halfof 2010 to create structural <strong>and</strong> organizational foundationsthat would ensure a lasting turnaround forFlughafen München GmbH’s ground services. Bymid-2011, the company mucground Service FlughafenMünchen GmbH had been incorporated into Aero-Ground as well.AeroGround <strong>and</strong> its 2,000-strong workforce offer anextensive portfolio of high-quality services at marketable<strong>and</strong> competitive prices in what is a fiercelycontended market. With a share of 70 percent <strong>and</strong> acustomer base comprising more than 100 domestic<strong>and</strong> international airlines, AeroGround rapidly establisheditself in the marketplace <strong>and</strong> succeeded inwinning long-term h<strong>and</strong>ling contracts with more than20 airlines in the latter half of the year alone. In 2011,our ground h<strong>and</strong>ling operations were back in the blackfor the first time since 1999, with AeroGround han -dling some 135,000 aircraft, including the Airbus A380.To continue providing customers with optimum ser -v ice, AeroGround reorganized its aircraft h<strong>and</strong>ling op -erations in 2011, took on <strong>and</strong> trained additional humanresources, <strong>and</strong> gave full employment contracts to46 former temporary workers. The company also introducedimportant changes designed to boost flexibility:New working time models <strong>and</strong> the creation of across-unit HR pool mean AeroGround can now tailorits services more exactly to its customers’ specificneeds <strong>and</strong> requirements.aerogate continues to exp<strong>and</strong> passengerh<strong>and</strong>lingWholly owned FMG subsidiary aerogate providespassenger h<strong>and</strong>ling services, arrival services <strong>and</strong> abaggage delivery service at Munich Airport. It alsooperates the airport lounges, supervises the airport’sramp areas, <strong>and</strong> runs a IATA ticket agency.) www.aeroground.de49
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Aviation businessq Non-aviation businessp Quality, security <strong>and</strong> safetyCargogate provides cargo h<strong>and</strong>ling, storage, documentation,<strong>and</strong> customs clearance services at MunichAirport. The company has contracts with more than75 percent of the airport’s cargo customers <strong>and</strong>h<strong>and</strong>les more than one-third of the airport’s air cargo.In the first quarter of 2011, the cargo volume exp<strong>and</strong>edswiftly on the back of a resurgence in dem<strong>and</strong>after the financial <strong>and</strong> economic crisis. As the yearunfolded, though, growth slowed, eventually laggingbehind our projections <strong>and</strong> prior-year figures, so thatby yearend the overall tonnage transshipped was down4.1 percent overall compared to 2010.By working closely with its sister companies aerogate<strong>and</strong> Cargogate, AeroGround is able to operate as afull-service provider, offering customers tailored servicepackages from a single source.) www.efm.aero) GlossaryPassenger h<strong>and</strong>ling is a highly competitive market, <strong>and</strong>aerogate has a share of almost 60 percent in Terminal 1.Here, the company’s workforce of around 400 peopleh<strong>and</strong>led more than 33,000 flights <strong>and</strong> over 3 millionpassengers in 2011.In Terminal 1, aerogate’s base of 60 customers includesscheduled carriers like airberlin, Iberia <strong>and</strong> EL AL, touristcarriers like TUIfly, <strong>and</strong> more exclusive long-haulairlines like Emirates, Etihad, Saudi Arabian Airlines,Oman Air <strong>and</strong> Delta Airlines.In Terminal 2, the company is primarily involved inticketing <strong>and</strong> supervision roles for seven Star Alliancecarriers, including Thai Airways, United Airlines, TAP,Qatar <strong>and</strong> ANA.Cargogate: A robust market positionCargogate is a wholly owned Flughafen MünchenGmbH subsidiary which has h<strong>and</strong>led cargo at MunichAirport since 1975. With around 250 employees,EFM: A strong <strong>and</strong> efficient performerEFM – Gesellschaft für Enteisen und Flugzeugschleppenam Flughafen München mbH, co-owned by FlughafenMünchen GmbH (49 percent) <strong>and</strong> GGG Servicefor Airlines GmbH (51 percent), part of the LufthansaGroup, carries out aircraft pushback <strong>and</strong> ) deicingoperations, supplies preconditioned air, <strong>and</strong> providesa range of training <strong>and</strong> consulting services. In its2010/2011 fiscal year, EFM <strong>and</strong> its 140-strong workforceconducted around 150,000 pushback <strong>and</strong> maneuveringoperations <strong>and</strong> deiced roughly 11,600 aircraft.During the company’s prior fiscal, maneuvering<strong>and</strong> deicing operations totaled 131,000 <strong>and</strong> 11,800respectively.Good environmental practices play an important rolein EFM’s operations, <strong>and</strong> the company tracks its en -vironmental performance through its quality managementsystem, which was certified to ISO 9001in 1997. EFM’s environmental management systemgained ISO 14001 accreditation in 2003.50
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentNon-aviation businessA strong non-aviation portfolioOur airport is a place where air travelers, visitors <strong>and</strong>employees converge in large numbers <strong>and</strong>, as such,it is a popular location for restaurateurs, retailers,hoteliers <strong>and</strong> advertisers. Our extensive portfolio ofnon-aviation activities encompasses retail, hospitality<strong>and</strong> services, plus a broad <strong>and</strong> innovative parkingoffering, <strong>and</strong> the development, marketing <strong>and</strong> leasingto clients of buildings <strong>and</strong> spaces on campus for adver -tising <strong>and</strong> events. Our non-aviation business contributed48 percent of FMG Group sales in 2011.Continuously optimizing our offeringIn 2011, we again sought to further exp<strong>and</strong> <strong>and</strong> finetuneour non-aviation activities to accommodatecustomers’ <strong>and</strong> business partners’ changing expectations<strong>and</strong> requirements. We continued to focus onmaking Munich Airport an even more engaging <strong>and</strong>attractive location, not just rolling out new projects<strong>and</strong> tenancies aimed at better addressing targetgroups, but also optimizing our retail business <strong>and</strong>organizing numerous successful events.More than 200 retail <strong>and</strong> service outletsRetail plays a major part in Munich Airport’s non-aviationbusiness. In 2011, we had a total of 154 stores<strong>and</strong> services outlets <strong>and</strong> 48 hospitality units in the twoterminal buildings <strong>and</strong> the München Airport Center(MAC).Of these, 63 retail <strong>and</strong> service outlets (including 43 inpublic areas) plus 27 restaurants, bars <strong>and</strong> cafés (21 inpublic areas) were located in Terminal 1 <strong>and</strong> the Mün -chen Airport Center. In Terminal 2, most of the retailunits are sited in the gate area. Of the terminal’s 91 re -tail <strong>and</strong> service outlets, 64 are in the sterile area be -hind the security checkpoints, as are 13 of the 21 restaurants<strong>and</strong> cafés.With more than 37,000 square meters of retail <strong>and</strong>hospitality space, we have a consumer offering forair travelers <strong>and</strong> airport visitors that is as appealingas it is extensive. During the course of the year, weadded a number of new stores, remodeled others <strong>and</strong>updated our overall retail mix as part of our ongoing) www.munich-airport.com/shopping51
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Aviation businessq Non-aviation businessp Quality, security <strong>and</strong> safetyefforts to optimize the choice available in the two terminals<strong>and</strong> the MAC (known collectively as our “airportcity”). In the first half of the year particularly, the airport’sretail business showed exceptional growth. Keychanges at Terminal 2 included a new Italian restaurant<strong>and</strong> a steak house, <strong>and</strong> an exp<strong>and</strong>ed Travel Valuestore. Several fashion boutiques <strong>and</strong> a confectioneropened in both terminals.Retail units in 2011Total: 202 (103 airside, 99 l<strong>and</strong>side)Retail/services: 154 (total)Hospitality: 48 (total)“Mount Quattro” in the München Airport Center’sForum, along with a test track <strong>and</strong> an automobileexhibition.From January to the middle of May, more than 10,000sales <strong>and</strong> service employees from Audi branches allover the world came to the airport to attend familiarizationtraining on the new Audi A6. August verymuch belonged to the Audi Q3: Again in the MACForum, the company promoted its br<strong>and</strong> new modelof car by installing a 1,400-square-meter, 9-meter-highmirrored cube, creating an experiential, three-dimensionaldisplay with thrilling special effects <strong>and</strong> the newQ3 at its center on a rotating stage.Hospitality,airside19Hospitality,l<strong>and</strong>side29Retail/services,airside84Retail/services,l<strong>and</strong>side70A world first <strong>and</strong> the OlympicsThe main highlight among the events in 2011 camein August with Surf & Style in the München AirportCenter Forum. Here, Munich Airport presented theworld’s first – <strong>and</strong> largest ever – stationary wave poolat an airport, <strong>and</strong> invited professionals <strong>and</strong> beginnersalike to come <strong>and</strong> surf the wave for free. As part ofthe event, we hosted the first European championshipin stationary wave riding, on August 20-21, whichdrew a crowd of around 20,000 spectators.) www.airport-mediamuc.de) www.munich-airport.com/parkingAdvertising on the terminal façadeMunich Airport offers an extensive range of advertisingspace in its two terminals, the München AirportCenter <strong>and</strong> outdoors. This includes promotional <strong>and</strong>event space, in particular the MAC’s covered Forum,plus a variety of other high-quality advertising options.Besides st<strong>and</strong>ard advertising, such as lightbox signs<strong>and</strong> posters, advertising customers can choose froma range of more specialized forms of advertising, suchas giant posters on building <strong>and</strong> parking garage fa -çades, advertising on baggage carts, <strong>and</strong> gobo adver -tising on floors. We also offer exhibition <strong>and</strong> displayspace for st<strong>and</strong>ing <strong>and</strong> suspended advertising objects.Germany’s largest poster space, the west facade ofTerminal 2, was used again by Audi AG <strong>and</strong> byDeutsche Lufthansa AG to install advertising for peri -ods of several months in 2011. Audi came up with severall<strong>and</strong>mark marketing initiatives at Munich Airportin 2011. To celebrate 30 years of the Quattro system,for example, the automaker set up a 13.5-meter-highOne key focus of Munich Airport’s activities in thefirst half of 2011 was Munich’s bid to hold the WinterOlympics <strong>and</strong> Paralympics in 2018. As a national sponsorof our city’s c<strong>and</strong>idacy for the Games, we ran ajoint advertising initiative with Lufthansa early in theyear, consisting of a giant welcome gate – 16 metershigh, 40 meters wide <strong>and</strong> weighing 200 tons. This wasinstalled on the main approach highway to MunichAirport to highlight the city’s Olympic bid. Ultimately,though, the South Korean city of Pyeongchang wasthe successful c<strong>and</strong>idate.Parking <strong>and</strong> Services: An attractiveportfolioOur Parking <strong>and</strong> Services subdivision is responsiblefor operating the parking facilities at Munich Airport,comprising 14 multistory garages <strong>and</strong> several open-airlots, with a total capacity of more than 34,000 parkingspaces. The subdivision’s customer base includes notjust air travelers <strong>and</strong> airport visitors but also airportbuilding tenants <strong>and</strong> airport employees who park atthe airport.52
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentThe airport gained a further 670 parking spaces inparking garage P20 in 2011, which were completedmidyear after 18 months of construction work. Withthe capacity for more than 7,000 vehicles, P20 nowranks as one of the largest multistory garages anywherein the world.One of the services in our portfolio is convenience<strong>and</strong> secure parking. This is available in P20, a carpark especially popular with frequent fliers, corporatecustomers <strong>and</strong> businesspeople because of thechoice of value-added services there, which includevehicle washing <strong>and</strong> interior cleaning. Valet parking,too, is available: Travelers can h<strong>and</strong> their car over toan airport employee who parks it in a garage of theirchoice, <strong>and</strong> when they arrive on their return journey,the car is driven up for them, ready for collection.A new service, Smart <strong>and</strong> Spot Repair, was launchedin 2011. This enables customers to have minor damageto their car’s paintwork or interior repaired during theirabsence. Especially popular with passengers is theoption of making a firm parking reservation online bycredit card up to six months in advance. When bookingthrough the airport website, travelers can alsoqualify for discounts of up to 48 percent on parkingrates. In 2011, around 6.8 million vehicles used theparking facilities at Munich Airport – 3.0 percent morethan a year earlier.Allresto: Certified organic <strong>and</strong> environment-friendlyAllresto Flughafen München Hotel und GaststättenGmbH is responsible for running approximately 85 percentof the hospitality operations at Munich Airport.These operations are organized in separate restaurant,canteen <strong>and</strong> hotel business units. Restaurantsare Allresto’s core business <strong>and</strong> it runs these itself.They include restaurants serving German, Bavarian,Italian, Argentinian <strong>and</strong> Asian food, plus severalbistros, a fast-food restaurant, cafés <strong>and</strong> a variety ofbars in the airport’s two terminals <strong>and</strong> the municonconference center. The five employee canteens oncampus <strong>and</strong> the Hotel Kempinski are managed bycaterers Eurest Deutschl<strong>and</strong> GmbH <strong>and</strong> hoteliers theKempinski Group.Through its mixed franchise- <strong>and</strong> license-based model<strong>and</strong> its own strong br<strong>and</strong>s, Allresto delivers attractive<strong>and</strong> innovative hospitality to air travelers <strong>and</strong> visitorsat Munich Airport, <strong>and</strong> its high st<strong>and</strong>ards of servicehave earned us top scores for airport dining in Skytraxpassenger surveys, in 2010 <strong>and</strong> again in 2011.Allresto had a mean headcount of 650 employees <strong>and</strong>generated total sales of €89 million in fiscal 2011. Thecompany’s stated aim is to become the most attractive,efficient <strong>and</strong> sustainable hospitality operator inthe transport sector in Europe.53
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Aviation businessq Non-aviation businessq Quality, security <strong>and</strong> safetyIn 2011, eurotrade had a workforce of around 1,000people <strong>and</strong> reported net sales of €172.6 million – arise of 7.5 percent, year on year. This is one of thecompany’s best results ever. To continue building on itsprior successes <strong>and</strong> sustain its performance over thelonger term, eurotrade pursues a strategy based oninnovative goods <strong>and</strong> shop concepts. One approachit has taken is to combine upmarket br<strong>and</strong>-name apparelwith luxury jewelry in the same retail unit. Thecompany has also exp<strong>and</strong>ed its duty free/Travel Valuestores on level 04 in Terminal 2 to offer passengers ashopping experience extraordinaire in a 1,200-squaremeterretail space.) www.eurotrade.orgAllresto sources around 90 percent of its produce withlocal suppliers in Bavaria. The company is certifiedunder the Eco-Management <strong>and</strong> Audit Scheme <strong>and</strong> iscommitted both to conserving resources in the way ith<strong>and</strong>les foodstuffs <strong>and</strong> to advancing sustainability inareas like logistics <strong>and</strong> cleaning. Allresto is also certifiedorganic; this means the company is authorizedunder EU regulations to produce organic foods, whichit serves in the Bistro Organic in Terminal 2.eurotrade: A special shoppingexperienceThe company eurotrade Flughafen München H<strong>and</strong>els-GmbH, a wholly owned Flughafen München GmbHsubsidiary, is a retail operator at Munich Airport. It hasan appealing overall retail mix comprising around70 units, including a number of small hospitality operations,duty free <strong>and</strong> Travel Value outlets, newsagent<strong>and</strong> souvenir shops, <strong>and</strong> a range of stores selling fashion<strong>and</strong> textile goods, luxury-br<strong>and</strong> watches, jewelry<strong>and</strong> accessories. Its aim is to ensure customer satisfaction<strong>and</strong> loyalty by offering premium products fromlocal <strong>and</strong> international br<strong>and</strong>s <strong>and</strong> labels that matchcustomers’ wishes <strong>and</strong> expectations.In 2011, eurotrade opened its first retail unit outsideMunich Airport – a duty free/Travel Value store atFriedrichshafen Airport. In coordination with corporateparent Flughafen München GmbH, it will continue onan expansion course, going forward.MediCare: Expert healthcareFMG subsidiary MediCare Flughafen München MedizinischesZentrum GmbH offers 24-hour healthcareservices to air travelers, visitors, <strong>and</strong> employees atMunich Airport. MediCare also provides a portfolio ofcorporate <strong>and</strong> aviation physician services to MunichAirport <strong>and</strong> organizations on campus, <strong>and</strong> in 2011treated its 100,000th patient.In addition, MediCare runs AirportClinic M, a healthcarecenter of competency that unites a unique, fullserviceapproach to specialized care in such fieldsas orthopedics, gynecology <strong>and</strong> urology with easyaccess for both local <strong>and</strong> international patients. Thecompany is co-owned by Flughafen München GmbHwith 51 percent <strong>and</strong> by MAHM GmbH, a companyoperated by a group of physicians, some of whom arebased at Munich Airport, with 49 percent. MediCarecurrently has a workforce of 66 employees <strong>and</strong> in2011 reported sales of around €6 million.54
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentQuality, security <strong>and</strong> safetyCustomer feedback on quality of serviceThe opinions of our customer base – which includespassengers, visitors, meeters <strong>and</strong> greeters, <strong>and</strong> thepeople who work on campus – are exceptionallyimportant to us. We need to be aware of their needs<strong>and</strong> expectations if we are to succeed in constantlydelivering better service. This is why we have had afeedback system in place for several years for managingthe suggestions <strong>and</strong> complaints we receive fromairport users, <strong>and</strong> for a long time now, we have alsoconducted polls at Munich Airport to track customersatisfaction.Continuous service optimizationMost of the comments we receive are submitted bymeans of letters, online forms, <strong>and</strong> the feedback cardsprovided throughout the airport. We have a centralcomplaints management office which ensures thatall suggestions or complaints received in writing notonly get a quick <strong>and</strong> personal response but actuallyhelp us to improve our st<strong>and</strong>ards of service. We keepa systematic record of all these suggestions; we alsoregularly review the subjects of complaints to identifytrends <strong>and</strong> patterns, <strong>and</strong> we publicize these internally.During 2011 we received <strong>and</strong> processed 1,340 complaintsin total – an extremely small number, consideringthe 38 million passengers who passed through theairport over the course of the year. Criticism centeredmainly on online parking reservations <strong>and</strong> the waitingtimes at baggage claims, plus issues with airlines thatwere beyond our reasonable control. The latter includedflight cancelations <strong>and</strong> delays, poor on-timeperformance <strong>and</strong> poor service from airlines. We for -ward complaints like these to the relevant offices. Com -plaints concerning security screening were down comparedto prior years.One example of our responsiveness to customer com -ments is that we have improved our WiFi service. Followinga growing number of requests, we in January2012 introduced WiFi that is free to users for the first30 minutes.Mystery shopping safeguards quality ofserviceSince 2006, we have used mystery shopping as ameans of quality control. Midyear in 2011, we conducteda series of three rounds of test purchasesat 192 shops, restaurants <strong>and</strong> service outlets, withEnglish-speaking as well as German-speaking shoppers.We scored the retail units on their interior <strong>and</strong> exteriorpresentation, cleanliness, price labeling, the varietyof their products <strong>and</strong>, above all, the knowledgeability<strong>and</strong> courteousness of their customer-facing staff. Withtests like these, we later discuss the results with theunits’ operators. The purpose of mystery shoppingis to ensure that we uphold <strong>and</strong> continue to improvest<strong>and</strong>ards of service at Munich Airport.ASQ 2011: Consistently high qualityscoresAirport Service Quality (ASQ), a benchmarking programoperated by the ) Airports Council International(ACI) in Europe, <strong>and</strong> the annual passengersurveys conducted by London-based independent) Glossary55
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Aviation businessP Non-aviation businessq Quality, security <strong>and</strong> safety) www.munich-airport.com/infogate) www.munich-airport.com/securitymarket researchers Skytrax also provide Munich Air -port with regular information on how air travelersscore our st<strong>and</strong>ards of service.The ASQ rankings, based on how passengers rate air -ports, provide the 190 or so scheme participants world -wide with quarterly data on customer satisfaction. Inall four quarters of 2011, Munich Airport achieved arating of 4.0, which equates to a quality assessmentof “very good.” This boosted us to second place in ourpeer group, which comprises airports with a similarstructure <strong>and</strong> passenger traffic volume. One factor thathelped us to accomplish this was an improvement inpassengers’ satisfaction with the waiting times at se -curity screening <strong>and</strong> passport control.InfoGate on the expansion trackTwo years in development, InfoGate, an informationsystem designed by Flughafen München GmbH, wentinto operation in mid-2011. There are six InfoGate countersin Terminal 1 <strong>and</strong> the München Airport Center. Atthese counters, passengers can push a button to con -tact an information service agent who can give specificanswers to any questions they have <strong>and</strong> explainhow to find their way at the airport. The agent <strong>and</strong> theuser can both see each other at life size on a video link.The system also calculates distances to be covered,estimates how long they will take to cover on foot,<strong>and</strong> tells users how long they can expect to wait atpassport control <strong>and</strong> security screening.Parallel to this, we have rolled out InfoGate Interactive,a self-service system with a touch-screen terminal.There are currently 17 of these freest<strong>and</strong>ing terminalsaround the airport which provide airport visitorswith information on shopping, services, <strong>and</strong> placesto eat <strong>and</strong> drink, as well as flight departure <strong>and</strong> arrivaltimes.The huge interest in the system <strong>and</strong> the positive feedbackfrom the entire travel <strong>and</strong> tourism sector encouragedus to set up a subsidiary, InfoGate InformationSystems GmbH, in early 2012 to market our InfoGateproducts. This exemplifies the emphasis we place atFlughafen München GmbH on innovative products<strong>and</strong> services “made in MUC.”The attractive design of the information terminalswas honored with a Good Design Award 2011. Theseawards are given each year by the Chicago AthenaeumMuseum of Architecture <strong>and</strong> Design, in associationwith the European Centre for Architecture, Art,Design <strong>and</strong> Urban Studies, in recognition of productsthat enrich society <strong>and</strong> people’s lives through gooddesign.Focus on securityAt an international passenger airport like ours, securityis an issue of maximum priority. As the airport’soperator, FMG must ensure the security of its facilityin accordance with EU requirements <strong>and</strong> the provisionsof Section 8 of Germany’s Aviation Security Act,which covers buildings <strong>and</strong> technical aspects as wellas HR <strong>and</strong> organizational measures. Alongside FMG,our subsidiary CAP, which has a workforce of around770 people, is also responsible for the airport’s security.Under Section 9 of the Aviation Security Act, airtransport companies operating at Munich Airport areresponsible for ensuring both their own security <strong>and</strong>the security of their cargo. All of the control measuresare subject to ongoing quality checks. Bavaria’s aviationsecurity authority is in charge of overseeing MunichAirport, whereas the Federal Office of Aviationis responsible for the airlines. In addition, continuous56
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentBodies responsible for aviation security <strong>and</strong> safetyResponsibleTaskingOversightAirport operatorDuty of self-protection as per Section 8of the Aviation Security ActState aviation security authorityAirline companyDuty of self-protection as per Section 9of the Aviation Security ActFederal Office of AviationSecurityAviation security authorityPassenger <strong>and</strong> baggage screening as perSection 5 of the Aviation Security ActFederal police 1Federal policeBorder controls on personsFederal Ministry of the InteriorCustomsBorder controls on internationalmovements of goodsFederal Ministry of the InteriorSafetyAir traffic controlMonitoring of air space,coordination of flightsFederal Ministry of Transport,Building <strong>and</strong> Urban Development1In Bavaria: State aviation security authoritynational <strong>and</strong> EU quality checks are carried out, <strong>and</strong> weperform our own in-house checks as part of our internalsecurity quality management system.Continuous onward trainingBefore entering the gate areas, passengers <strong>and</strong> theirh<strong>and</strong> luggage are screened by employees of Sicherheitsgesellschaftam Flughafen München mbH (SGM).This screening is conducted on behalf of Bavaria’shighest aviation security authority, the South BavarianOffice of Aviation. To make sure that checks are carriedout consistently <strong>and</strong> to the required security <strong>and</strong>quality st<strong>and</strong>ards, each of the 1,200 or more aviationsecurity officers working at the airport completesaround 40 hours of onward training every year. All trainingfor security personnel is delivered in accordancewith in-house as well as official requirements, <strong>and</strong>covers statutory regulations on dealing with persons<strong>and</strong> personal property.Two more bodies tasked with aviation security are thefederal police <strong>and</strong> customs. The police are responsiblefor inbound <strong>and</strong> outbound passport control proceduresplus a variety of security tasks, including protectingat-risk flights <strong>and</strong> providing armed protection at pas -senger screening points in the airport’s terminals. Customscarries out import <strong>and</strong> export inspections on thegoods people are carrying.A system to optimize safetyJust like general airport safety <strong>and</strong> security, the safeoperation <strong>and</strong> h<strong>and</strong>ling of aircraft in line with statutoryaviation regulations has utmost priority at Munich Air -port. Given the steady, ongoing growth in air traffic,we do our utmost to prevent accidents, avoid dangeroussituations, <strong>and</strong> minimize the potential impacts inthe event that something does happen. We therefore57
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Aviation businessP Non-aviation businessq Quality, security <strong>and</strong> safety) Glossary) Glossaryoperate a ) safety management system (SMS) incompliance with the requirements laid out in Annex14 of the ) ICAO’s Convention on InternationalCivil Aviation <strong>and</strong> Section 45b of Germany’s AviationCertification <strong>and</strong> Licensing Regulations. The SMS iscomprehensive in that it covers the whole airport. Thismeans that we are also responsible for supervisingall of the businesses, frontline services <strong>and</strong> other or -ganizations involved in safety-related tasks at the air -port. Organizationally, responsibility for the system resideswith traffic management in our Aviation division.The airport’s safety team, comprising a safety manager<strong>and</strong> experts from various areas of airport operations,acts as an interface to airline companies, air traffic con -trol, government aviation agencies, <strong>and</strong> their respectivesafety management systems. The team’s coretasks include the following: collaborating on approvalprocedures <strong>and</strong> airport inspections as required underaviation law; conducting airport-wide safety audits;investigating accidents, loss events, <strong>and</strong> safety-relevantoccurrences; <strong>and</strong> liaising with aviation agencieson issues of aviation operations safety.A new crisis management systemIn 2011, we completed a project to refine <strong>and</strong> deploya site-wide crisis management system for FlughafenMünchen GmbH. We conducted this in line with guidanceon critical infrastructures issued by the FederalMinistry of the Interior. The term “crisis” describesa situation that poses a threat to our airport’s existence– a situation that cannot be managed effectivelythrough our regular organizational structure <strong>and</strong> processes,<strong>and</strong> thus calls for a specialized organizationalunit, a crisis team.Crisis management not only involves taking steps tocontrol <strong>and</strong> overcome a crisis (including issuing alerts,rapidly assessing the situation, etc.), it is also abouthaving a crisis management office in place, staffed bya specialist team that is responsible for safeguarding<strong>and</strong> refining the organization’s crisis readiness.During the crisis management project, we appointedeight crisis team supervisors, who are on call aroundthe clock according to a duty roster, plus seven situationassessors, whose role is to assess the crisispotential of emerging situations <strong>and</strong> to work with crisis58
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentteam supervisors to initiate action aimed at managingsituations as they develop. We also took steps to consolidate<strong>and</strong> optimize communications <strong>and</strong> networkingbetween key stakeholders on site, such as thepolice, the Airport Operators Committee in Munich,<strong>and</strong> government ministries.The airport fire service: On site in 180secondsTo satisfy our rigorous safety st<strong>and</strong>ards at Munich Airport, we have two fire stations on campus: the southfire station is responsible for firefighting on the southrunway, in Terminal 1’s ramp areas, <strong>and</strong> in the cargo<strong>and</strong> maintenance areas; the north fire station is respon -sible for the north runway, Terminal 2’s ramp areas, thegeneral aviation terminal <strong>and</strong> the helipad area. The twofire stations work together to fight building fires.Munich Airport’s fire service meets International CivilAviation Organization guidelines that require crews tobe able to deploy to any point on the runways <strong>and</strong> beginfighting a fire within 180 seconds of being calledout. The same guidelines also stipulate the minimumnumber of firefighting vehicles, minimum quantitiesof quenching agent, <strong>and</strong> the quenching-agent flowrate. To further improve the airport fire crews’ equipment,the service received two new fire trucks in 2011.Powered by 1,000 horsepower engines, these can acceleratefrom zero to 80km/h in 20 seconds, in spiteof weighing 43 metric tons. The fire service also tookdelivery of two additional fire trucks in 2012.To guard against building fires, all of the buildings onthe airport campus are equipped with automatic <strong>and</strong>manual fire alarms – some 52,000 in total. If an alarmis triggered, the fire service’s comm<strong>and</strong> <strong>and</strong> controlcenter can identify where the detector is located.When the alarm is raised, it takes less than 40 secondsfor the first fire trucks to leave the stations.The comm<strong>and</strong> <strong>and</strong> control center also has hotlines tofire departments, emergency call centers, <strong>and</strong> policeheadquarters in the airport region so that the airport’sfire service can request outside support in the eventof a major incident or respond to calls for assistancefrom local emergency responders outside the airportif the need arises.Fire service personnel complete around 150 hoursof classroom <strong>and</strong> field training each year to hone <strong>and</strong>extend their skills at operating extinguishing systems,h<strong>and</strong>ling hazardous materials, working while wearingbreathing apparatus, giving first aid, <strong>and</strong> carrying outtechnical rescue operations in connection with roadtraffic accidents. The fire service has its own trainingground <strong>and</strong> basin where crews can practice controllingmajor fires. Residue from the kerosene used tocreate practice fires is collected in underground traps<strong>and</strong> then disposed of safely.Consulting for major airportsMunich Airport’s fire service operates a TÜV Südaccreditedquality management system <strong>and</strong> nowconsults not just for other major commercial airportsin <strong>and</strong> outside Germany, but also for corporations’plant fire departments.In 2011, young people were able to apply for a placeon a new vocational training course as plant firefighters.The first year of the three-year program begins inSeptember 2012. In addition, airport fire service paramedics<strong>and</strong> assistant paramedics have been certifiedas trainers <strong>and</strong> are now officially qualified to teachfirst aid.The airport fire service responded to 3,582 calloutsin 2011, of which 857 were false alarms. The calloutsincluded 1,831 technical support operations, 574 safetymonitoring operations, 118 fires, <strong>and</strong> 202 firstresponseoperations to provide first aid prior to thearrival of ambulance services. At yearend, the servicehad a total workforce of 193. During 2011, around11,000 visitors took part in tours to learn about thehighly varied work of the fire service.) www.munich-airport.com/fire-department59
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Aviation businessP Non-aviation businessq Quality, security <strong>and</strong> safety) http://relaunch.davvl.deBird control: Guarding against bird strikeCollisions between aircraft <strong>and</strong> animals – birds in particular– pose a threat to aviation safety. We engage ina variety of initiatives at Munich Airport to guard a-gainst this kind of event <strong>and</strong> to ensure the safety <strong>and</strong>continuity of airport operations. Bird control is carriedout by specially trained Flughafen München GmbHemployees who are on site throughout the airport’soperating hours <strong>and</strong> remain in constant contact withair traffic control. They use various methods to driveoff animals that pose a potential threat to safety. Often,it suffices if they simply drive up in a vehicle <strong>and</strong> getout or sound the horn. Patrols also use pyro-acousticsto startle animals. This involves firing flares that makea bang, whistle or flash after a delay.Sophisticated biotope managementUnlike many other international airports, Munich doesa lot more to prevent bird strike than just startle thebirds. We expend considerable effort on creating <strong>and</strong>maintaining biotopes that blend in with the local l<strong>and</strong>scapeyet are carefully managed so as not to attract tothe airport <strong>and</strong> its immediate surrounding area thosekinds of birds that pose a threat to aviation (for example,species that are heavy or have a tendency toswarm or are active flyers).Two-thirds of the airport site is covered with greenery,which requires special care <strong>and</strong> maintenance in connectionwith bird strike prevention. Given that shortgrass would tend to attract bird species dangerousto aviation, the grassy areas around the runways aremown as seldom as possible. Flocking species likestarlings <strong>and</strong> gulls are generally not attracted to thelong grass because they lose sight of each other, <strong>and</strong>larger, heavier birds like buzzards <strong>and</strong> herons avoid itbecause of the difficulty of finding prey. This not onlyhelps to improve aviation safety, it is also importantfrom a conservation point of view as the l<strong>and</strong>scapehas a far greater environmental value than uniform,intensively farmed arable or pasturel<strong>and</strong>. In an effortnot to attract heavy waterfowl, we have avoided crea -ting open expanses of water as far as possible; wehave installed wires over groundwater drainageditches; <strong>and</strong> we have drained areas where surfacewater tended to accumulate. The airport’s perimeterfence keeps out large mammals like deer <strong>and</strong> wildboar, giving other species a chance to thrive.As a further safeguard against bird strike, we also haveagreements in place that put certain constraints ontenant farmers who work FMG-owned l<strong>and</strong>. For in -stance, under the terms of these agreements, farmersare not permitted to use liquid fertilizer or sludge onthe fields within 600 meters of the airport perimeter.FMG works closely with organizations on the questionof bird strike prevention, in particular with airlinecompanies, German air traffic control, regional <strong>and</strong>national government agencies, <strong>and</strong> the German BirdStrike Committee (DAVVL). In addition, the airportoperating company has public-agency status <strong>and</strong> thusa say in connection with bird strike risk when localauthorities approve l<strong>and</strong> use in areas outside the airportperimeter.Low bird strike rate in MunichThe likelihood of a bird strike event is lower at Munichthan at most other commercial airports. The regionalgovernment of Upper Bavaria noted in its zoning deci -sion for Munich Airport’s third runway in 2011: “MunichAirport has mean bird strike rates of 1.29 in itsinner zone <strong>and</strong> 0.72 in its outer zone, compared tomean inner <strong>and</strong> outer-zone rates Germany-wide of2.56 <strong>and</strong> 1.18.” The rate indicates the number of birdstrike events per 10,000 aircraft movements.High IT security st<strong>and</strong>ardsFlughafen München GmbH has released binding informationsecurity guidelines governing the treatmentof information <strong>and</strong> the use of information technology,both within its own organization <strong>and</strong> at its affiliates. The60
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentguidelines detail areas of responsibility <strong>and</strong> containfundamental rules designed to protect information.The FMG Group has a chief information security officerwhose role is to manage information security acrossthe whole of the organization. He reports directly toFMG’s executive management <strong>and</strong> is supported byother information security officers in the parent companyitself <strong>and</strong> in its various subsidiaries.Key information security tasks include technical, organizational<strong>and</strong> employee-related audits, the creationof guidelines (on using IT systems <strong>and</strong> on contractingexternal service businesses, for example), risk management,technical measures to harden computer security,<strong>and</strong> initiatives to raise employees’ awarenessof the importance of IT security.New FMG systems are produced in accordance withMAP, an in-house project management methodology,<strong>and</strong> MAPIT, a supplement that applies specifically toIT systems. This unified approach to project managementmeans that steps are taken during the developmentphase <strong>and</strong> thereafter to ensure that systemssatisfy FMG quality, security <strong>and</strong> reliability requirements.The safe h<strong>and</strong>ling of information stored on IT systems(in particular, customer data) is covered by in-houseinformation classification <strong>and</strong> h<strong>and</strong>ling guidelines.These detail specific requirements on storing informationon mobile devices, sending information by e-mail<strong>and</strong> deleting data securely.Our main information security management focuses in2011 were on conducting a comprehensive emergencyexercise, auditing technical solutions (a PA system,for instance) <strong>and</strong> HR processes. We also held trainingprograms for project supervisors on the informationsecurity aspects of projects, we stepped up trainingfor new employees, <strong>and</strong> we rolled out various technicalIT security safeguards, including an updated firewallinfrastructure.) www.munich-airport.com/consulting61
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Aviation businessP Non-aviation businessq Quality, security <strong>and</strong> safetyMeasurable quality objectives withISO 20000FMG has its own IT services arm, the Information Tech -nology division. Besides planning, deploying <strong>and</strong> operatingthe airport’s IT systems, the division providesservices for information systems, office systems <strong>and</strong>communications equipment (for LANs, WLANs, fixed<strong>and</strong> mobile telephony, <strong>and</strong> radio, for example), as wellas consulting <strong>and</strong> advisory services.The division, which has 190 employees <strong>and</strong> looksafter around 520 customers, is also responsible for62
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentproviding the requisite IT infrastructure. Since 2006,the division has been accredited to the ISO 20000IT service management st<strong>and</strong>ard <strong>and</strong> has since successfullyre-certified annually – most recently in 2011.ISO 20000 establishes a measurable quality st<strong>and</strong>ardfor the delivery of managed IT services. Key processesinclude incident management, change management,availability <strong>and</strong> continuity management, configurationmanagement, <strong>and</strong> information security management.To safeguard the availability of critical systems thatare essential to airport operations, such as passengerinformation systems <strong>and</strong> dispatching systems forthe airport aprons <strong>and</strong> terminals, our IT division notonly employs ISO 20000-compliant processes, it alsodraws on a range of technical means <strong>and</strong> solutions.Examples include state-of-the-art security measuresto protect the airport’s networks, comprehensivesys tem management with a high level of operatingprocess integration, <strong>and</strong> a pair of data centers, at sep -arate locations, which switch over system componentsaccording to defined cycles.The division applies key performance indicators togauge the effectiveness of measures at the process<strong>and</strong> technical system levels. It also publishes detailedmonthly reports on system availability <strong>and</strong> capacityreserves that help to identify emerging problems atan early stage <strong>and</strong> enable timely intervention.IT process optimizationThe ISO 20000 IT service management st<strong>and</strong>ard plac -es considerable emphasis on continuous improvement,as this ensures that procedures are adapted <strong>and</strong> optimizedin step with changing conditions.For instance, our IT service management (ITSM) toolwas identified as needing improvement. This is a soft -ware program for coordinating <strong>and</strong> supporting IT di vi -sion job processes in areas like the supply or troubleshootingof user equipment. It has now been replacedby more advanced, more powerful software. The newsoftware has enabled us to automate supply <strong>and</strong> otherprocesses to a greater extent <strong>and</strong> so achieve valuableefficiency gains. These supply processes includeequipping work points with a desktop PC, notebookPC or phone, installing a range of software on a desktopor notebook PC, providing wireless systems forflight-related processes (e.g., baggage h<strong>and</strong>ling), <strong>and</strong>enabling access to CCTV systems.The software allows us not only to respond faster tocustomer inquiries, but also to reduce the labor costper process cycle, to improve the quality of IT servicedelivery <strong>and</strong> service data, <strong>and</strong> to simplify the processof invoicing customers. Although still being tested, thenew ITSM tool will be rolled out during the course of2012.An IT emergency exercise designed to practice a complexsystem failure scenario <strong>and</strong> assess the qualityof documentation <strong>and</strong> processes revealed that ouremergency procedures functioned smoothly <strong>and</strong> ourstaff had the skills <strong>and</strong> training to respond precisely<strong>and</strong> efficiently. Minor flaws were found in the documentation,but these were soon rectified.AirSide: The airport at a glanceAirSide is an abbreviation for Airport Status IndicationEquipment, a system designed <strong>and</strong> developed by ourInformation Technology division to collate <strong>and</strong> show acomprehensive overview of information on air trafficon a smart board display. With AirSide, users can track<strong>and</strong> log key events such as aircraft <strong>and</strong> vehicle movements,aircraft h<strong>and</strong>ling operations, refueling, thecurrent runway status, construction work, emergencies,snow <strong>and</strong> ice clearing operations, <strong>and</strong> operatingarea closures. AirSide’s main users are FMG trafficmanagement staff, who work with it around the clockas a means of rapidly assessing the overall situationat the airport. Because AirSide can be configured tosuit different user groups’ needs, it is now also in operationwith the airport fire service, air traffic control,<strong>and</strong> public bodies like the police, customs, the SouthBavarian Office of Aviation, <strong>and</strong> the regional governmentof Upper Bavaria.63
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityp Stakeholder dialoguep Regional growth partnershipsp Economic valuep Community engagementp55%FMG awards more thanhalf its procurement byvalue to businesses inBavaria.74clubsQreceive fundingfrom FMG topromote youth sport.Flughafen MünchenGmbH engagesregularly with keystakeholder groups inan open dialogue.64
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentCommunication <strong>and</strong> socialresponsibility66 Stakeholder dialogue69 Regional growth partnerships72 Economic value76 Community engagement65
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Stakeholder dialoguep Regional growth partnershipsp Economic valuep Community engagementStakeholder dialogue) Glossary) Our policy statementsare available here:www.munich-airport.com/publications) Glossary) Glossary) www.munich-airport.com/stakeholdersEngaging with airport stakeholdersFlughafen München GmbH regularly engages with itskey ) stakeholder groups through various means, includingcontinuous passenger <strong>and</strong> employee surveys<strong>and</strong> an open exchange of opinion, based on mutualtrust, with airline companies <strong>and</strong> partner businesses.We also work closely with neighboring communities<strong>and</strong> partner organizations in our immediate local area,as their support is crucial to our current <strong>and</strong> future suc -cess as a business organization. And through our regionalliaison office, we maintain close ties with localcommunities, policymakers <strong>and</strong> citizens’ groups.The forms of dialogue we engaged in with each of ourstakeholder groups are described on the ) Internet.Advocacy at a range of levelsOur office of political affairs liaises between the com -pany, policymakers <strong>and</strong> administrations. Its role is torepresent the FMG Group’s interests in dealings withEU bodies, the German federal government <strong>and</strong> parliament,the Bavarian state government <strong>and</strong> parliament,<strong>and</strong> the city council of Bavaria’s state capital, Munich.Its remit also includes working with aviation industrybodies <strong>and</strong> organizations.The office of political affairs ensures that informationis shared at different levels in an effort to promoteawareness of issues that concern the FMG Group.It not only maintains constant contact with variousbodies <strong>and</strong> organizations, it also holds regular events,including parliamentary evenings in Berlin <strong>and</strong> roundtablediscussion in Brussels. In addition, FMG regularlypublishes ) policy statements that present itsofficial stance on current aviation issues.By collaborating closely with industry associations,including the ) German Airports Association (ADV),the Federal Association of the German Air TransportIndustry <strong>and</strong> the ) Airports Council International(ACI Europe), we have access to well-founded informationon key aviation topics <strong>and</strong>, at the same time,are assured that our industry’s interests are well re -presented collectively.In April 2006, we took the step of setting up a liaisonoffice in Brussels with a view to better representingour interests as an airport at the European level <strong>and</strong>to improving links with key officials <strong>and</strong> decisionmakersin EU bodies. However, Flughafen MünchenGmbH makes no financial contributions of any kind topolitical parties, policymakers or associated organizations.Analysis of stakeholder groupsBecause workable, future-proof solutions <strong>and</strong> sustainabledevelopment can only be accomplished througha constant dialogue with all segments of society, weengage in a process of continuous communicationwith our stakeholders, not just inside our organizationbut at the local, regional, national <strong>and</strong> internationallevels as well.Key stakeholder groupsMedia Passengers <strong>and</strong> visitors Airlines <strong>and</strong> the aviation industryGovernment ministries <strong>and</strong> agencies Munich Airport EmployeesPolicymakers <strong>and</strong> industry associations Business partners Airport region66
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentWe conducted our first detailed analysis of our stakeholder base in 2008, mainly through structured inter -views with in-house contacts representing each targetgroup. As in prior years, the results of this analysisagain formed the basis for selecting stakeholdergroups for this year’s report. These results are reviewedon a regular basis.Dialogue with the mediaFMG’s stakeholder groups also include the media <strong>and</strong>the public at large, in our home region <strong>and</strong> beyond. Weengage with these groups through events <strong>and</strong> regionalfairs, visitor support services, internet <strong>and</strong> intranetsites, <strong>and</strong> newspapers <strong>and</strong> other publications. Thepurpose of our combined corporate communicationsactivities is to foster a better underst<strong>and</strong>ing of ouractions <strong>and</strong> policies as an organization <strong>and</strong> to achievecredibility <strong>and</strong> trust among the general public.Corporate Communications is both the voice <strong>and</strong> theears of FMG. The division engages in strategic communication<strong>and</strong> reputation management designed tomake employees, the media <strong>and</strong> the public at largeaware of the company’s intentions <strong>and</strong> interests <strong>and</strong>,at the same time, inform the company about relevantopinions, sentiments <strong>and</strong> trends in society.As part of its media relations work, Corporate Communicationsregularly organizes events like our annualpress conference as well as media events on a widerange of subjects, <strong>and</strong> the division’s press office regularlypublishes news releases <strong>and</strong> photographs oncurrent events <strong>and</strong> developments at Munich Airport.FMG regards this as work. FMG trusts its employeesto confine themselves to company- <strong>and</strong> work-relatedactivities online during office hours <strong>and</strong> to use theirknowledge <strong>and</strong> expertise to make a positive contributionto discussions conducted on the Internet.Critical comments <strong>and</strong> inaccurate assertions are partof any active debate or discussion on the Internet,but the medium also allows us to rectify <strong>and</strong> refutesuch comments <strong>and</strong> assertions. The company hasa dedicated social media team, part of CorporateCommunications, which takes an active part in onlinediscussions <strong>and</strong> can intervene if necessary to correctfalse claims or posts. The team additionally uses socialmedia channels to inform users about everythingfrom new aviation routes <strong>and</strong> retail offerings to specialevents taking place at the airport. These channelsare also of importance when it comes to recruitingnew employees.Information <strong>and</strong> entertainment at oursustainability fairOn July 8–10, 2011, we hosted a sustainability fair,bannered “Working today for tomorrow,” at MunichAirport. Held in the München Airport Center, the fairwas organized to inform people about FMG’s rangeof initiatives aimed at protecting the environment,ensuring employee welfare, addressing local people’sinterests, <strong>and</strong> safeguarding the airport’s future.Presence in social mediaWith the growing popularity <strong>and</strong> importance of socialnetworks, Flughafen München GmbH has embracednew communication channels like ) Facebook <strong>and</strong>) Twitter. Users on these new platforms commenton <strong>and</strong> rate airport-specific topics as well as expansionprojects like the construction of the airport’sthird runway. FMG expressly allows employees toparticipate in exchanges through social media, fromcompany computers <strong>and</strong> during office hours.) www.facebook.de/flughafenmuenchen) www.twitter.com/MUC_Airport_ENIn social networks like Facebook, Xing or Twitter, differentiatingbetween business <strong>and</strong> private communicationsis difficult. Nonetheless, if employees log intotheir private account from their PC at work <strong>and</strong> blog,67
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityq Stakeholder dialogueq Regional growth partnershipsp Economic valuep Community engagementInfratest conducted a representative opinion surveyon behalf of Flughafen München GmbH’s regionalliaison office in the fall of 2010. Having already commissioneda similar poll in 2003, we were able to usethe results of the new survey to assess any changesthat had emerged over the last seven years.The 2010 survey centered primarily on the Erding<strong>and</strong> Freising districts, both adjacent to the airport,plus a number of communities in the administrativedistricts of L<strong>and</strong>s hut, Dachau, Munich <strong>and</strong> Ebersberg.In total, 2,073 people were polled by phone in38 communities.) Glossary) Glossary) See also the sectiontitled “L<strong>and</strong>side accessmaster plan” on p. 42<strong>and</strong> the consolidatedmanagement report onp. 126) You can find the report“Munich Airport as seenby its neighbors” atwww.munich-airport.com/publicationsThe fair featured a large number of st<strong>and</strong>s where air -port visitors <strong>and</strong> employees could find out more aboutMunich Airport’s sustainability vision <strong>and</strong> programs.Exhibitors at the event included FMG units responsiblefor environmental protection, training <strong>and</strong> con -struction, our regional liaison office, <strong>and</strong> our subsidiaryAllresto, which manages food operations at theairport. Other organizations on ) campus, too, usedthe event to present their sustainability strategies<strong>and</strong> activities, including Deutsche Lufthansa AG, Bau -haus Luftfahrt <strong>and</strong> SCA Hygiene Products. Also exhibitingwas aircraft engine maker MTU, which showednew propulsion technologies <strong>and</strong> visionary conceptsfor the future of aviation.Other attractions included a br<strong>and</strong> new airport firetruck, a specially built track on which visitors couldride electric-powered bicycles, <strong>and</strong> an extensive <strong>and</strong>varied supporting program specially for younger visitors.We also took the event as an opportunity to officiallyinaugurate a new cycle path connecting the two terminals<strong>and</strong> the München Airport Center with the restof the airport’s cycle route network.Our neighbors’ perception of the airportTo gain a better picture of what people who live in ourregion think of the airport, market researchers TNSThe results of the survey not only reaffirmed the posi -tive findings of 2003, they were even better in severalinstances. Ninety percent of respondents stated thatthey enjoyed living in the region, <strong>and</strong> the main reasoncited was the quality of life. Around 84 percent viewedthe presence of the airport as beneficial for the regionas a whole, <strong>and</strong> almost 80 percent stated they foundit positive for them personally. Ninety percent were ofthe opinion that the airport’s ) hub traffic brings benefitsfor Bavaria’s economy, <strong>and</strong> 72 percent thoughtthat the hub traffic benefited the region. The surveyalso showed that the local population makes active<strong>and</strong> frequent use of the airport, both as air travelers<strong>and</strong> as visitors, <strong>and</strong> this underscores the degree ofacceptance the airport has found within its surroundingregion.On a less positive note, the poll also revealed thatrespondents thought significant action was neededto improve public transport access to the airport fromthe places where they lived. Communities in the Erdingadministrative district in particular were keen tosee improvements to ) public mass transit servicesto the airport. In several of these communities, thedissatisfaction is likely due to delays to the completionof the Erding circular rail link, which will requirethe construction of a new two-track rail line betweenthe town of Erding <strong>and</strong> Munich Airport.The surveys in 2003 <strong>and</strong> 2010 have delivered findings<strong>and</strong> insights that are valuable for our regional policy<strong>and</strong> give us a solid foundation for future assessments<strong>and</strong> detailed surveys. We have made the results ofthe surveys available to local communities.68
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentRegional growth partnershipsThe Communities Council: A forum fordialogueFor Flughafen München GmbH, an open <strong>and</strong> constructiveexchange with the airport’s local region is excep -tionally valuable. The Communities Council, formedin September 2005 to accompany the planning processfor the expansion of Munich Airport, plays an importantrole in this context by fostering productive dialogue<strong>and</strong> by providing the airport <strong>and</strong> its local communitieswith a forum for information sharing <strong>and</strong> communication.The Council is supplied with timely <strong>and</strong> currentinformation on the planning progress at its meetings;it also acts as a mouthpiece for the region, voicing localconcerns, offering recommendations <strong>and</strong> suggestions,<strong>and</strong> helping to achieve consensus on solutionsto problems. The Council has around 40 members,including people representing local towns <strong>and</strong> communities,administrative districts, the business community<strong>and</strong> labor unions, as well as employees fromDeutsche Lufthansa AG, Deutsche FlugsicherungGmbH <strong>and</strong> Flughafen München GmbH, who representthe aviation sector. The Council is chaired by EddaHuther, a former president of the Constitutional Courtof Bavaria.A regional fund for infrastructure <strong>and</strong>special projectsTogether with the Communities Council, FlughafenMünchen GmbH’s shareholders in 2008 elected toset up a regional fund to offset impacts caused bythe construction of the airport’s third runway. Under€100 million regional fund€50 millionfor otherpublic infrastructure€50 millionfor publicroadsFreisingdistrict€26.6 millionErdingdistrict€23.4 millioncurrent plans, the fund’s resources of €100 millionare to be allocated over a period of between 10 <strong>and</strong>15 years, primarily to local infrastructure projects.Payouts from the fund are, however, contingent uponthe start of the runway construction work. Fifty millioneuros are to go to local highway constructionprojects; the other half has been earmarked for localcommunity infrastructure development, compensationin instances of hardship, <strong>and</strong> special projects.Support for transport infrastructureprojectsAt present, money from the fund has been assignedto two community road construction projects, in theErding district (€23.4 million) <strong>and</strong> the Freising district(€26.6 million). The funding will go toward Erding’snorth bypass (capped at €13.5 million) <strong>and</strong> to Freising’swest expressway. Funding has now also been approvedfor the construction of the Moosburg west ex -pressway (up to a maximum of €4 million) <strong>and</strong> a roadbetween Berglern <strong>and</strong> Eitting in the Erding district. Cur -rently, €5 million apiece have been made available tothe Erding north bypass <strong>and</strong> the Freising west ex press -way projects; all other funding is on hold until workhas begun on building the third runway. To date, Erdingdistrict council has drawn down around €500,000in funding to cover planning work for the town’s northbypass. Freising, too, has drawn down €500,000, forthe purchase of l<strong>and</strong> in preparation for the constructionof the town’s west expressway.A bridge between the airport <strong>and</strong> itsneighborsThe goal of our regional liaison office is to establishthe airport as an integral part of its home region <strong>and</strong>as a “regular” neighbor. To accomplish this, our regionalliaison officer <strong>and</strong> his team have been engagedsince 2002 in efforts to network systematically withthe surrounding region at various levels. The regionalliaison office’s remit is to operate as a coordinationcenter or bridge between the airport <strong>and</strong> the region.It carries Flughafen München GmbH’s messages outinto the region <strong>and</strong> feeds neighbors’ concerns back tothe airport.) www.munich-airport.com/regional-fund69
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Stakeholder dialogueq Regional growth partnershipsp Economic valuep Community engagement) www.airfolgsregion.deOur regional marketing initiativeFMG plays an active role in, <strong>and</strong> co-funds, Airfolgs-Region Erding-Freising, a joint working group for re -gional marketing, set up in 2005. The group’s purposeis to encourage collaboration at the community<strong>and</strong> administrative district levels <strong>and</strong> to promote ourre gion’s unique qualities as a center of tourism <strong>and</strong>business through professional marketing.As in past years, the working group exhibited at a num -ber of national <strong>and</strong> regional travel <strong>and</strong> tourism fairsduring 2011. One of the year’s highpoints was the completionof the group’s cycle routes project, launchedin 2009: Eight themed routes across the region, coveringa total distance of 275 kilometers, have now beenmapped <strong>and</strong> marked for local cyclists <strong>and</strong> tourists.The joint working group re-focused its efforts to pro -mote business in the region in 2011. Initiatives includedholding its first one-day event for business owners <strong>and</strong>launching an energy efficiency project for local companies.The latter offers business owners the chanceto obtain advice on measures that they can introduceto improve their companies’ energy efficiency.Marketing business parks <strong>and</strong> real estateThe Munich Airport Area (MAA) working group, setup by the airport’s nearby municipalities of Hallbergmoos,Oberding <strong>and</strong> Marzling in association withFlughafen München GmbH, began operating in 2010.Its purpose is to systematically promote <strong>and</strong> coordinatethe development <strong>and</strong> marketing of members’business parks <strong>and</strong> real-estate projects. The MAAconducts targeted marketing initiatives <strong>and</strong> attendsall key national <strong>and</strong> international trade shows in orderto engage with potential investors, developers <strong>and</strong>real-estate project developers <strong>and</strong> businesses.One key selling point for the MAA is the region’s ac -cess to world markets through Munich Airport. This<strong>and</strong> the close links between the business <strong>and</strong> researchcommunities in business <strong>and</strong> technology parks nearthe airport are two important factors that are helpingto exp<strong>and</strong> <strong>and</strong> strengthen the region’s role as a centerof high technology.The Munich Airport Area working group offers potentialinvestors flexible <strong>and</strong> unbureaucratic guidance <strong>and</strong>support during <strong>and</strong> after the process of locating to thearea. The MAA’s target groups are organizations insectors like air logistics, aerospace, <strong>and</strong> information<strong>and</strong> communication technology. Potential customersalso include businesses in international serviceindustries, clean technology <strong>and</strong> medical engineering.Regional business linksMunich Airport has purchasing <strong>and</strong> supply relationships,many of them long-st<strong>and</strong>ing, with a large num -ber of companies in its surrounding region, rangingfrom trades, artisans <strong>and</strong> service businesses to growersof agricultural produce.In our procedures for awarding contracts <strong>and</strong> tenders,we actively seek to include local companies in the se -lection process as far as possible, provided the ordervalue is below the threshold set for EU-wide tenders.That said, companies in our region also take part inour EU-wide tenders. Based on contract value, around32 percent of the orders placed by Flughafen Mün -70
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentPurchasing <strong>and</strong> supply relationships(FMG excl. subsidiaries)Regional spend in millions of euros4.7 5.6 5.1L<strong>and</strong>shutdistrict15.2 15.4 13.619.3 22.1 19.5FreisingdistrictErdingdistrict61.856.952.2City ofMunich100 10091.42009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011Purchasing <strong>and</strong> supply relationships(FMG excl. subsidiaries)Overall <strong>and</strong> regional distribution of spendForeign countries2%Germanyexcl. Bavaria43%Dist. = districtBavaria55%CombinedtotalBavaria excl.ED, FS, LA <strong>and</strong>city of Munich23%City of Munich20%Erding dist. 6%Freising dist. 4%L<strong>and</strong>shut dist. 2%chen GmbH (excluding its subsidiaries) currently go tolocal businesses in the Freising, Erding <strong>and</strong> L<strong>and</strong>shutadministrative districts <strong>and</strong> the city of Munich.In 2011, our subsidiary Allresto Flughafen MünchenHotel und Gaststätten GmbH sourced around 90 per -cent of its foodstuff purchases worth a total €13.1 mil -lion in Bavaria, including around €8 million in theEr ding, Freising <strong>and</strong> L<strong>and</strong>shut districts. This procurementvolume encompassed the production, processing<strong>and</strong> sale of goods.Cornerstone principles of Allresto’s procurement policyare to primarily purchase <strong>and</strong> process regional <strong>and</strong>seasonal products on competitive terms (i.e., at theright quality <strong>and</strong> price), to ensure access <strong>and</strong> deliverydistances are short, <strong>and</strong> to promote sustainability.This policy ensures a circular flow of income withinthe region’s agriculture, processing industries <strong>and</strong>commerce while at the same time reducing transportemissions.Legal compliance in procurementWhen calling for bids, we take steps to ensure com -pliance with national <strong>and</strong> international laws <strong>and</strong> agree -ments. This requirement is reaffirmed in legally bindingform when we conclude contracts with suppliers.Around 93 percent of our supplier businesses arebased in Germany. Of these, 59 percent are in Bavaria.Just 2 percent of our suppliers are registered businessesoutside the European Union.The structure of our supplier base ensures that EUlaws apply, providing a solid safeguard against humanrights violations <strong>and</strong> child labor. In the case of highriskproduct groups where the likelihood of child laboris significant, we take appropriate steps to ensure thatnone is involved. Manufacturers of high-risk productsin areas where businesses are known to use child laborare required to present certificates from independentorganizations confirming that they do not.Evaluation of suppliersSince 2004, Flughafen München GmbH has conductedannual evaluations of around 150 suppliers as partof its supplier management process. Suppliers arescored on such criteria as the quality of their productsor work, their reliability, their quality of service <strong>and</strong>their pricing. We also verify whether these companiesare certified to specific quality <strong>and</strong> environmentalst<strong>and</strong>ards. In some instances, we conduct auditsto identify possible shortcomings <strong>and</strong> encouragesuppliers to remediate any flaws we find.71
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Stakeholder dialogueP Regional growth partnershipsq Economic valuep Community engagementEconomic value) www.munich-airport.com/economyProtecting our location’s futureMunich Airport regularly receives outst<strong>and</strong>ing approvalscores from air travelers. Two key success factorsbehind these ratings are our popular appeal <strong>and</strong> ourconsistent <strong>and</strong> exceptional efficiency. Our airport alsobenefits significantly from its geographic location inthe center of Europe, a factor that has become all themore important with the expansion of the EuropeanUnion. For Bavaria, Germany’s most popular touristdestination <strong>and</strong> a federal state with a highly exportdriveneconomy, access to efficient international airtransport services is exceptionally important. Moreover,millions of travelers from Bavaria use MunichAirport as a gateway to the world.Schematic diagram of the airport’s effects on regional employmentEconomic factorLocation factorEffects from airport operationsEffects from the use of air transport(catalytic effects)Jobs on siteat the airportEmployment effects through location<strong>and</strong> investment projectsOn the airport campusRegional employment multiplier value of 1.03Employment effects in the tourism sectorIndirectjobs created through thepurchase of goods <strong>and</strong>services in the regionInducedjobs created throughexpenditure in the regionby people employeddirectly <strong>and</strong> indirectlyOther employment effectsOutside the airport campusOutside the airport campus72
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentHaving an optimum choice of aviation routes <strong>and</strong> highqualityconnections to places all over the world helpsto sustain the region’s economic strength <strong>and</strong>, by extension,the country’s longer-term economic growth.By exp<strong>and</strong>ing our airport, we are helping to safeguardour region’s future, because the success of the economytomorrow will depend heavily on our ability tocontinue operating efficiently as an aviation hub.Total employee population at Munich Airport27,40023,32020,18017,26015,45529,560Economic effectsMunich Airport has an economic impact at a numberof different levels. We differentiate here between theeffects resulting from the operation of the airport <strong>and</strong>the effects from the use of the airport.1. Effects from the operation of the airportThe direct effects include production, administrative<strong>and</strong> personnel expense, capital spending, revenue <strong>and</strong>jobs. The indirect effects are those resulting from con -tracts awarded by businesses at the airport to com -panies outside the airport – the creation of jobs, forexample. Induced effects are those caused by goods<strong>and</strong> services purchased by airport workers <strong>and</strong> peoplenot employed at the airport directly, such as valueadded, employment <strong>and</strong> revenue.p Organizations’ expenditures at the airportIn 2005, the organizations operating at Munich Airportspent an estimated €3.6 billion on products, services<strong>and</strong> capital goods (inputs). 11994 1997 2000 2003 2006 2009Source: Flughafen München GmbH, workplace survey in 2009p Wages <strong>and</strong> salaries paid by organizations at theairportIn 2009, the wages <strong>and</strong> salaries paid by all employersat Munich Airport totaled roughly €1.1 billion. Morethan €740 million were paid to employees living in theairport’s surrounding area.Rates of pay across all 29,560 airport employees,including part-time <strong>and</strong> marginally employed workers,have increased significantly in recent years. Employeeswho work on campus now earn €37,089 annually,on average. This figure grew by around 16 percent inthe period from 2006 to 2009, or roughly 5 percentper year. These findings are based on our three-yearlyworkplace survey, last conducted in 2009. A newsurvey will be carried out during the course of 2012.) www.munich-airport.com/economyAround two-thirds of this spending was with businessesoutside the airport, including €1.4 billion in theairport’s surrounding area. 2In 2011, Flughafen München GmbH, excluding its sub -sidiaries, purchased goods <strong>and</strong> services worth €38 millionin the Erding, Freising <strong>and</strong> L<strong>and</strong>shut districts <strong>and</strong>a further €62 million in the state capital, Munich. 3The airport’s effects in terms of public budgets, too,are significant. Flughafen München GmbH alone – oneof around 550 organizations at the airport – remittedmore than €29 million in directly deducted payroll taxin 2011, a sum that clearly underscores the scale ofthe airport’s economic importance.1Ernst Basler + Partner/BulwienGesa AG (2007), Zoning <strong>Report</strong>, pp. 54–582 The 72 local communities around the airport, including the city of Munich3FMG procurement department, March 201273
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Regional growth partnershipsq Economic valuep Community engagementP Stakeholder dialoguep Employment multiplierThe airport has an employment multiplier value of 1.03within its local region. This means that the 30,000 jobsat the airport today are responsible for generatingmore than 30,000 additional jobs in the airport’s surroundingarea. At the national level, Munich Airport’semployment multiplier is even higher, at 1.64. 1Just under 5 percent of people employed in the airport’slocal region work in jobs related either directlyor indirectly to the operation of the airport. Excludingthe state capital, Munich, this figure is significantlyhigher, at 16 percent. 2Forecasts indicate that the economy in the airport’slocal area will grow rapidly through to 2025, causingthe number of jobs to rise sharply. Studies show thatbuilding the airport’s third runway could create around16,700 additional jobs. 32. Effects through the utilization of air transportThe effects of major transport infrastructure facilitieson national <strong>and</strong> regional economies are referred toas catalytic effects or location effects. Munich Airportacts as a catalyst, initiating <strong>and</strong> accelerating developmentprocesses within its region.For example, the air transport services provided byMunich Airport help to reduce travel times <strong>and</strong> costs,facilitate access to global labor markets, <strong>and</strong> open upnew procurement <strong>and</strong> sales markets for businesses.In the Munich region, the airport <strong>and</strong> its air transportlinks throughout the world help to boost productivity,investment, innovation <strong>and</strong> employment. 4Following are two examples of important catalyticeffects <strong>and</strong> their impact on employment:1Ernst Basler + Partner AG (2010), Zoning <strong>Report</strong> – Updated forecasts throughto 2025, p. 21 ff.2Ernst Basler + Partner AG (2011), Regional structural change in Munich Airport’ssurrounding area, p. 223Ernst Basler + Partner AG (2010), Zoning <strong>Report</strong> – Updated forecasts throughto 2025, p. 24 ff.4Munich Airport’s catalytic effects on the national <strong>and</strong> regional economies,ECAD GmbH (European Center for Aviation Development), Darmstadt, 200874
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentp Attraction of businesses to the areaFor international businesses, easy access to efficientair transport services is a highly important factor intheir choice of where to locate. According to a recentstudy by the European Center for Aviation Development(ECAD), proximity to air transport ranks fourthamong the most important factors for businessesthat choose to set up in the Munich region. More thanhalf of these businesses would have picked a differentlocation in or outside Germany if access to air transporthad been inadequate. Companies engaged in internationalbusiness currently secure around 250,000jobs in the Munich region. 4p Value creation through tourismMunich Airport promotes tourism too, not just thein flux of business. In 2007, for example, overnightvisitors from foreign countries who traveled to theMunich region by air spent roughly €1.8 billion eurosthere. Their expenditure created €978 million in valueadded in the Munich region, thus securing more than44,000 jobs. 4Contribution to employment in theregionWith the wide range of employment it offers, MunichAirport makes a valuable contribution to the labormarket in its home region. This is evident from thefact that, for many years now, the Freising district employmentagency (which is also responsible for theErding area) has reported some of the lowest levelsof unemployment in Germany. In 2011, the joblessrate was down 0.8 percent on a year earlier, at just2.1 percent; statistically, this represents almost fullemployment. In addition, large numbers of companieshave chosen to locate close to the airport <strong>and</strong> aredriving growth <strong>and</strong> prosperity in the region.Jobs created by a single long-haul jetAt Lufthansa, one Airbus A340-600long-haul jet generates 220 jobs directlyTypical business 1with fewer than 200 employeesStationing a new long-haul jet at the airport, with 220 directly related jobs <strong>and</strong> a capitalcommitment of €100–150 million, is comparable to setting up a midsize businessA further 300 indirect jobs are created in Lufthansa subsidiaries <strong>and</strong>regional service <strong>and</strong> commercial businessesMunich AirportIn 2011: 24 long-haul jetsIntermediate term (with third runway): 40 long-haul jets1More than 99 percent of businesses in Germany have fewer than 200 employees.75
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityP Stakeholder dialogueP Regional growth partnershipsP Economic valueq Community engagementCommunity engagement) www.munich-airport.com/sponsoringDonations <strong>and</strong> sponsorshipsAs a responsible corporate citizen, we help our hostregion by providing both financial <strong>and</strong> in-kind supporton a voluntary basis to around 500 projects in fieldslike social welfare, education, sport <strong>and</strong> culture. In 2011,we had agreements in place to support 74 sports clubsin the Erding <strong>and</strong> Freising districts. To underscore ourcommitment to promoting youth sport <strong>and</strong> to giveclubs a solid basis on which to plan ahead, these agree -ments have terms of several years.Another important area of our sponsorship work centerson supporting educational institutions – throughthe provision of funding to purchase books for school<strong>and</strong> community libraries, for example. Other financialsupport includes contributions to projects promotingthe integration of migrant children, <strong>and</strong> funding foradult <strong>and</strong> youth education in community colleges. Werecently signed our first donation agreement with aterm of three years, with Kastulus Secondary Schoolin Moosburg, to help with the purchase of new books<strong>and</strong> to enable the school to plan new education projectsmore reliably.FMG currently helps to finance an intensive, full-daytuition program outside the mainstream school systemfor youngsters with severe educational difficulties. Theprogram aims to advance students’ social <strong>and</strong> emotionalgrowth, partly through outdoor education <strong>and</strong>labs, to give them the grounding they need in orderto integrate better socially <strong>and</strong>, at the same time, preparethem for school-leaving exams or a vocationaltraining course.We also help fund a wide range of cultural activities inthe region, supporting everything from professionalorchestras <strong>and</strong> theatre ensembles to music schools,school orchestras, <strong>and</strong> concerts. In 2011, for example,we again sponsored the Erding Jazz Festival.Numerous social welfare organizations <strong>and</strong> initiatives,too, receive funding, including Lebenshilfe Freising,which supports people with disabilities, several agen -cies in the Erding district that distribute food to peoplein need, <strong>and</strong> the aid agency Caritas in Freising.Donations <strong>and</strong> sponsorships in 2011Percentage of overall budgetEducation13%Culture21%Sport36%Social welfare30%Donations funded with flextime creditIn early 2011, FMG’s executive management <strong>and</strong>works council agreed to roll out a new charitable givingmodel under which employees’ flextime credit “lost”by not being taken as time off during 2010 could begifted to social welfare initiatives at its equivalentvalue. This raised a sum of €51,500, which was donatedto 11 social welfare organizations in the airportregion, including food distribution agencies in the Er -ding <strong>and</strong> Freising districts, a day center in Erding foryoung people <strong>and</strong> adults with learning difficulties, thewomen’s shelter in Erding, <strong>and</strong> the organization LebenshilfeFreising.76
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentVoluntary work by airport employeesMany people who work at Munich Airport volunteertheir time to help those in need or in difficult circumstancesas a result, say, of unexpected life events ora natural disaster. Some of these airport workers aremembers of aid organizations; others assist peopleon a purely personal basis. The FMG Group activelysupports initiatives of this kind, in part by making itsinfrastructure available to employees.Help in many different areasRun by employees <strong>and</strong> friends of FMG, the organizationFlughafenverein München e. V. has been raisingfunds for charitable <strong>and</strong> philanthropic initiatives for15 years now. In October 2011, for instance, in thespace of just 48 hours, it succeeded in collecting40 tons of relief supplies to send to the victims of aserious earthquake in eastern Turkey.A charity golf tournament in 2011, the fourth organizedby Flughafenverein, managed to raise €11,500 forStiftung Sehnsucht, a foundation engaged in nationwidechild <strong>and</strong> youth addiction prevention programsin schools <strong>and</strong> communities.In August 2011, Flughafenverein München e.V. joinedforces with the organization Navis e.V. to help thevictims of a devastating drought in northeast Kenya.Through the initiative, they were able to supply twodrinking water treatment plants <strong>and</strong> provide medicalaid to the population. Navis e.V. is a privately run aidagency that specializes in disaster relief, both inGermany <strong>and</strong> abroad. Flughafen München GmbHbecame an official member in January 2012.Aid for TanzaniaA customs officer at Munich Airport is working tosupport the inhabitants of Kit<strong>and</strong>ililo, a poor villagein Tanzania. His home community of Ismaning, nowtwinned with Kit<strong>and</strong>ililo, regularly collects relief supplies.The officer has personally accompanied them toTanzania several times to make sure they get throughto where they are needed. Flughafen München GmbHhelped promote a fundraising campaign launched atthe airport to benefit the village.77
pIntroduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility237€308.1milliontrainees in groupcompanies atDecember 31, 2011QThe FMG Group hasa total workforce ofalmost 7,000 people.in personnel expensesacross the FMG Group78
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentp Human resources strategyp Training <strong>and</strong> HR developmentp Diversityp Work-life balance <strong>and</strong> health protectionp Remuneration <strong>and</strong> codeterminationWorkforce <strong>and</strong> work environment80 Human resources strategy82 Training <strong>and</strong> HR development86 Diversity87 Work-life balance <strong>and</strong> health protection90 Remuneration <strong>and</strong> codetermination79
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityHuman resources strategy) www.munich-airport.com/workforceHR management sets new targetsWith a total employee population of around 30,000,Munich Airport is the biggest employer in its region.Flughafen München GmbH <strong>and</strong> its subsidiaries <strong>and</strong>affiliates alone employ almost 7,000 people. Together,they are the second-largest employer on campusafter Deutsche Lufthansa AG, with a workforce of al -most 10,000.HR strategy: Targets <strong>and</strong> initiativesTarget 1Target 2To achieve FMG’s growth targets we need employeesin sufficient numbers with the right levels of education<strong>and</strong> training.We will accomplish this by:We want to continuously improve our efficiency <strong>and</strong>operational performance.We will accomplish this by:’ Establishing qualitative <strong>and</strong> quantitative personnelrequirements over a five-year timeframe (to enable usto determine the headcounts we need in various areas)’ Aligning vocational <strong>and</strong> professional training to our qualitative<strong>and</strong> quantitative personnel requirements’ Developing marketing <strong>and</strong> recruitment strategies’ Reviewing employee agreements <strong>and</strong> company agreementsto identify optimization potential’ Defining measures to positively influence our workforce’semployability <strong>and</strong> their health’ Developing models that will enable us to assign employeeswith health limitations to productive roles in thecompanyTarget 3Target 4We want to further improve our attractiveness as anemployer, both inside the organization <strong>and</strong> out, <strong>and</strong> tofoster greater employee loyalty.We will accomplish this by:We want to establish leadership excellence withinthe Group <strong>and</strong> continuously improve the quality ofleadership.We will accomplish this by:’ Building a strong employer br<strong>and</strong> for the FMG Groupto position <strong>and</strong> promote our organization, internally <strong>and</strong>externally, as a great place to work’ Developing a talent-management process that encourageshigh potentials <strong>and</strong> high performers to identifywith the company, promotes their growth <strong>and</strong> fosterscompany loyalty’ Creating a leadership excellence program (prioritizingexcellence criteria <strong>and</strong> training)’ Introducing employee performance appraisals <strong>and</strong>upward feedback’ Introducing a compensation model for employees in keyfunctions <strong>and</strong> reviewing compensation arrangements fortier 1 <strong>and</strong> 2 management80
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentq Human resources strategyp Training <strong>and</strong> HR developmentp Diversityp Work-life balance <strong>and</strong> health protectionp Remuneration <strong>and</strong> codeterminationOur business growth <strong>and</strong> performance over the longerterm will rely extensively on a successful HR strategy<strong>and</strong> management approach. Our HR strategy needsto align to <strong>and</strong> reinforce Flughafen München GmbH’swider corporate strategy, <strong>and</strong> to focus on improvingour current business situation. At the same time, it hasto address current social megatrends – primarily, demographicchange <strong>and</strong> the related issue of workforcehealth, but also education, individualization, regulation/deregulation <strong>and</strong> globalization.Today, we have an HR strategy in place that reflectsthese requirements <strong>and</strong> establishes key HR managementtargets <strong>and</strong> packages of measures.Organizational optimizationHR has undergone partial reorganization to facilitatesystematic implementation of its strategy. We havenow set up a separate unit dedicated to ) personnel<strong>and</strong> management development. This is an increasinglyimportant field, because our ability to hire peoplein sufficient numbers with the right qualificationsis a key requirement for the company’s continuedgrowth. Parallel to this, we are also stepping up theleadership excellence program we initiated in order todrive continuous improvement in leadership quality.The second organizational change concerns ) healthmanagement. We have created a special health man -agement office, which reports directly to the head ofHuman Resources, to reflect the strategic emphasiswe place on a healthy workforce <strong>and</strong> on current initia -tives to maintain our people’s personal health <strong>and</strong>employability.Responsible employment practicesNinety-eight percent of the FMG Group’s workforceare employed on terms defined in collective pay-scaleagreements. Under these agreements, there is nodifferentiation between wages paid to men <strong>and</strong> towomen engaged in comparable types of work.Flug hafen München GmbH is a member of the regionalpublic employers’ association <strong>and</strong>, as such, isbound by the TVöD collective pay-scale agreementfor public sector employees. However, our employeebenefits signifi cantly exceed those required by law.Regular <strong>and</strong> alter nating shift work, for instance, maybe remunerated either financially or through timesupplements; vacation entitlements, too, are moregenerous than those dictated by national employmentlegislation. In addition, ancillary company agreementsare in place that enable non-scale remuneration suchas the payment of travel subsidies or hardship allow -ances for physically challenging types of work. Wehave also done more in recent years to enable employeesto share in the company’s success.The collective pay-scale agreement additionally includesretirement provisions, <strong>and</strong> these are coveredby Bavaria’s supplementary pension fund for publicservice employers.Similar provisions are in place at FMG Group subsidiaries,though these are governed by separate collectiveagreements. To meet our air port’s specific operationalrequirements, half of FMG employees work in shifts –in areas like the fire service, security, aircraft h<strong>and</strong>ling,<strong>and</strong> terminal services, for example.) See p. 85 <strong>and</strong> p. 153) See p. 89 <strong>and</strong> p. 15381
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityTraining <strong>and</strong> HR developmentA rich career <strong>and</strong> vocational trainingprogramAs the operator of a steadily growing airport with anextensive retail <strong>and</strong> services portfolio, we can providea wide range of jobs in challenging <strong>and</strong> interestingfields for everyone from school leavers to career starters<strong>and</strong> career advancers.In 2011, we offered work experience placements for140 school students <strong>and</strong> 90 undergraduates in variousunits throughout the organization – an initiative designedto enable young people to discover first-h<strong>and</strong>what it is like to work at our airport. We also offeredbachelor’s <strong>and</strong> master’s dissertation topics in connectionwith a number of company projects.At December 31, 2011, 237 young people were onFMG training programs, preparing for jobs in fields asdiverse as mechatronics, protection <strong>and</strong> security, cook -ing <strong>and</strong> catering, <strong>and</strong> real estate. In September 2011,90 school-leavers embarked on vocational <strong>and</strong> workstudyprograms with us, making us one of the region’sbiggest training providers yet again.Alongside training for classic career tracks, the FMGGroup offers a number of new <strong>and</strong> innovative voca -tional programs, including system gastronomy <strong>and</strong> in -dustrial firefighting. We also operate popular universitylevelwork-study programs in aviation management<strong>and</strong> business administration (both leading to a bachelorof arts degree), plus a bachelor of science program inbusiness IT, which offers an interesting alternative toa classic degree program for talented school-leaverswith a university entrance qualification in mathematicsor the sciences.FMG generally used to consider itself a regional employer,but this perception has now changed. Giventhe current demographic shift, the exceptionally lowjobless rate in the Erding <strong>and</strong> Freising districts (whichaveraged 2.1 percent during 2011) <strong>and</strong> the attendantshortage of labor, we will need to tap into a muchwider labor market, going forward. This is becausewe will only be able to cope with the growth projectedfor Munich Airport if we can exp<strong>and</strong> our workforcewith the right kinds of people equipped with the rightskills <strong>and</strong> qualifications. This means raising our profile82
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Human resources strategyq Training <strong>and</strong> HR developmentp Diversityp Work-life balance <strong>and</strong> health protectionp Remuneration <strong>and</strong> codeterminationas an attractive employer <strong>and</strong> doing more to publicizethe range of interesting jobs we offer. Hence, we againstepped up <strong>and</strong> significantly exp<strong>and</strong>ed our companywideHR marketing activities for relevant target groups.FMG’s citizenship initiativesAs a committed corporate citizen, we engage in arange of initiatives to support school <strong>and</strong> educationprojects in our region. The SCHULE WIRTSCHAFTFreising-Erding-Flughafen working group is a prominentcase in point. This was set up to promote networkingbetween local schools <strong>and</strong> businesses, <strong>and</strong>we have played an active part in it since 1997.We are also the primary sponsor of “Berufsfit”, the re -gion’s biggest careers orientation fair, hosting it for theseventh time at the airport in October 2011; we are apartner of the nationwide Girls’ Day program; <strong>and</strong> wehost regional rounds of the “Jugend forscht/Schülerexperimentieren” youth research competition. Since2005, we have been operating a program aimed athelp ing young people unable to win a place on a vocationaltraining scheme. It offers them six months ofpreparatory practical training designed to build coreentry-level skills, greatly increasing their chances ofgaining a foothold in the primary labor market <strong>and</strong>finding a suitable career.The Munich Airport Academy: Trainingfor everyoneAlongside vocational <strong>and</strong> career training, onward trainingfor our workforce forms an important element ofour HR strategy. Our training arm, the Munich AirportAcademy, not only offers education programs for theFMG Group’s entire employee base, it also operatesas a training provider for third-party organizations.Group employees can choose from an extensive arrayof courses, ranging from specialist seminars in specificaviation industry fields to more general courses inareas like computing, foreign languages <strong>and</strong> personaldevelopment. Given the growing importance of HRdevelopment, the number of workshops <strong>and</strong> speciallytailored, dem<strong>and</strong>-based seminars (on customer service<strong>and</strong> customer focus for workers in terminal services,for instance) increased by 20 percent in 2011.The Airport Academy consults for other organizations,too, including several outside Germany. In 2011, for ex -ample, the Academy won contracts with five air portsin Austria to develop a web-based system to delivertraining courses on security. Its international clientbase now also includes major airports like Qatar inOman, which hired the Academy to consult on trainingprograms prior to commissioning new airport facilities.Aviation training: Ensuring safety <strong>and</strong>efficient h<strong>and</strong>lingFollowing the merger of FMG’s former Ground Han -dling division with the subsidiary mucground to formAeroGround, the Munich Airport Academy’s aviationtraining unit focused largely on tasks carried out byground h<strong>and</strong>ling personnel in 2011. Whereas training inthe past typically centered on individual roles <strong>and</strong> duties,all of AeroGround’s employees had to be broughtup to the same level of knowledge on a range of h<strong>and</strong>lingprocesses <strong>and</strong> operations in a string of seminarsheld over the course of the year.83
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityThis involved thorough training in all ground-h<strong>and</strong>lingtask areas, including loading <strong>and</strong> unloading aircraft,transporting passengers <strong>and</strong> crew, <strong>and</strong> h<strong>and</strong>ling bag -gage, freight <strong>and</strong> mail. There was also significant de -m<strong>and</strong> for basic training of recently hired ground han -dling personnel <strong>and</strong> for cross-qualification training thatwould enable employees from other parts of the or -gan ization to be assigned to aircraft <strong>and</strong> baggage h<strong>and</strong>lingduties if necessary.Extensive security training programsAll of the security personnel working at Munich Airportare trained in accordance with statutory regulations.Training curricula include courses on the speciallegal requirements involved in dealing with people,such as those defined in Germany’s General Act onEqual Treatment.One of the primary focuses of security training in 2011was on preparing new aviation security staff for personnelscreening <strong>and</strong> for combined personnel <strong>and</strong>goods screening duties. Seven basic training courseswere held for employees working at screening pointsaround the airport during the course of the year, comparedto just four, on average, in prior years.Security officer trainingNew EU regulations came into force at the end of 2011concerning aviation safeguards against terror attacks.These regulations require airports to introduce toughersecurity checks on goods entering the security-criticalarea of the airport. The only exceptions are goodsthat arrive via secure supply chains, have already beensubjected to a security check by a trusted supplier, <strong>and</strong>have subsequently been protected against unauthorizedaccess until they are transported into an airport’ssecure area.Companies supplying goods destined for Munich Air -port’s secure area can apply to Flughafen MünchenGmbH’s security unit to be qualified as a trusted supplier.This requires that suppliers appoint one or moresecurity officers who receive special training from airportsecurity professionals. The qualification programis scheduled to begin in the first quarter of 2012.Funding for private training initiativesIf employees elect to take part in job-related onwardtraining on their own initiative <strong>and</strong> in their free time,we can provide them with financial support. In addition,employees requiring work-related training not84
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Human resources strategyq Training <strong>and</strong> HR developmentp Diversityp Work-life balance <strong>and</strong> health protectionp Remuneration <strong>and</strong> codeterminationavailable from the Munich Airport Academy may attendprograms offered by third-party training providers, inwhich case FMG will carry the costs.Exchanges at many levelsAlongside the range of seminars <strong>and</strong> courses available,our vocational trainees, employees <strong>and</strong> executives canalso take part in national <strong>and</strong> international exchangeprograms to exp<strong>and</strong> their knowledge <strong>and</strong> develop theircross-cultural soft skills. Through the EU’s Leonardoda Vinci education <strong>and</strong> cultural program, for instance,21 FMG vocational trainees had the chance to spendtime gaining work experience at partner airports inVienna, Athens, Lisbon <strong>and</strong> Malta in 2011.Through collaborative programs with five partner airports<strong>and</strong> operating companies – Denver InternationalAirport, Central Japan International Airport, Airports ofThail<strong>and</strong>, Singapore Changi Airport und Beijing CapitalInternational Airport Co., Ltd. – FMG staff <strong>and</strong> executiveswere able to take part in wokshops <strong>and</strong> exchangeprograms to help broaden their expertise <strong>and</strong> gatherideas on how we can advance our airport.Developing leadersOur leadership development program in 2011 consistedof a wide range of measures <strong>and</strong> projects, includingindividual coaching for management-level employees.New hires <strong>and</strong> existing employees moving intomanagerial posts take part in a six-month program ofconsulting <strong>and</strong> induction coaching, tailored individuallyto questions arising in connection with their newleadership role. HR development at FMG also helpsselect suitable, high-quality internal <strong>and</strong> external c<strong>and</strong>idatesfor key roles <strong>and</strong> posts in lower <strong>and</strong> middlemanagement.As part of internal reorganization at the HR division inthe first half of 2011, we appointed new personnel officerswhose role is to provide managers with a singlepoint of contact for HR issues. These officers are onh<strong>and</strong> to assist with anything from personnel planningto disciplinary issues, <strong>and</strong> to provide professional advice<strong>and</strong> support where needed.Leadership excellence: A high-performancecultureIn mid-January 2011, we launched a new project bannered“Leadership excellence – creating a high-performanceculture”, for management-level employeesat Flughafen München GmbH. The program centerson fostering a culture of high performance <strong>and</strong> verticalcollaboration across all tiers of management.Its aim is to develop <strong>and</strong> exp<strong>and</strong> managers’ mediationabilities. Executives <strong>and</strong> team leaders attended workshops<strong>and</strong> presentations that put forward a range ofideas <strong>and</strong> suggestions on how to improve collaborationwithin the company <strong>and</strong> on how to support <strong>and</strong>prepare the people they lead as effectively as possiblefor tomorrow’s challenges. The first training modulecentered on leadership through dialogue; the secondexplored how to develop a culture of high performancein teams.Given that our corporate culture is not just about im -parting knowledge but also about communicating <strong>and</strong>sharing ideas, we held our first workshops on dialogue– four in all – in June 2011. These were attended bymanagers from different divisions <strong>and</strong> levels withinthe organization <strong>and</strong> offered them an opportunity todiscuss various aspects of their day-to-day work.Another project we embarked on in 2011 was to definea corporate leadership code, based in part on ideasput forward by managers attending our dialogue workshops.Their input on what constitutes good leader -ship at FMG was discussed with the executive board<strong>and</strong> upper management, <strong>and</strong> established the foundationfor a new code describing what the company ex -pects from its managers. The code’s principles formthe basis for the selection, training <strong>and</strong> assessmentof leaders <strong>and</strong> serve as a valuable guide for managersin leadership situations. At the end of 2011, the projectwas merged into an ongoing leadership developmentprogram.85
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityDiversityCultural diversityIn an international organization like ours, which benefitsfrom the heterogeneity of its people <strong>and</strong> theirdifferent mindsets <strong>and</strong> cultural backgrounds, mutualacceptance <strong>and</strong> appreciation are exceptionally important.In Germany, the Equal Treatment Act has estab lisheda legal framework designed to support <strong>and</strong> promoteequality of opportunity <strong>and</strong> diversity. The Act prohibitsdiscrimination against employees on the basis of race,ethnic background, gender, religious persuasion, ide -ology, disability, sexual identity or age. At FMG weensure that our managerial employees receive specialtraining <strong>and</strong> are fully informed about this legislation.Documents are also available on the corporateintranet to familiarize our employees with the Act’sfundamental provisions.With 1,074 foreign nationals from more than 50 differentcountries among our 6,864 employees in theFMG Group, living diversity is very much an establishedpart of our corporate culture. The protectionof human rights has utmost priority for us within ourorganization’s sphere of influence; the risk of childlabor is precluded by current legislation. During thereview period, there were no reported complaintsconcerning discrimination or the infringement of humanrights.Disabled-friendly employerIn 2011, around 500 people with severe disabilitieswere employed at Flughafen München GmbH – around11.5 percent of our workforce. This means we offer farmore jobs for the disabled than the statutory quotaof five percent. Under our current integration policy,we have redesigned numerous work points in thecompany to better suit the needs of people with disa -bilities. This was conducted with the support of ourdisabilities officers <strong>and</strong> representatives, companydepartments, <strong>and</strong> outside specialists like the Officeof Integration, the Department of Pensions, <strong>and</strong> theEmployment Agency.For some time now, FMG has also supported a privateschool operated by the organization LebenshilfeFreising for young people with disabilities. Besidesone-week work experience taster programs, we currentlyalso offer disabled youngsters two-week blockinternships, three times a year, plus one-day-a-weekwork experience opportunities. At the end of 2011,we hired the first school-leaver from this program ona full work contract – an important l<strong>and</strong>mark in theintegration of people with learning difficulties in theprimary labor market.Opportunities for employees with healthlimitationsWe have an in-house system of integration managementthat aims to support <strong>and</strong> assist employees whoface limiting health problems <strong>and</strong> are no longer ableto continue in their current area of work. Through thissystem, they can find suitable alternatives. Some re -main employed in their own departmental units inwork that matches their abilities; others are reassignedto roles in internal services – as couriers, messengers,maintenance staff <strong>and</strong> quality assessors, for example.86
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Human resources strategyP Training <strong>and</strong> HR developmentq Diversityq Work-life balance <strong>and</strong> health protectionp Remuneration <strong>and</strong> codeterminationWork-life balance <strong>and</strong> health protectionAn attractive, family-friendly employerThe ability to tailor working hours to different needsis important not just in helping our people to strikea good balance between work <strong>and</strong> home life, but alsoin ensuring our appeal as an organization to work for.Around 1,300 people in almost every area of workacross the FMG Group currently benefit from flexiblework arrangements; these include everything fromflextime <strong>and</strong> part-time working to partial telecommuting<strong>and</strong> scheduling based on work-time preferences(a provision specifically for those engaged in shiftwork).Besides attractive supplementary benefits, our employeesenjoy a range of offerings designed to helpthem balance careers <strong>and</strong> family life <strong>and</strong>, at the sametime, protect their health <strong>and</strong> wellbeing.Benefits for employees) A child daycare center (“Airport Hopser”) on the) airport campus, for employees’ children up tothree years of age) Options for extended parental leave) Employee hostels close to the airport) Vacation programs for employees’ children) Social counseling <strong>and</strong> family services) Various health promotion programs, includinghealth <strong>and</strong> fitness courses, a company sports club,<strong>and</strong> ergonomics consulting) Reduced-rate monthly season tickets for publictransport) An employee insurance service) Free parking on the airport campusA baseline essential: Industrial safetyHigh st<strong>and</strong>ards of industrial health <strong>and</strong> safety (IHS) arefirmly anchored in our corporate culture at FlughafenMünchen GmbH <strong>and</strong> are crucial to ensuring that ourpeople are properly protected from work-related physicalinjury <strong>and</strong> ill health. We pursue a rigorous courseof industrial safety <strong>and</strong> take every step possible toguard against accidents <strong>and</strong> job-related illness. Ourindustrial health <strong>and</strong> safety team works closely withstate oversight agencies <strong>and</strong> professional associationsto ensure that we keep up with changing statutoryregulations <strong>and</strong> implement required changes swiftly.) Glossary87
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityA sharp drop in the accident rateOur accident statistics for 2011 show a steep 20.6 percentdrop in the number of reportable occupationalaccidents compared to a year earlier, from 175 to 139.During the course of 2011, safety experts conductedmore than 60 on-site inspections at the airport. Theseinspections confirmed that IHS measures were beingimplemented effectively <strong>and</strong> adapted correctly in linewith changing operating procedures <strong>and</strong> practices.We also have a health circle made up of members ofthe IHS committee, the works council <strong>and</strong> the airport’smedical service. This meets monthly to discuss currenthealth topics affecting the workforce as a whole.One initiative introduced on the advice of this bodywas to offer free annual flu vaccinations. Other typesof inoculations, too, are available – against hepatitis<strong>and</strong> tick-borne encephalitis (TBE), for example – whichare provided by the employee medical service ofMediCare, an FMG associated company.<strong>Report</strong>able occupational <strong>and</strong> commuting accidents 2009–2011191175139MediCare’s role as our employee medical serviceprovider extends to assessing categories of work todetermine their possible health impact, advising onworkstation ergonomics <strong>and</strong> health protection, <strong>and</strong>promoting general health. It also operates variousprevention <strong>and</strong> screening programs, including eyetests for employees working at visual displays, <strong>and</strong>regular hearing tests for employees who work in noisyenvironments.2009 2010 2011One prerequisite for providing all our company units<strong>and</strong> departments with effective support on safety issuesis that FMG’s executive management <strong>and</strong> workscouncil cooperate in a spirit of mutual trust. All IHSmeasures, from safety-driven technical <strong>and</strong> organizationalchanges to the provision of personal protectiveequipment, have to be coordinated with the workscouncil.We have an industrial health <strong>and</strong> safety committeewhich convenes on a quarterly basis to discuss IHSissues at the airport. Besides senior executives, middlemanagers <strong>and</strong> safety officers from throughout the or -ganization, its members include occupational phy -sicians <strong>and</strong> works council representatives. This membershipstructure ensures that the committee representsthe interests of our entire employee population.To help protect the latter group, safety experts continuallyupdate <strong>and</strong> extend the airport’s noise map; theyalso test noise levels using personal dosimeters thatmeasure vibrations, either on a transitory basis or overextended periods of up to eight hours. Where thereis a need, they submit to the relevant company unitor department proposals on how to mitigate noise.We also place considerable importance on safeguardsto protect those employees who work with hazardoussub stances or biological materials or who workat heights.Our IHS initiatives additionally include delivering <strong>and</strong>documenting m<strong>and</strong>atory <strong>and</strong> statutory training <strong>and</strong>instruction programs on industrial health <strong>and</strong> safety inour divisions <strong>and</strong> other units. The breadth of trainingranges from induction programs for new hires or em -ployees switching units within the organization, toinstruction on the safe operation of ground h<strong>and</strong>lingequipment.88
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Human resources strategyP Training <strong>and</strong> HR developmentP Diversityq Work-life balance <strong>and</strong> health protectionp Remuneration <strong>and</strong> codeterminationCompany health managementOne key focus of our HR policy in 2011 was on advancingour company health management, in part throughthe introduction of consulting on ergonomics. For example,we implemented ideas for reducing muscular<strong>and</strong> skeletal strain <strong>and</strong> advised employees on howbest to set up their work points. These initiatives aimto help older members of the workforce in particularto remain in the company for longer, <strong>and</strong> are a timelyresponse to the demographic trend toward an ageingsociety.Likewise in 2011, we implemented a company agree -ment on integration management. This sets out toprovide employees with individually tailored assistancedesigned to reduce health risks <strong>and</strong> guard against be -coming unfit for work, <strong>and</strong> to help employees whohave spent a long period of time off work to reintegrate.Integration management is now part of ourwider company health management system.As of 2011, employees working for the airport fire servicefall under a new collective agreement reachedjointly with the “komba” <strong>and</strong> “ver.di” labor unions.Besides pay scales <strong>and</strong> working hours, the agreementcovers improved old age provisions <strong>and</strong> theoption of entering phased retirement from the ageof 60. In addition, we introduced a new program forimproving <strong>and</strong> maintaining firefighters’ ability to work,which includes an hour’s sport every working day.Our health management system’s supervisors werealso busy in 2011 implementing so-called Regulation2 issued by Deutsche Gesetzliche Unfallversicherung(DGUV), a state accident insurance carrier. Regulation2 came into force for worker compensation associations<strong>and</strong> public accident insurers on January 1, 2011,<strong>and</strong> provides uniform guidance on how Germany’sIndustrial Safety Act is to be interpreted. The regulationnot only describes areas of required expertise butalso company medical <strong>and</strong> technical safety provisions<strong>and</strong> support models. We plan to introduce a new com -pany agreement in 2012 that implements DGUVRegulation 2.89
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityRemuneration <strong>and</strong> codeterminationPersonnel costs <strong>and</strong> social benefitsOur employees are remunerated according to theirqualifications <strong>and</strong> their performance. In 2011, the averagesalary of a Flughafen München GmbH employeewas €41,868 – significantly more than the nationwideaverage in the transport <strong>and</strong> logistics industry. Thisfigure includes all pay-scale <strong>and</strong> managerial employees,as well as part-time <strong>and</strong> marginally employedstaff.The FMG Group’s overall HR expense in 2011 totaled€308.1 million, of which Flughafen München GmbHaccounted for €212.9 million. The latter figure comprises€168.5 million in wages, salaries, <strong>and</strong> travel <strong>and</strong>meal subsidies, plus €44.4 million in social securitylevies <strong>and</strong> retirement <strong>and</strong> support provisions.In addition to their monthly wages <strong>and</strong> salaries, allFlug hafen München GmbH employees – full <strong>and</strong> parttime– receive pay-scale <strong>and</strong> non-pay-scale supplementarybenefits, such as annual bonuses, a profitshare, a company pension, <strong>and</strong> subsidies for meals<strong>and</strong> travel.A culture of codeterminationUnder the provisions of the Works Constitution Act, aGerman law governing industrial relations in corporations,Flughafen München GmbH’s workforce enjoysa variety of codetermination rights.The works council currently comprises 27 members<strong>and</strong> is re-elected every four years. Its task is to representthe interests of FMG employees <strong>and</strong> to overseethe fulfillment of collective pay-scale agreements,statutory regulations <strong>and</strong> requirements, <strong>and</strong> internalcompany agreements. The latter include agreementscovering corporate health management, addiction pre -vention, the integration of people with disabilities (orequivalent status), corporate integration management,<strong>and</strong> a variety of working time models. The companyis required to notify the works council in detail <strong>and</strong> ingood time about any intended structural changes soas to enable optimum solutions to be found, both forthe company <strong>and</strong> for employees.A voice for traineesThe company has a youth <strong>and</strong> trainee council whoserole is to represent the interests of young people <strong>and</strong>vocational trainees. Executive management is requiredto involve the council in connection with anyissues pertaining to young employees <strong>and</strong> trainees.The council is represented on the works council,where it has a veto right on youth issues to allow de -cisions to be deferred pending further discussion. Itis re-elected once every two years <strong>and</strong> currently comprisesseven members. Employees aged 25 years <strong>and</strong>under can st<strong>and</strong> for election, <strong>and</strong> anyone currently invocational training is entitled to vote.Opportunities for involvementAt FMG, we encourage our people not just to take ona role in statutory <strong>and</strong> company bodies like the workscouncil, the supervisory board, the youth <strong>and</strong> traineecouncil, the council for employees with disabilities,<strong>and</strong> the industrial health <strong>and</strong> safety council, but alsoto actively support other bodies <strong>and</strong> initiatives.There is plenty of scope for involvement – in everythingfrom our careers <strong>and</strong> family project, the women’sworking group at FMG <strong>and</strong> the company sportsclub to the company health management workinggroup, the company’s ideas management workinggroup <strong>and</strong> volunteering initiatives like FlughafenvereinMünchen e.V.90
Workforce <strong>and</strong> work environmentP Human resources strategyP Training <strong>and</strong> HR developmentP DiversityP Work-life balance <strong>and</strong> health protectionq Remuneration <strong>and</strong> codeterminationEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentProtecting jobsTo comply with a 1996 EU directive requiring that thirdpartyground services providers be allowed to operateat airports in the European Union, we had to admit acompeting operator to Munich Airport. Because thisoperator paid its employees lower wages <strong>and</strong> wasthus able to charge lower rates than Flughafen MünchenGmbH for ground h<strong>and</strong>ling services, we facedthe risk of having to shed jobs in this sector at sometime in the future.Our first step to counter this risk was to form a newFMG subsidiary, MUC Ground Services (MGS). However,to secure the renewal of ground h<strong>and</strong>ling contractswith carriers – including Lufthansa, our biggestcustomer – management had to ask the workforce tomake sacrifices on more than one occasion in recentyears, both in terms of pay <strong>and</strong> the way their work wasorganized. In July 2011, AeroGround, a wholly ownedFMG subsidiary, began providing ground h<strong>and</strong>lingser vices at Munich Airport. This company employsformer FMG workers (under the same contracts) <strong>and</strong>former MGS workers.Working closely with the labor unions <strong>and</strong> the workscouncil, we have managed to find solutions that willenable us to secure jobs in this segment at least until2016. These solutions include collective labor agreements,special working time arrangements aimed ateasing the burden on employees, <strong>and</strong> greater use ofpart-time workers to support the core workforce atpeak times. All this has enabled the FMG Group toprotect jobs in ground h<strong>and</strong>ling while continuing tooffer airlines <strong>and</strong> their passengers a reliable service.Now, though, parts of the European Commission <strong>and</strong>a small number of airlines are calling for the marketto be opened up still further. This is something thatFMG, its works council, <strong>and</strong> policymakers in Berlin<strong>and</strong> Brussels all firmly reject. An additional groundh<strong>and</strong>ling operator at Munich Airport would make itimpossible for AeroGround to break even, a situationthat would clearly have negative consequences forthe workforce <strong>and</strong> for job security.91
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityAround75%Pof the heating energy weneed at Munich Airport isgenerated on site.Our goal is to achievecarbon-neutral growthby 2020.A 6% dropQin carbon emissionssince 201092
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentp Climate strategyp Resource stewardshipp Noise controlp BiodiversityEnvironmental <strong>and</strong> climate protection94 Climate strategy102 Resource stewardship105 Noise control108 Biodiversity93
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityClimate strategy) See p. 37 f. <strong>and</strong> p. 108) Glossary) Glossary) Glossary) www.munich-airport.com/climate-protection) Glossary) See p. 41Action at multiple levelsClimate change involves everyone, <strong>and</strong> at Munich Airportwe are keenly aware of our responsibility whenit comes to reducing our climate footprint. This is whywe engage in a comprehensive array of initiatives tomitigate <strong>and</strong> offset our climate impacts.Members of the ) German Airports Association(ADV) have defined an extensive climate strategy thatsystematically charts a way forward for Germany’scommercial airports. Intended to complement the fourpillarapproach originally adopted by the aviation industryin Germany in 2007, the ADV’s climate strategy in -volves carefully logging ) emissions <strong>and</strong> taking concreteaction to bring about their reduction. The formerfour-pillar approach set out to minimize aviation’s en -vironmental impacts through new technologies, effi -cient infrastructure, optimized operations <strong>and</strong> economicinstruments, while at the same time enablingthe industry to grow <strong>and</strong> remain competitive.In July 2008, the European Parliament proposed a capon aircraft carbon dioxide emissions, setting as theupper limit the mean ) CO 2 emissions generated byair transport between 2004 <strong>and</strong> 2006. From 2012, airlines’emissions must not exceed 97 percent of thisguideline figure, <strong>and</strong> 95 percent from 2013.Our contribution to climate protectionOur scope for exerting a positive influence on climatechange may be limited, but we explore every possibleavenue to bring down emissions as far as we can. Partof our strategy is to manage our airport’s operations<strong>and</strong> development in such a way that we contain <strong>and</strong>control our impacts on the environment effectively <strong>and</strong>do more than merely comply with statutory requirements<strong>and</strong> environmental regulations.Preserving resources, saving energy <strong>and</strong> reducing car -bon emissions are three core targets when we planour buildings, a policy evidenced by the ) satellitewe are constructing for Terminal 2. We use the latestenergy provisioning technology available, we systematicallyexploit potential savings through smartenergy-management solutions, <strong>and</strong> we take stepsto promote employee awareness of the importanceof using energy sustainably. We also protect the l<strong>and</strong><strong>and</strong> preserve natural diversity by working closely withthe nature conservation authorities to plan suitable) compensatory mitigation measures.One of our most ambitious targets is to achieve carbon-neutralgrowth by 2020. Essentially, this meanskeeping the carbon emissions that we as an organizationcan directly control to a level of around 160,000tons a year (the volume in 2005, our baseline year), inspite of our expansion plans <strong>and</strong> our projected trafficgrowth. Without systematic efforts to control our carbonfootprint, our emissions would likely increase bybetween 50,000 <strong>and</strong> 80,000 tons by 2020.To hit our target, we launched a group-wide carbonreduction program in 2009. It has four main thrusts:sustainable energy provisioning, efficient use of ener -gy, awareness-raising among our workforce, <strong>and</strong> sustainablebuilding. You can find additional informationon our climate initiatives on the ) Internet.Systematic CO 2 monitoring <strong>and</strong> footprintanalysisA key element in carbon management is our carbondatabase, developed in-house at FMG, which providesus with a reporting, control <strong>and</strong> tracking tool forall our activities relating to carbon reduction <strong>and</strong> energyeffi ciency. We first published details of our carbonfoot print in 2008. This was prepared in line with theinternationally acknowledged ) Greenhouse GasProtocol (GHG Protocol), which groups emissions bysources into three so-called scopes.Scope 1 consists of direct emissions caused by ourown energy production; scope 2 covers indirect94
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentq Climate strategyp Resource stewardshipp Noise controlp Biodiversityemissions caused by energy purchased to meet ourown requirements; <strong>and</strong> scope 3 emissions are thosecaused by third parties like the airlines <strong>and</strong> publictransport operators serving our airport. Since 2008,our efforts to reduce our footprint have included measureslike emissions-based l<strong>and</strong>ing charges that aredesigned to encourage organizations at the airport tofollow our lead.Our analysis of all airport-related pollutant emissionsincludes aircraft h<strong>and</strong>ling operations on the ground,the utilization of our infrastructure, <strong>and</strong> even l<strong>and</strong>sidemodes of transport used by passengers, visitors <strong>and</strong>the workforce traveling to <strong>and</strong> from the airport. Emissionsproduced by aircraft are the responsibility of theairlines that operate them. The system boundary thatdetermines which aviation emissions count towardthe airport’s own footprint are defined by the ) l<strong>and</strong>ing<strong>and</strong> takeoff (LTO) cycle. In effect, this means weinclude in our calculations all emissions caused byplanes at altitudes of less than 3,000 feet (914 meters)within the area of our airport.Munich Airport’s carbon footprint in 2011Scope 1Diesel <strong>and</strong> gasolinefor airport vehicles2%Energy generation11%Scope 2Energy purchased3%Scope 3Public transport6%Auxiliary power units<strong>and</strong> engine testing7%LTO cycle63%Diesel <strong>and</strong>gasoline foroutside companies1%Energy purchased byoutside companies7%) GlossaryGreenhouse gas emissions at Munich AirportCO 2(SF 6CH 4N 2O HFCs PCFs) 1Scope 2Indirect emissions fromconsumption of purchased energyScope 1Direct emissions from energyproduction <strong>and</strong> transportationScope 3Indirect emissions from theairport’s area of businessHotel KempinskiSupply ofnatural gas1Carbon equivalent95
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityCarbon emissions at Munich AirportTons per year (scopes 1, 2 <strong>and</strong> 3, excl. LTO cycle, APUs <strong>and</strong>public transport)170,000160,000163,800162,046 160,854 161,238159,089 158,536have control – that is, our scope 1, 2 <strong>and</strong> 3 emissions,excluding the LTO cycle, APUs <strong>and</strong> public transport –for the third straight year. By cutting our carbon emissionsagain, this time by 9,600 metric tons year onyear, we have not just demonstrated that our effortsare paying off, we are also an important step closerto achieving our wider objective of carbon-neutralgrowth by 2020.150,000140,000148,9672005 2006 2007 2008 2009 2010 2011In light of this success, we now want to do more toshare our knowledge <strong>and</strong> experience with other organizationsat the airport <strong>and</strong> help them to improve theircarbon performance, going forward.) GlossarySuccessful recertification of our EMSIn 2011, we succeeded for the third time in successionin gaining accreditation for our environmental managementsystem (EMS) under the rigorous st<strong>and</strong>ards ofEurope’s ) Eco-Management <strong>and</strong> Audit Scheme<strong>and</strong> the global ISO EN DIN 14001 st<strong>and</strong>ard. The certificationreview was conducted by independent environmentalauditors. We use our EMS to gather <strong>and</strong>analyze environmental data on things like energy<strong>and</strong> resource consumption. This gives us a basis onwhich to define <strong>and</strong> deliver wide-ranging measuresintended to further reduce our environmental impacts<strong>and</strong> continuously improve our overall environmentalperformance. Details of the environmental data wecollect <strong>and</strong> the measures we deploy are published inenvironmental statements. Our subsidiary Allresto<strong>and</strong> the Kempinski Hotel Airport München now alsoconduct environmental audits <strong>and</strong>, since 2008, haveboth been certified to the above st<strong>and</strong>ards. FMG subsidiariesaerogate <strong>and</strong> Cargogate are also due to rollout validated environmental management systems inthe near future.The recertification process at FMG <strong>and</strong> interim auditsat participating subsidiaries in 2011 identified no in -stances of non-compliance with statutory environmentalregulations.A significant drop in carbon emissionsAlthough around 38 million passengers used MunichAirport’s infrastructure in 2011, we managed to significantlyreduce the carbon output from all the plants,installations, buildings <strong>and</strong> vehicles over which weAnalysis of airport buildingsThrough our carbon management initiatives in recentyears, we have identified a range of measures to cutcarbon <strong>and</strong> boost efficiency – measures that, to date,have delivered around 16,000 tons of carbon savingsat Munich Airport. However, to offset future increasesin carbon emissions caused by our projected growth,we need to do more. This is why we launched a newprogram in 2011 to systematically survey <strong>and</strong> reassessexisting buildings with a high energy footprint inan effort to identify additional potential savings. Webegan with Terminal 1, our cargo building, our formerair mail processing center, <strong>and</strong> Lufthansa’s FlightOperation Center.The survey centered primarily on power consumption,the main cause of carbon emissions. Our initialfindings indicate that a target of reducing consumptionby another 5–10 percent on top of the savingsalready achieved in recent years is realistic. Analyseshave shown that the greatest savings are likely to beachieved through changes to lighting systems (upto 80 percent) <strong>and</strong> to material h<strong>and</strong>ling systems (asmuch as 55 percent).In 2011, we completed our retrofit of LED lighting inparking garage P20, an initiative that will cut powerrequirements by 39 percent <strong>and</strong> deliver total carbonsavings of 860 tons a year. We also modernized theelevators in P20, equipping them with regenerativefeedback units that convert braking energy into elec -tric power <strong>and</strong> feed it back into the grid. This, too, willreduce our annual carbon output by a further 150 tons.96
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionq Climate strategyp Resource stewardshipp Noise controlp BiodiversityFinancial reviewSustainable developmentIn another initiative, we have started replacing thev-belts in the heating, ventilation <strong>and</strong> air-conditioningsystems’ electric drives with more efficient flat belts.This could save as much as 500 tons of carbon emissionsa year.More transparency through metermanagementWe are also in the process of overhauling the airport’smeter management system. Extensive technicalchanges to meter-reading, including the addition ofmore ) smart meters to permit remote readouts, willhelp us to record power transmissions <strong>and</strong> consumptionmore transparently in the future. At the same time,we are optimizing our meter management processes.This will make it easier for us to identify potential sav -ings <strong>and</strong> to carefully monitor <strong>and</strong> safeguard those sav -ings already achieved. Meter management is be comingone of the most important factors in our effortsto manage energy <strong>and</strong> carbon effectively at MunichAirport.Renewed accreditation for our carbonreductionFor the second time now, our efforts to manage <strong>and</strong>reduce carbon emissions at Munich Airport have beenofficially certified under the highly regarded AirportCarbon Accreditation program operated by the AirportsCouncil International, earning us a new certificate inMarch 2011 for our performance in 2010.There are four different levels in the Airport CarbonAccreditation program, <strong>and</strong> Munich Airport again re -ceived level 3 accreditation. This is awarded to air portsthat are in the optimization phase, defined as beingin the process of taking effective steps to achieve alasting reduction in emissions <strong>and</strong> to involve otherorganizations on site in their initiatives. Level 1 cer -tification is given to airports that are mapping <strong>and</strong>measuring carbon emissions, <strong>and</strong> level 2 to thosemanaging carbon to reduce their footprint. Level 3+certificates are awarded to those that can show theyare carbon-neutral. Airport Carbon Accreditation is avoluntary program in which all commercial airports inEurope can elect to take part.) Glossary) www.airportcarbonaccreditation.org97
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility) Glossary) Our noise <strong>and</strong> emissionsreports are availablehere:www.munich-airport.com/impacts) Glossary) You can find out moreabout air quality here:www.munich-airport.com/air) www.munich-airport.com/environmentalresearchTogether, the 56 airports that have signed up to thepro gram to reduce their carbon footprints h<strong>and</strong>learound 52 percent of Europe’s passenger traffic. Theircombined efforts currently cut carbon emissions by730,000 tons a year.Air pollutants at prior year levelsA federal government ordinance 1 from August 2010imposes increasingly strict statutory limits on nitrogendioxide (NO 2 ) levels. The limit is currently set at40 micrograms per cubic meter of air, averaged outover the year.In 2011, levels of nitrogen dioxide <strong>and</strong> ) particulatematter at Munich Airport were largely in the low-tomoderaterange <strong>and</strong> broadly the same as in prior years.The mean level of nitrogen dioxide recorded at ourmain measuring station to the east of the airport overthe course of the year was 31 micrograms per cubicmeter, close to the levels of 29–30 micrograms measuredbetween 2007 <strong>and</strong> 2010.Pollutant levels recorded at the main measuring station<strong>Annual</strong> mean levels in μg/m³2009 2010 2011 Limit293031NO 2concentration(nitrogen dioxide)40 40202118PM 10concentration(particulate matter)Our second measuring station, which is on the airport’swest side <strong>and</strong>, like our main station, extremelyclose to the airport, measured levels averaging 28 microgramsper cubic meter, compared to 27–28 microgramsper cubic meter from 2007 to 2010. Althoughthe traffic volume at Munich Airport increased againin 2011, the levels recorded are roughly the same asin previous years.Nitrogen dioxide levels at the airport are similar tothose measured in German towns like Ingolstadt,Bamberg or Würzburg. Levels in rural towns are typicallylower, whereas levels in downtown Munich aresignificantly higher than at the airport. The readingsfrom both measuring stations are retrieved automaticallyevery day over a remote data link <strong>and</strong> are publishedin monthly ) noise <strong>and</strong> emissions reports onthe Internet.The mean annual level of particulate matter (PM 10 )measured during 2011 was 18 micrograms per cubicmeter. In comparison, mean levels between 2007 <strong>and</strong>2010 ranged from 18 to 21 micrograms per cubic me -ter. Levels of other pollutants caused by airport operations<strong>and</strong> aviation are generally very low. We also mon -itor these substances <strong>and</strong> publish the recorded levelsin our monthly noise <strong>and</strong> emissions reports.Honey monitoring shows no impact onqualitySince 2008, Flughafen München GmbH has been testingfor pollutants in honey produced by bee coloniessited at the perimeter fence <strong>and</strong> along arrival <strong>and</strong> departureroutes. We check the airport colonies’ honeyfor traces of substances like heavy metals <strong>and</strong> polycyclicaromatic hydrocarbons (PAHs) that could becaused by air traffic. We additionally test pollen <strong>and</strong>wax samples – the latter because fat-soluble PAHscould accumulate in wax without actually occurringin measurable quantities in the honey. In 2011, themonitoring program confirmed prior years’ findings,which showed that the heavy metals <strong>and</strong> PAHs in thehoney, wax <strong>and</strong> pollen were well below guideline lev -els <strong>and</strong> limits. This indicates that airport operations arenot impacting on the quality of the honey.Biomass-powered heatingMunich Airport covers around 75 percent of its annualheating energy requirements through its own highlyefficient on-site trigeneration plant that combinescooling, heating <strong>and</strong> power generation in a single facility.Barring a minimal amount of energy supplied bypeak boilers, the airport meets the remainder of itsheating needs by purchasing district heat, supplied bya local utility company in Freising via a pipeline.1Thirty-ninth Ordinance on the Implementation of the Federal Pollution ControlAct (Ordinance on Air Quality St<strong>and</strong>ards <strong>and</strong> Emissions Limits), Section 3,dated August 2, 201098
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionq Climate strategyp Resource stewardshipp Noise controlp BiodiversityFinancial reviewSustainable developmentSince early 2011, 50 percent of our district heat (roughly15 GWh) is generated by a new ) biomass firedcogeneration plant in the town of Zolling. The heat generatedfrom biomass causes no carbon emissions,reducing our footprint for purchased heating energyby almost 3,500 tons. We have secured a long-termsupply option to ensure that we can continue to useenergy from this source for the next few years.The combination of district heat generated from biomass<strong>and</strong> our own trigeneration solution means thatthe airport has an exceptionally efficient <strong>and</strong> climatefriendlyenergy supply.A new energy strategy for 2030Rising passenger numbers, plans to exp<strong>and</strong> the air -port, <strong>and</strong> our target of carbon-neutral growth will re -quire that we extend our energy supply system in thenear future. We therefore began in June 2010 to definea new energy supply strategy for the year 2030. Thisstrategy builds on a forecast of the energy we willneed for electric power, heating <strong>and</strong> cooling, <strong>and</strong> weare currently analyzing <strong>and</strong> classifying our current build -ings to extrapolate the data we need for planning.One way in which we can achieve greater energyefficiency is through new builds with 30–40 percentlower energy consumption than our current buildings.We can also introduce energy savings of more than10 percent in our current facilities.As part of our 2030 energy strategy, we have prepareda projection of our energy requirements in 2025. Thisis based on figures from 2007, which are included herein parentheses.Energy requirements in 2025Energy p.a.PowerElectric power 316 GWh (227) 54 MW (34)Heating 185 GWh (129) 66 MW (59)Cooling 53 GWh (38) 35 MW (25)We are in the process of assessing various ways tocover these energy requirements. Besides the optionof purchasing all our energy from outside utilities (thisis our comparison baseline), we are exploring <strong>and</strong>analyzing in detail the technical feasibility, costs <strong>and</strong>carbon emissions of various cogeneration options aswell as more extensive use of renewables.For the time being at least, it looks as if we couldachieve the best outcome by exp<strong>and</strong>ing our on-sitegenerating capacity on a modular basis to a level of32 megawatts electric (MWe) by means of combinedcooling, heat <strong>and</strong> power generation using internalcombustion engines.Focus on sustainable buildingAt Flughafen München GmbH, we are committed tosustainable construction, which is why the companyis a member of the German Sustainable Building Coun -cil (DGNB). To underscore this commitment still further,we have now trained a number of FMG employeesas DGNB auditors <strong>and</strong> energy consultants, <strong>and</strong> inJuly 2011 hosted a sustainability fair over several daysat which we demonstrated how we put the principlesof sustainable building into practice.Also in 2011, we published a manual on energy design<strong>and</strong> sustainable building, prepared by our Planning <strong>and</strong>Construction division, which maps out the planning<strong>and</strong> coordination processes in construction projects<strong>and</strong> sets the regulations <strong>and</strong> specifications for buildingprojects.) GlossaryTraining courses are provided to all em ployees workingin this field to ensure that processes <strong>and</strong> guidelinesin the manual are implemented cor rectly in ourconstruction projects.99
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility) www.dgnb.deThrough the rules <strong>and</strong> guidance in this manual, weaim to achieve reductions in carbon emissions innew builds by up to 40 percent compared to currentbuildings on campus. We are also following theprocedures for sustainable building described in themanual in all of the buildings we operate jointly withDeutsche Lufthansa at Munich Airport.One key focus in sustainable building is on life cycleassessments. The benefit of LCAs is that they showhow higher initial investment during the creation ofa building can be offset in the longer term by lowerfollow-up expenses in the form of running costs.Our second freight-forwarder facility was commissionedto the specifications in our own building manual<strong>and</strong> the German Sustainable Building Council’s st<strong>and</strong> -ards. A pre-check conducted to verify compliance withthe sustainability targets set under the DGNB certificationsystem showed that the facility, if built asplanned, would qualify for ) silver st<strong>and</strong>ard certification.In 2010, we launched an architectural competition todesign a children’s daycare center for Munich Airport.A core requirement for the designs submitted wasthat they should conform to sustainable constructionprinciples. The plans based on the winning designhave now been optimized for cost <strong>and</strong>, according to apre-check, the building could achieve bronze or silvercertification.Our control point for persons <strong>and</strong> goods in Hangar 3is another example of sustainable building practicesat work. It is the first structure on campus with a heatpump system for exploiting geothermal energy, <strong>and</strong>during the last winter it withstood its first real testwith ease.Information events: Raisingsustainability awarenessCombating climate change is a challenge that calls forconcerted action, because our ability to lessen ourenvironmental impacts as an organization dependscrucially on the buy-in of our workforce.100
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionq Climate strategyp Resource stewardshipp Noise controlp BiodiversityFinancial reviewSustainable developmentTo boost awareness among our workforce, we introduceda multistage sustainability education programin 2009: Twenty-one employees from various unitswithin the Group were trained as trainers <strong>and</strong> in 2010<strong>and</strong> 2011 held courses <strong>and</strong> information events on sustainabilityin their own companies <strong>and</strong> departments.By the end of 2011, 1,774 employees had attendedthe training program.At a number of information events centering on theenvironment, carbon reduction <strong>and</strong> resource conservationin 2011, we presented audiences with a rangeof general facts <strong>and</strong> figures on climate change <strong>and</strong> exploredhow it applies specifically to our organization<strong>and</strong> divisions. Our primary goal was to show ways inwhich individuals can make a difference by reducingthe resources they consume in their day-to-day work.We also continued to solicit <strong>and</strong> pool ideas that canhelp us cut our carbon footprint, <strong>and</strong> we have an inhousesuggestions scheme in place which rewardsemployees for the ideas they put forward.Green IT: A raft of highly effectivemeasuresThe 2,500 or more desktop computers with monitorsin operation at Munich Airport, along with scores ofservers, notebook PCs <strong>and</strong> printers, a number of datacenters, <strong>and</strong> a host of other equipment, including severalthous<strong>and</strong> displays <strong>and</strong> information systems <strong>and</strong>2,000 surveillance cameras, consume copious quantitiesof power. To keep power consumption in check,FMG’s Information Technology division engages in awide range of measures aimed at boosting efficiency<strong>and</strong> delivering valuable energy savings.One focus of our efforts is on server systems, <strong>and</strong> weare gradually replacing physical servers with ) virtualservers. In 2011 alone, we virtualized 80 servers, mi -grating them from multiple hardware units to one majorserver device with the same net performance – amove that is saving power <strong>and</strong> reducing costs. Wenow operate just two big servers running multiple virtualmachines, effectively saving around 300 watts ofpower for each system virtualized. Because serversare always on, 24 hours a day, virtualization is savingaround 204,984 kilowatt hours of power <strong>and</strong> avoiding123 tons of carbon emissions a year.Storage systems in data centers have now reached ahuge scale, not least because data security is crucial<strong>and</strong> relies on highly complex storage solutions. Byswitching to the most recent generation of storagesystems, we have been able to cut our power requirementsat each of our data centers by 4.5 kilowatts tocreate an overall annual saving of 78,840 kilowatthours <strong>and</strong> 47 tons of carbon.Bringing down the energy consumed by data centerhardware also has an additional benefit: The centersare air-conditioned, <strong>and</strong> the more we reduce the powerdraw <strong>and</strong> the amount of waste heat, the less energyis required to cool them. We are also modifying thestructural design of our data centers to optimize coolingefficiency.We use surveillance cameras to help secure the airport,<strong>and</strong> these have now risen in number to 2,000.Even so, we have managed to reduce their powerconsumption by replacing older systems with a highlyadvanced, fully digital, networked system. Comparedto its predecessor, the new system saves severaldozen tons of carbon emissions.Upgrading information displays in Terminal 1 modulesB though E with slightly smaller but fully graphical panelsis saving us around 9,000 kilowatt hours of power<strong>and</strong> avoiding more than five tons of carbon emissionsa year. Our IT division is currently also working on asolution that will allow display systems to be partiallyshut down during off-peak hours, which will help tocurb our power requirements even further.) Glossary101
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityResource stewardshipOutst<strong>and</strong>ing water qualityMunich Airport sources its potable water from Moosrainwater utility company, which extracts it from sixbore holes at depths of between 94 <strong>and</strong> 160 meters.The bore holes are located in source water protectionareas at Obere Point <strong>and</strong> Oberdingermoos in the Ober -ding municipality. The water is subject to strict monitoring<strong>and</strong> controls, <strong>and</strong> is of the highest quality. Atpresent we do not use any rainwater as service waterin our facilities.Protecting drinking water resourcesUntil recently, our trigeneration plant at Munich Airportneeded around 170,000 cubic meters of potable watera year to cool its chillers <strong>and</strong> generator sets. Becausethis water is extracted from tertiary strata <strong>and</strong> is a valuable<strong>and</strong> scarce commodity, the local water authoritieshave stipulated that water used for closed-circuit cool -ing must now be drawn from quaternary strata closerto the surface. To comply with this requirement we in2010 drilled a bore hole close to the airport’s energycenter from which we now extract quaternary ground -water to supply the energy center. Since this solutionwas implemented, the center has not used any potablewater for cooling.Analysis of rainwaterWe check the quality of rainwater at Munich Airportby testing 13 individual <strong>and</strong> aggregate parameters.There are no binding guidelines as such when itcomes to assessing rainwater quality. However, becauserainwater drains into the ground <strong>and</strong> becausedrinking water is often extracted from the groundwater,we take Germany’s most recent Drinking WaterOrdinance as a guide. In 2011, rainwater tests atMunich Airport showed that, with the exception ofa few pH values that were too low, all of the parameterswere within the limits set by the Ordinance.Wastewater treatmentAircraft need to be washed at regular intervals. Thisis not just for safety reasons, but also because dirtaccumulating on the skin causes drag <strong>and</strong> increasesfuel consumption. The wastewater from aircraft wash -ing contains detergent residue, oil, kerosene <strong>and</strong>heavy metals. The water is fed from our three maintenancehangars through a network of pipes to ourown wash-water treatment plant. Once cleaned <strong>and</strong>processed, the water is tested for quality, given afinal check <strong>and</strong> then fed into the sewage system. Wetest the water regularly to ensure that the residualpollutant levels are within the statutory limits definedfor wastewater.Total fresh water consumption 1Liters per workload unitTotal wastewater discharge 1, 2Liters per workload unit26.825.622.263.959.955.72009 2010 20112009 2010 20111Includes all companies on campus2Wastewater discharged to treatment facility comprises domestic wastewater,deicing water <strong>and</strong> rainwater.102
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionP Climate strategyq Resource stewardshipp Noise controlp BiodiversityFinancial reviewSustainable developmentAll of the airport’s wastewater, including meltwatercontaining deicing agent that drains off our runways<strong>and</strong> aprons in winter, is treated at a processing facilityin nearby Eitting, operated by the local Erdinger Moossewage company <strong>and</strong> specially exp<strong>and</strong>ed with theairport’s support. Rainwater runoff from runways inthe summer is relatively clean <strong>and</strong> can be allowed todrain laterally off paved areas; some goes into the livetopsoil, <strong>and</strong> some flows via depressions in the terraininto drainage ditches.Deicer recyclingAt Munich Airport, most aircraft ) deicing is carriedout by mobile deicing units at specially designatedareas close to the runway heads. These areas areequipped with a system to trap wastewater from de -icing operations <strong>and</strong> channel it into underground storagetanks. There the water is cleaned mechanically <strong>and</strong>chemically, then distilled <strong>and</strong> turned back into deicingfluid by means of additives. This process of recyclingenabled us to treat <strong>and</strong> reuse 65 percent of the deicingfluid used during the 2010–2011 winter.Waste avoidance, recycling <strong>and</strong> disposalThe primary goal of waste management is to avoidgenerating waste. Under our in-house procurementguidelines, products that we as an organization purchasemust satisfy environmental as well as economicrequirements, <strong>and</strong> should be as eco-friendly as possible,with a long service life.Waste reduction <strong>and</strong> recycling, too, are important,alongside waste avoidance. Only waste that cannotbe recycled or processed for energy recovery is sentfor permanent, environmentally compatible disposal.A basic requirement in recycling is to strictly separaterecoverable fractions from waste. To accomplish this,we have six waste collection points on campus wherespecially trained staff extract <strong>and</strong> sort the various materials<strong>and</strong> have them collected for processing by certifiedwaste transport <strong>and</strong> disposal operators. We alsooptimize waste logistics – by maximizing containerloads <strong>and</strong> keeping transport distances as short as wecan so as to avoid harmful emissions like CO 2 .) Glossary103
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityIn our office buildings, we introduced four-segmentwaste bins in 2008 to encourage staff to separatepaper, mixed recoverables, organic waste <strong>and</strong> residualwaste at source <strong>and</strong> thus help streamline the recyclingprocess.Under EU regulations 1 , food waste from aircraft servinginternational destinations is classed as category 1high-risk material, even when combined with otherwaste collected during cabin cleaning, <strong>and</strong> may onlybe disposed of in registered waste incineration plants.Following a decision by a local Erding-based organizationspecializing in animal carcass disposal, we putout a new tender for mixed-waste incineration services,<strong>and</strong> in January 2011 a specialist waste operatorwas contracted to organize <strong>and</strong> carry out the disposalprocess. Food waste is incinerated in Munich’s thermalpower plant, an accredited disposal facility.Hazmat controls <strong>and</strong> trainingAt Munich Airport, our operations involve a number ofmaterials that are potentially harmful to the environment<strong>and</strong> water supplies <strong>and</strong> so have to be moved offsite. These materials must be marked as hazardousduring transportation. We as a company are subjectto the same regulations as other organizations involvedin transporting hazardous goods by rail, roador air <strong>and</strong> are thus required by law to have at least onehazardous materials supervisor. Flughafen MünchenGmbH appointed its first hazmat officer in 2007; however,from June 15, 2011, we outsourced this role tothe company DEKRA Automobil GmbH, as permittedunder the provisions of Sections 1–8 of Germany’sHazardous Materials Officer Ordinance. During thecourse of 2011, 144 metric tons of waste classed ashazardous material were transported from the airportfor disposal, compared to around 156 tons in 2010.As in prior years, we conducted spot checks in 2011on the vehicles used to transport hazardous substancesto ensure that they were up to code. We identifiednone that were unroadworthy or not fully operational.We also provided employees with regular training onh<strong>and</strong>ling hazardous substances in accordance withstatutory requirements.In 2011, no penalties or fines were issued on accountof improper h<strong>and</strong>ling of hazardous materials, nor werethere any accidents involving hazardous substances,such as oil, fuel or chemicals.1Regulation (EC) 1069/2009, October 21, 2009 (Official Journal of the EuropeanUnion L 300)104
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionP Climate strategyq Resource stewardshipq Noise controlp BiodiversityFinancial reviewSustainable developmentNoise controlSignificant reduction in noise levelsSince the advent of jet engines in commercial aviationmore than 40 years ago, aircraft noise levels duringtakeoff <strong>and</strong> l<strong>and</strong>ing operations have been cut by al -most 90 percent, thanks largely to low-emission enginetechnology <strong>and</strong> improved aerodynamics. Aircrafttypes undergo noise certification based on a set ofrules issued by the ) International Civil AviationOrganization (ICAO). These rules are applied by aviationauthorities issuing traffic permits <strong>and</strong> ) typecertificates to new aircraft <strong>and</strong> require that planeshave a valid noise certificate.The most recent <strong>and</strong> stringent noise limits for jet <strong>and</strong>propeller aircraft were set in September 2001. All aircrafttype-certified after January 1, 2006, are requiredto comply with these limits. This requirement <strong>and</strong> theban imposed on noisy aircraft in Europe in 2002 haveled to a significant improvement in the aviation noisesituation.A joint aim: Further reductions in aircraftnoiseThe Commission on Aviation Noise <strong>and</strong> Air Pollutionat Munich Airport is a body formed to promote a con -tinued reduction in aircraft noise. The Commission ismade up of representatives of the airport, air trafficcontrol operator Deutsche Flugsicherung GmbH (DFS),the airlines, the local region <strong>and</strong> government offices,<strong>and</strong> meets at regular intervals. Parallel to these meetings,members are also in constant contact on aviationnoise issues. The members of the Commission havevarious means of managing noise – DFS through care -ful planning of arrival <strong>and</strong> departure procedures, theairlines through efforts to reduce fleets’ noise emissions(be it for economic or environmental reasons),<strong>and</strong> Flughafen München GmbH through the implementationof statutory regulations <strong>and</strong> requirementsconcerning aviation noise, among other things.Active noise mitigationTo reduce the impact of aviation noise on the airport’sneighboring communities, FMG is committed to doingmore than just fulfill statutory regulations to improvethe noise situation. We are currently discussing <strong>and</strong>reviewing a number of active anti-noise measures –such as noise avoidance <strong>and</strong> reduction at source <strong>and</strong>redistribution of noise – which could help diminishnoise impacts, even in instances where the de factobenefits might only be small. These measures includeoptimizing aircraft departure procedures (by introducingsteeper climb-outs), making greater use of the) Continuous Descent Approach method, whichis quieter than conventional l<strong>and</strong>ing approaches, <strong>and</strong>changing the approach slope angle so that planes areat higher altitudes when they fly over the airport’swider surrounding area. Other options are to alterair routes to ease the noise burden on individual locations<strong>and</strong> settlements, optimize runway use to limitnoise impacts, especially at night, promote advancementsin aircraft engine design, <strong>and</strong> retrofit aircraftfleets.All of these potential measures, which require carefulconsideration by Flughafen München GmbH, airtraffic control <strong>and</strong> the noise commission, only makesense if they can be implemented multilaterally <strong>and</strong>can genuinely deliver improvements for airport neighbors.Aviation noise levels unchangedIn spite of a 5.1 percent rise in aircraft movementscompared to 2010, around half of the ) continuoussound levels (daytime Leq3 <strong>and</strong> night time Leq3) recordedat four measuring stations on our main departureroutes during the busiest six months of the yearwere essentially the same, year on year. Differenceswere largely due to the fact that more planes took offin an easterly direction in 2011 than in 2010.) www.munich-airport.com/aircraft-noise) Glossary) Glossary) Glossary) Glossary105
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityContinuous sound level (Leq3) in dB(A) recorded at four measuring stations on main departure routes during the sixbusiest months 12011 2010 2009Night Day Night Day Night DayBr<strong>and</strong>stadel 47 58 48 58 46 58Pallhausen 42 55 42 55 40 55Reisen 50 56 50 55 48 55Viehlassmoos 43 56 43 55 41 541 Since the enactment of new aviation noise legislation in Germany on June 7, 2007, the key metric applied in assessing aviation noise exposure has been theenergy-equivalent continuous sound level Leq3 during the day <strong>and</strong> at night. Exposure assessments also take the noise level frequency at night into account. Becauseof variance in the operating direction, changes to departure routes, changes in route usage, <strong>and</strong> differences in operating times on account of closures (dueto extreme weather or technical problems, for example), the figures for different years are not directly comparable. Detailed monthly noise figures recorded at ourfixed measuring stations can be found on the ) Internet.) You can read more aboutaircraft noise control <strong>and</strong>measurements here:www.munich-airport.com/aircraft-noiseThe daytime Leq3 at our Reisen <strong>and</strong> Viehlassmoosmeasuring stations was 1 dB(A) higher in 2011; at ourBr<strong>and</strong>stadel <strong>and</strong> Pallhausen stations it was the sameas a year earlier. There was no change in the nighttimeLeq3 at our Pallhausen, Reisen und Viehlassmoosstations, <strong>and</strong> at Br<strong>and</strong>stadel it was actually 1 dB(A)lower than in 2010.Managing aviation noise complaintsAs part of our wider complaints management system,we operate a phone line specifically for neighbors affectedby aviation noise. The phone line enables us torespond directly to complaints concerning individualnoise events <strong>and</strong> to answer questions concerning theaviation noise situation at the airport as a whole.We monitor aircraft noise at the airport constantly asthis provides us with the data we need to track aviationnoise patterns, determine aircraft noise classes forour noise-based l<strong>and</strong>ing charges, <strong>and</strong> to answer inquirieson noise. Noise levels are monitored througha network of 16 measuring stations at fixed locations,plus three mobile units. The figures recorded are publishedin monthly reports on the airport’s website.Mobile aviation noise monitoring serviceFMG voluntarily conducts mobile aviation noise measurementsfor local communities on request. Thesemeasurements enable us to provide accurate noiseinformation for locations where we have no fixedmeasuring stations.106
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionP Climate strategyP Resource stewardshipq Noise controlp BiodiversityFinancial reviewSustainable developmentIn 2011, we conducted seven sets of mobile measurementsover a total of 278 days. For the first time, theseincluded the towns of Hochbrück, Gelting <strong>and</strong> Kirchseeon.Repeat measurements were taken at sites inHaimhausen, Eittingermoos, Buch am Erlbach, <strong>and</strong>Grünbach, allowing us to document changes in theirnoise levels.Noise quota use: 69 percentThe night-flight curfew in force at Munich Airport in -cludes a noise quota computed on the basis of aircrafttypes <strong>and</strong> sizes <strong>and</strong> the number of aircraft movements.In 2011 we used up 69 percent of our allotted quota.During the year, the permitted average nighttime continuoussound level of 50 dB(A) was never exceededat any point where flight paths intersect the perimeterof the combined daytime <strong>and</strong> nighttime noisecontrol zone.Emissions-based l<strong>and</strong>ing feesParallel to its noise-dependent charges, FlughafenMünchen GmbH introduced emissions-based l<strong>and</strong>ingfees on January 1, 2008. The purpose of this feepolicy is to reduce the amounts of ) nitrogen oxides<strong>and</strong> uncombusted hydrocarbons emitted by aircraftengines. This is making a significant contribution tobetter local air quality in the area around the airportwhile creating a long-term incentive for engine <strong>and</strong>aircraft makers to invest more in the development oflow-emission aircraft.) GlossaryAsenkofenViehlassmoosPallhausenPullingAttachingEittingGlaslernFahrenzhausenMassenhausenAcheringSchwaigReisenNeufahrnHallbergmoosMintrachingBr<strong>and</strong>stadelOur 16 fixed measuring stations are all within a radius of 20 kilometers of the airport, at sites selected in collaboration with the noise commission.The stations are sited close to approach <strong>and</strong> departure routes <strong>and</strong> to towns <strong>and</strong> villages affected by aircraft noise. To ensure meaningfulresults, stations named after their nearest town or village are located as close as possible to flight paths <strong>and</strong> residential buildings.107
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityBiodiversity) www.munich-airport.com/l<strong>and</strong>scape) Glossary “Biodiversity”Compensatory mitigation sitesIn what is referred to as Zone III in the airport’s sur -rounding area, Flughafen München GmbH has createdjust over 350 hectares of compensatory mitigationsites. Of these, there are seven hectares in the Oberdingermoosconservation area, a further 18 hectares inFreising <strong>and</strong> Erding’s nature preserves, <strong>and</strong> 75 hectaresin the Freisinger Moos <strong>and</strong> Nördliches ErdingerMoos bird reserves.Zone II, comprising 250 hectares along the airport’sperimeter, integrates the airport into the surroundingl<strong>and</strong>scape; it contains copses <strong>and</strong> hedgerows, fields<strong>and</strong> pasturel<strong>and</strong>, <strong>and</strong> a number of man-made watercourses,including the airport’s south <strong>and</strong> east contain -ment ditches, north diversion ditch, <strong>and</strong> north receivingditch. Much of the airport’s perimeter zone is partof the Nördliches Erdinger Moos bird reserve.As part of an environmental l<strong>and</strong> project, we are holdingaround 100 hectares in reserve for the creation offurther compensatory mitigation sites. This l<strong>and</strong> is acknowledgedby conservation experts as suitable <strong>and</strong>will be used for this purpose as necessary. Like ourexisting sites, this hectarage, too, is spread acrossthe aforementioned conservation areas.Continuous maintenance <strong>and</strong>developmentFMG’s compensatory mitigation sites comply withrequirements issuing from a range of zoning approvals<strong>and</strong> amendments, <strong>and</strong> are reviewed by publicauthorities to ensure that they are implemented <strong>and</strong>maintained correctly. Maintenance <strong>and</strong> developmentplans <strong>and</strong> targets have been defined for the varioussites <strong>and</strong> biotopes in collaboration with the natureconservation authorities, <strong>and</strong> will help to safeguardthe variety of species <strong>and</strong> biodiversity. Our broaderoverall objective is to maintain the variety of l<strong>and</strong> use<strong>and</strong> locations while taking steps to preserve highlyendangered habitats within the natural environment,such as moor grass pastures, sedge l<strong>and</strong> <strong>and</strong> lownutrientgrassl<strong>and</strong>. Other objectives include creatingprotected open <strong>and</strong> expansive pasture complexes<strong>and</strong> exp<strong>and</strong>ing small areas of existing fenl<strong>and</strong>, whichare in particular need of protection. The maintenance<strong>and</strong> development plans also include specific instructionson how to mow meadowl<strong>and</strong> <strong>and</strong> wetl<strong>and</strong> areas,along with exact information on when to conductrejuvenation work <strong>and</strong> thin out hedges <strong>and</strong> copses.Better ecological valueStructural elements such as trees, hedges <strong>and</strong> fallowstrips planted or created in mitigative areas in the na -ture preserves help to promote <strong>and</strong> protect the na -tural variety <strong>and</strong> character of the l<strong>and</strong> <strong>and</strong> are of immensevalue for local species diversity. Overall, themeasures implemented under our l<strong>and</strong>scape conservationplans are having a highly positive impact, pre -serving <strong>and</strong> protecting habitats for plants <strong>and</strong> animals,especially some of the rare <strong>and</strong> threatened speciesonce typical for the local natural environment. In addition,programs to set up <strong>and</strong> exp<strong>and</strong> wet, mesic <strong>and</strong>low-nutrient meadowl<strong>and</strong> are helping us to accom-Airport’s total areaInside perimeter fence (Zone I): 1,575 hectaresAdditional green areasCurrent: 700 hectaresPaved areas632 hectaresUnpaved areas943 hectaresEco reserve forfuture expansion100 hectaresCompensatory mitigationsites in surroundingarea (Zone III)350 hectaresGreen belt aroundairport perimeter(Zone II)250 hectares108
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionP Climate strategyP Resource stewardshipP Noise controlq BiodiversityFinancial reviewSustainable developmentplish our primary conservation goal of reintroducing<strong>and</strong> developing former types of l<strong>and</strong> use <strong>and</strong> biotopesin the Freisinger Moos <strong>and</strong> Erdinger Moos fenl<strong>and</strong>s.These efforts are creating greater ecological value inthe conservation areas around our airport.Near-natural habitats, such as streams <strong>and</strong> rivers, riverbanks<strong>and</strong> s<strong>and</strong>bars, fens <strong>and</strong> marshl<strong>and</strong>, beddingmeadows <strong>and</strong> wet meadows, wet <strong>and</strong> alluvial woodl<strong>and</strong>,<strong>and</strong> low-nutrient meadowl<strong>and</strong> are all protectedunder conservation legislation. Areas like these arecommon at our compensatory mitigation sites <strong>and</strong>, inmany instances, the care <strong>and</strong> maintenance work wecarry out is intended expressly to protect them <strong>and</strong>enhance their ecological value.Protecting threatened bird speciesThe Freisinger Moos bird reserve helps populationsof protected European bird species to survive <strong>and</strong> re -cover. These species include ground-nesting birds likequail, lapwing, the western curlew, the red-backedshrike <strong>and</strong> the bluethroat. L<strong>and</strong> owned by FlughafenMünchen GmbH is mown <strong>and</strong> maintained in such away that it provides a habitat that suits birds like these<strong>and</strong> protects threatened species. The low-nutrientmeadows set up as a mitigative site at Langer Haken,a former glider aerodrome, are especially importantfor the long-term protection of a small populationof the western curlew, which is currently at risk ofextinction.The open l<strong>and</strong> <strong>and</strong> spinneys of the Nördliches ErdingerMoos bird reserve are also managed <strong>and</strong> maintainedto provide a habitat that suits protected Europeanground-nesting birds like the blue-headed wagtail,corncrake, lapwing <strong>and</strong> western curlew, as well asspecies like the oriole, pied flycatcher, red-backedshrike <strong>and</strong> bluethroat.At the Oberdingermoos nature preserve, there arevaluable tracts of low-nutrient meadowl<strong>and</strong>, rich inflowering plant species, that are reminiscent of oldertypes of l<strong>and</strong> use. These, too, are carefully l<strong>and</strong>scaped<strong>and</strong> maintained to provide the right habitats to protectkey European bird species like the tree pipit, redstart,lesser spotted woodpecker, red-backed shrike, oriole<strong>and</strong> river warbler.109
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityPpNon-AviationAviation52%contribution toFMG Group sales48%€144.3millionQFiscal 2011 was theFMG Group’s mostsuccessful year yet.investment volume110
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentp Supervisory board’s reportp Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportFinancial review112 Supervisory board’s report113 Consolidated management report128 Consolidated financial statements128 Consolidated balance sheet130 Consolidated income statement131 Consolidated cash flow statement132 Statement of changes in consolidated equity133 Annex to the consolidated financial statements147 Independent auditor’s report111
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilitySupervisory board’s reportThe supervisory board was informed regularly <strong>and</strong> indetail by executive management in written reports<strong>and</strong> at meetings about the company’s situation, itsdevelopment, <strong>and</strong> important business events. Onthe basis of the reports <strong>and</strong> the information received,the supervisory board oversaw the management ofthe company’s business <strong>and</strong> made such decisionsas it was called upon to make in accordance with itsstatutory responsibilities.The yearend accounts as at December 31, 2011, <strong>and</strong>the consolidated management report on FlughafenMünchen GmbH <strong>and</strong> its group of companies presentedby executive management have been audited<strong>and</strong> approved by Deloitte & Touche GmbH, the appointedauditors. Having conducted its own review,the supervisory board acknowledges the auditors’findings <strong>and</strong> raises no objections. In accordance withSection 42a, Paragraphs 2 <strong>and</strong> 4 of Germany’s LimitedLiability Companies Act (GmbHG) <strong>and</strong> Section 171,Paragraph 2 of Germany’s Stock Corporations Act(AktG), the board approves the yearend accounts ofFlughafen München GmbH <strong>and</strong> the FMG Group. Thesupervisory board proposes that the shareholdersendorse the yearend accounts of Flughafen MünchenGmbH <strong>and</strong> the FMG Group.The supervisory board also wishes to express itsgratitude <strong>and</strong> respect for the work carried out <strong>and</strong>the successes achieved by the company’s executivemanagement <strong>and</strong> employees in fiscal 2011.Munich, July 5, 2012Dr. Markus SöderChairman of the Supervisory BoardFlughafen München GmbHIn fiscal 2011, Minister of State Georg Fahrenschonstepped down from the supervisory board. The boardwould like to thank him for his expert <strong>and</strong> committedservice to the company as board chairman.112
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewq Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportSustainable developmentConsolidated management report for 2011The object of the Flughafen München Group is tooperate Munich Airport <strong>and</strong> to pursue ancillary linesof business. The FMG Group comprises FlughafenMünchen GmbH, 17 subsidiaries <strong>and</strong> special purposeentities, <strong>and</strong> two associated companies. In fiscal 2011,the company MUCGround Services Flughafen MünchenGmbH, Freising, was merged into AeroGroundFlughafen München GmbH, Munich. Moreover, as of2011, MediCare Flughafen München MedizinischesZentrum GmbH, Oberding, is no longer a subsidiarybut is included in the Group’s consolidated financialstatements as an associated company. This changedoes not have a material effect on the consolidatedfinancial statements.Activities <strong>and</strong> organizational structureFlughafen München GmbH runs Munich Airport,which began operating at its current location in Er -dinger Moos in 1992. To service air traffic, MunichAirport has two modern, highly efficient terminals<strong>and</strong> two runways, both 4,000 meters long <strong>and</strong> capableof operating independently. Besides its aviation<strong>and</strong> ground h<strong>and</strong>ling activities, Flughafen MünchenGmbH also engages in a range of non-aviation businessactivities, primarily real estate management <strong>and</strong>de velopment <strong>and</strong> retail operations, the latter includinghospitality <strong>and</strong> parking services.Flughafen München GmbH is organized functionallyin central, business <strong>and</strong> support divisions. The busi -ness divisions operate <strong>and</strong> generate revenues independentlywithin their respective markets, whereasthe support divisions primarily operate internally<strong>and</strong> provide the business divisions with professionalexpertise <strong>and</strong> specialized services. The central divisionsare responsible for the overall management ofthe airport.A l<strong>and</strong>mark change in FMG Group policy came in2011 with the successful restructuring of our formerGround H<strong>and</strong>ling division. The high losses recordedin the ground services segment since the market wasthrown open to competing, private ramp-h<strong>and</strong>lingoperators have been a major burden on the Groupin recent years. By carving out our ground h<strong>and</strong>lingbusiness into a wholly owned subsidiary with a com -petitive pay-scale structure, we created the right conditionsfor a successful turnaround in this segment.Strategy <strong>and</strong> sustainabilityMunich Airport ranks as one of Europe’s foremostaviation hubs. The FMG Group’s success as an enterpriseis the result of its ability to operate efficiently,to maintain business momentum <strong>and</strong> to focus firmlyon profitable growth.Munich Airport is committed to pursuing a sustainablebusiness strategy that strikes a successful balancebetween key economic, environmental <strong>and</strong> socialobjectives. Group corporate policy sets out to maintain<strong>and</strong> strengthen the foundations of the Group’sbusiness in the longer term in such a way that, goingforward, it can continue to operate successfully <strong>and</strong>safeguard both public mobility <strong>and</strong> Bavaria’s locationalappeal.At FMG, we firmly believe that sustainable businesspractices help safeguard steadier <strong>and</strong> more consistentgrowth <strong>and</strong> make an organization more competitivein the longer term. We are therefore committed tosustainability, as reflected by our mission statement:“By 2015 we will be one of the most attractive, ef -ficient <strong>and</strong> sustainable hub airports in the world.”113
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityFor FMG, sustainability is nothing new. Helping ourem ployees <strong>and</strong> leaders to grow <strong>and</strong> be their best,<strong>and</strong> engaging with our neighboring communities <strong>and</strong>sur rounding region have always been of immenseimpor tance to us. We have also sought actively topro tect the environment for many years now, as ex -emplified by our decision in 2008 to aim for carbonneutralgrowth.Our subsidiaries share the same commitment.Allresto, for instance, sources around 90 percent ofits produce with suppliers in Bavaria. Accredited underthe Eco-Management <strong>and</strong> Audit Scheme, the com -pany goes to considerable lengths to preserve re -sour ces when processing foods <strong>and</strong> to ensure thatits practices in areas like logistics <strong>and</strong> cleaning aresustainable. Allresto is certified organic, too, whichmeans that it is authorized under EU regulations toproduce organic foods, which it serves at the BistroOrganic restaurant in Terminal 2. The company’s stat -ed aim is to be the most attractive, efficient <strong>and</strong> sustainablehospitality operator in the transport sector inEurope.Economic <strong>and</strong> industry environmentGlobal economic growth faltered slightly in 2011, slip -ping to 3.8 percent, from 5.2 percent in 2010. Negativefactors included a significant rise in raw materialprices in the first six months <strong>and</strong> the severe earthquakein Japan in March 2011. As the effects of theseshorter-term negatives eased, the global economybriefly looked more robust moving into the thirdquarter, before renewed problems in the Eurozoneagain curbed growth, <strong>and</strong> even emerging economiesbegan to slow.The U.S. economy, the world’s largest, recoveredsomewhat as the year progressed, <strong>and</strong> by the fourthquarter annual GDP growth had hit 2.8 percentaccording to the Department of Commerce – thehighest it had been since early 2010. In the end,though, this was only enough for a 1.7 percent in -crease overall in 2011.Emerging economies, too, cooled markedly over thecourse of 2011, as exports slowed. At the same time,sev eral countries tightened economic policy in an effortto counteract inflationary pressures. This is whya number of central banks raised interest rates <strong>and</strong>minimum reserves <strong>and</strong>, in some cases, resortedto unconventional approaches to slow the influx ofcapital. Against this backdrop, China’s economy lostpace, growing 9.2 percent over the year as a whole,compared to 10.3 percent a year earlier.Growth in the Eurozone in 2011 was affected significantlyby the mounting sovereign debt crisis. After asolid enough start to the year, the economy cooledoff noticeably. Besides the debt crisis, increasinglyrestrictive fiscal policy stalled domestic economicactivity. Without Germany, economic growth in theEurozone would have come to a complete st<strong>and</strong>stillby the third quarter of 2011; over the year as a whole,though, it did manage to reach 1.6 percent.Exceptional gains at Munich AirportGermany’s economy may not have succeeded inbucking the wider global trend entirely, but thecountry’s domestic product nonetheless exp<strong>and</strong>edsharply once again, driven by strong domestic dem<strong>and</strong>as well as exports.During 2011, airports in Germany logged almost200 million passenger movements – some 5 percentmore than a year earlier.114
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportAfter 2009 <strong>and</strong> 2010, two crisis years during whichthe aviation industry weathered transient collapsestriggered not just by the global credit crunch but alsoby events like the volcanic ash cloud, 2011 saw theindustry return to solid growth. However, as a glanceat the figures for a number of airports reveals, trafficgains varied by huge margins from one to the next.Although passenger numbers at two-thirds of Ger -many’s airports were either flat or in decline <strong>and</strong> air -craft movements at several were also lower, Munichcan look back on a strong year with swift trafficgrowth, during which the passenger volume rose8.8 percent – the highest gain at any airport in Germany– to reach roughly 38 million.In the cargo sector, too, growth was robust, with thetotal freight <strong>and</strong> mail volume h<strong>and</strong>led increasing by5.9 percent to hit a new all-time high of more than303,655 metric tons.The number of takeoff <strong>and</strong> l<strong>and</strong>ing operations wasup by around 20,000 or 5.1 percent on the prior year,almost reaching 410,000 <strong>and</strong> just 5.0 percent underthe record highs we posted in 2007 <strong>and</strong> 2008.In contrast to so many other airports – <strong>and</strong> in spite ofthe wider adverse conditions within the aviation in -dustry – Munich can report such strong results thanksto the growth fueled by its exp<strong>and</strong>ing role as a keyhub airport. This is reflected in a steady rise since themid-1990s in the number of transfer passengers as aproportion of our overall passenger volume. In 2010,transfers accounted for around 37.0 percent of allpassengers at Munich Airport, but by the end of 2011this figure had increased to 40.0 percent.A glance at the rankings of the ten busiest passengerairports in Europe reveals that Munich continuesto compete successfully against other major aviationhubs. Thanks to our exceptional growth, we nowrank sixth for the first time among Europe’s top tenairports, based on the key metric of passenger num -bers; ranked on aircraft movements, Munich has al -ready been number six for several years now.Business trends <strong>and</strong> earningsFor the FMG Group, 2011 was its most successfulbusiness year ever. After the global financial <strong>and</strong>economic crisis of recent years, Munich Airport sawa return to robust traffic growth much sooner thananticipated. Our passenger volume grew significantlyfaster than the average rate recorded at other airportsin Germany <strong>and</strong> elsewhere in Europe in 2011,rising 8.8 percent year on year to roughly 38 million.The sharp increase in passenger movements is, how -ever, due in part to the low baseline set by the prioryear, with the first two quarters of 2010 beset bysuch factors as an extreme winter, the volcanic ashcloud, <strong>and</strong> a strike by airline pilots, which togethercurbed passenger traffic significantly. However, inspite of these events, two successive quarters ofswift gains in the latter half of 2010 saw passengernumbers eventually break through our previous alltimehigh. This makes our Q4 passenger growth in2011 – 5.0 percent on the busy last quarter in 2010 –all the more remarkable.With a gain of more than 11.0 percent, continentaltraffic, more than any other segment, pushed ourpassenger numbers higher in 2011. Hub traffic todestinations in Europe, in particular, increased,prompting carriers to operate aircraft with higherseat capacities.115
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityOn the negative side, the events of the Arab Springimpacted substantially on traffic to <strong>and</strong> from thecountries affected, but not on overall traffic growth atMunich Airport. Flights to <strong>and</strong> from Egypt saw pas -senger numbers drop by one-fifth due to the country’spolitical upheavals, <strong>and</strong> traffic to <strong>and</strong> from Tunisia wasdown a quarter. However, these drops were morethan offset by gains on routes to alternative traveldestinations, with services to Turkey alone logging212,000 additional passengers – almost twice thenumber by which passengers on flights to <strong>and</strong> fromEgypt <strong>and</strong> Tunisia declined.On intercontinental routes, the passenger volumegrew by almost 7 percent. Routes to <strong>and</strong> from Africawere the only ones on which passenger numberswere down on the prior year, <strong>and</strong> this was due tofewer services being offered to two holiday destinations,Mauritius <strong>and</strong> the Cape Verde Isl<strong>and</strong>s. By con -trast, passenger numbers on routes to <strong>and</strong> from Asiaincreased sharply.On transatlantic routes, passenger trends differed,with marked gains on services to Canada <strong>and</strong> Brazilbut declines on flights to tourist destinations inMexico, Cuba <strong>and</strong> the Dominican Republic.A key reason for our rising numbers of passenger<strong>and</strong> aircraft movements are changes in fleet policyby air lines serving Munich, most notably DeutscheLuft hansa. Because Munich Airport has been a solidgrowth market in recent years, Lufthansa has boostedcapacity significantly here, mainly by operating jetswith higher seat capacities rather than by steppingup frequencies on its routes.Our earnings in 2011 reflect the traffic boom at MunichAirport during the course of the year.SalesGroup sales in fiscal 2011 totaled €1.150 billion (2010:€1.081 billion), rising 6.4 percent overall in the aviation<strong>and</strong> non-aviation sectors thanks to the growth in traf -fic <strong>and</strong> passenger numbers. The changes in Groupsales <strong>and</strong> earnings are reviewed below, in the sectiontitled “Group business activities.”ExpensesCosts of raw materials <strong>and</strong> supplies in fiscal 2011grew less rapidly, by 1.8 percent, or €5.292 million,to €294.813 million.Year on year, the rise in personnel expenses wasmarginal, just 0.4 percent or €1.113 million, to€308.124 million. This was the result of natural wastage<strong>and</strong> structural changes in the ground h<strong>and</strong>lingsector.Significant other operating expense <strong>and</strong> interest accountedfor €292.620 million (2010: €350.544 million)or 27.9 percent (2010: 31.8 percent) of the Group’stotal pre-tax costs. This represents a 3.9 percentdecrease on the prior year <strong>and</strong> is due both to anincrease in other operating expense in 2010, from€98.228 million to €182.077 million, <strong>and</strong> to a dropin 2011 in the interest paid to shareholders, to€15.948 million from €151.982 million a year earlier.During 2010, all contractually owed interest fromprior years was paid to shareholders.Depreciation, amortization <strong>and</strong> impairmentsacross the Group totaled €154.398 million (2010:€155.584 million).116
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportThe FMG Group generated a net profit of€186.543 million in fiscal 2011 (2010: €19.765 million).The year-on-year increase in profit is mainly theresult of lower interest expense compared to 2010.Group business activitiesThe FMG Group consists of separate profit centersthat are assigned organizationally either to businessdivisions – Aviation (including h<strong>and</strong>ling services),Consumer Activities, <strong>and</strong> Corporate Real EstateManagement <strong>and</strong> Development – or to central orsupport divisions.AviationOur Aviation division is responsible for the safe <strong>and</strong>orderly h<strong>and</strong>ling of air traffic within the bounds of theairport. As of January 1, 2011, Flughafen MünchenGmbH provides airside h<strong>and</strong>ling services through asubsidiary, AeroGround Flughafen München GmbH,Munich. AeroGround Flughafen München GmbH’sorganizational structure is aligned specifically to theneeds of customer airlines using Terminals 1 <strong>and</strong> 2.The Aviation division contributed 52.3 percent ofGroup sales. Thanks to the growth in air traffic, thedivision’s earnings grew 6.0 percent, or €34.023 million,year on year, to €601.399 million.Non-aviation: Consumer Activities <strong>and</strong>Corporate Real Estate Management <strong>and</strong>DevelopmentOur Consumer Activities division’s roles include devel -oping, marketing <strong>and</strong> managing the airport’s retail <strong>and</strong>hospitality offerings, <strong>and</strong> selling advertising space atMunich Airport. It is also responsible for our Parking<strong>and</strong> Services business, which comprises on-siteparking <strong>and</strong> a range of innovative parking-relatedservices.One of the mainstays of our non-aviation business iseurotrade Flughafen München H<strong>and</strong>elsgesellschaftmbH, Munich. This is a subsidiary which markets aselect range of premium national <strong>and</strong> internationalgoods, tailored carefully to the requirements of itsairport customer base. Its focus is on respondingquickly <strong>and</strong> flexibly to continuously changing customerneeds <strong>and</strong> expectations.Allresto Flughafen München Hotel und GaststättenGmbH, Munich, runs the public restaurants <strong>and</strong> otherhospitality operations in the public areas <strong>and</strong> secureareas of the airport; it is also responsible for the em -ployee restaurants on campus <strong>and</strong> for the airporthotel managed by the Kempinski Group.Our Corporate Real Estate Management <strong>and</strong> Devel -op ment division develops, markets <strong>and</strong> managescompany-owned buildings <strong>and</strong> other facilities in linewith market needs. Besides the airport’s own infra -structure, the real estate under management includesbuildings outside the airport itself, plots of l<strong>and</strong> ac -quired to permit future expansion, <strong>and</strong> compensatorymitigation sites created to restore the ecologicalbalance.Like our aviation business, our non-aviation businessperformed well, with sales growing 6.9 percent, or€35.524 million year on year, to €549.242 million, toprovide 47.7 percent of Group earnings.The higher sales volumes in the aviation <strong>and</strong> nonaviationsectors are both due to our rapid passengergrowth in 2011.117
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityAsset <strong>and</strong> capital structureDecember 31, 2011 December 31, 2010€ thous<strong>and</strong> % € thous<strong>and</strong> %AssetsIntangible assets 11,930 0.3 3,628 0.1Tangible assets 3,557,281 90.9 3,566,587 91.6Financial assets 3,600 0.1 4,365 0.1Fixed assets 3,572,811 91.3 3,574,580 91.8Inventories 50,956 1.3 57,765 1.5Receivables 84,050 2.1 79,551 2.0Liquid assets 200,129 5.1 178,455 4.6Current assets 335,135 8.5 315,771 8.1Prepaid assets <strong>and</strong> deferred charges 7,227 0.2 3,847 0.1Total assets 3,915,173 100.0 3,894,198 100.0CapitalCapital stock 984,969 25.1 865,817 22.3Shareholder loans 491,913 12.6 491,913 12.6Long-term debt 2,069,709 52.9 2,091,598 53.7Short-term debt 368,582 9.4 444,870 11.4Total assets 3,915,173 100.0 3,894,198 100.0Total assets at December 31 were €20.975 millionhigher than a year earlier, at €3.915 billion. Thisincrease is largely the result of higher liquid assets.Group fixed assets were lower by €1.769 million onthe prior year. Additions totaling €151.625 millionfrom investment activities <strong>and</strong> additions from reclassificationsof current assets in the form of l<strong>and</strong> <strong>and</strong>buildings are set against depreciation, amortization<strong>and</strong> impairments of €154.398 million.Additions to tangible assets mainly concern l<strong>and</strong>,buildings <strong>and</strong> construction in progress, with additionsof l<strong>and</strong> made primarily in connection with the projectto build the airport’s third runway. These additionstotaled €6.461 million at Flughafen München GmbH.The additions of buildings mainly consist of accesscreated for the structural part of a new boardingbridge for the A380 (€1.366 million), the constructionof the new VIP lounge in Terminal 1 (€3.141 million)<strong>and</strong> investment by Flughafen München GmbH in theexpansion of parking garage P20 (€6.900 million).As in 2010, additions to construction in progress –€93.750 million in total – largely consisted of plan -ning <strong>and</strong> project work in connection with the airport’sthird runway (€18.991 million at Flughafen MünchenGmbH) <strong>and</strong> planning costs relating to the satellite<strong>and</strong> expansion of the baggage transportation system(€52.710 million at Terminal 2 BetriebsgesellschaftmbH & Co oHG, Oberding). Other high-value addi tionsat Flughafen München GmbH include €5.133 millionfor incomplete buildings <strong>and</strong> €5.498 million for incompletetechnical installations <strong>and</strong> machinery.118
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportInvestments in plant <strong>and</strong> office equipment totaled€11.120 million. These essentially comprise purchasesof vehicles, systems <strong>and</strong> plant <strong>and</strong> officeequipment at Flughafen München GmbH totaling€4.127 million.The drop of €765 thous<strong>and</strong> in financial assets is al -most entirely the result of changes involving asso ci -ated companies in the group of consolidated companies.Current assets increased by a total of €19.364 millionin 2011, but year-on-year changes varied from assetclass to asset class: Trade receivables <strong>and</strong> otherassets grew €4.499 million, <strong>and</strong> liquid assets rose by€21.647 million; inventories, by contrast, were lower,partly as a result of the reclassification of assets.The €119.152 million change in equity is due mainlyto the Group’s consolidated net income (€197.119 mil -lion), payouts from minority interests (€25.767 million)<strong>and</strong> the repayment of contributions to third-partyshareholders (€50.805 million).Provisions were down €7.153 million at €218.800 millionin 2011. The provision for the restructuring of ourground h<strong>and</strong>ling operations formed in 2010 wasrevalued <strong>and</strong> totaled €10.400 million at the balancesheet date. Tax provisions, too, were lower, down€9.615 million, at €15.995 million. However, oncezoning approval was granted for the airport’s thirdrunway in the summer of 2011, assets also had to betransferred into the regional fund.The FMG Group’s total liabilities (excluding shareholderloans) dropped by €104.280 million in 2011,to €2.131 billion. The liability to shareholders in 2010from interest on shareholder loans of €151.982 millionwas reduced by €136.034 million, to €15.948 million.Liabilities to banks dropped by €20.990 million;this occurred mainly in the context of loans withterms of more than one year. The increase in otherliabilities is essentially due to liabilities reported inconnection with the repayment of contributions tothird-party shareholders.In addition, trade payables were higher in 2011, up€14.787 million.Financial situationCash flow from operations secured sufficient financialresources to ensure the Group’s liquidity throughoutfiscal 2011. Including interest paid to shareholders,cash flow from operations totaled €208.068 million(2010: €305.466 million) <strong>and</strong> was sufficient to coverinvestments in 2011 of €136.919 million (2010:€84.248 million). Bank loans increased slightly inaddition.The Group’s companies are all part of a cash poolformed for financing purposes. Capital spending infiscal 2011 was funded entirely through operatingcash flow.Group-wide procurement optimizationIn 2011, FMG launched a new project to optimizeprocurement, group-wide. The project consisted ofan analysis phase, to assess the current situation,<strong>and</strong> an implementation phase in which individualprocurement processes were optimized.119
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityThe project not only resulted in numerous swiftlyimplemented savings in procurement projects acrossthe Group, it also led to a crucial realignment in pro -curement strategy. This has seen changes in the rolesassigned to buyers, consistent mapping of goodscategories to procurement teams, <strong>and</strong> the integrationof subsidiaries’ purchasing processes into a centralGroup procurement system.These changes, which also affected our procurementunit’s organizational structure, combined with theworkload involved in h<strong>and</strong>ling two major projects atthe airport (the new satellite building <strong>and</strong> the thirdrunway) <strong>and</strong> natural employee turnover, meant thatwe had to hire 17 new people in 2011. FMG’s procure -ment unit will be busy implementing the plannedchanges into 2012.EmployeesOne important event from our employees’ perspectivewas the formation of a new subsidiary for groundh<strong>and</strong>ling services, AeroGround Flughafen MünchenGmbH, on January 1, 2011.The situation in the ground h<strong>and</strong>ling sector in 2011was dominated by the high traffic volume, whichplaced exceptional dem<strong>and</strong>s on our ground h<strong>and</strong>lingcrews, particularly during the summer months. Theburden was all the more acute because a shortageof readily available labor in the local market madehiring the people we needed a problem.Our People First project, launched for our groundh<strong>and</strong>ling personnel in 2010, was widened <strong>and</strong> trans -formed into a company health management program.This project, along with the company integrationmanagement system we introduced in 2011,exemplifies the considerable emphasis we as anorganization place on the whole issue of employeehealth.We also progressed our careers <strong>and</strong> families project(known in the FMG Group as “befamily!”), which wasintroduced to better reconcile employees’ family in -terests with employer needs <strong>and</strong> expectations. Theproject involves a raft of specific measures. Oneprom inent example is our decision to build a children’sdaycare center at the airport.In 2011, FMG kept up its acknowledged high level ofsupport for young people, demonstrating once againits commitment to good corporate citizenship in theairport’s surrounding region.Customer satisfactionMunich Airport typically wins a number of awardseach year that underscore its special qualities.Readers of the magazine Traveller’s World pickedBavaria’s gateway as the sixth-best airport in a worldwidecomparison in 2011. We successfully retainedour position as the best in Europe, <strong>and</strong> in the globalrankings we were only bettered by Singapore, Seoul,Hong Kong, Dubai <strong>and</strong> Bangkok. Munich was theonly commercial airport in Germany to make it intothe Traveller’s World top ten.The independent London-based research organizationSkytrax also conducts annual polls across theaviation industry to rank airlines <strong>and</strong> airports on theirperformance. Worldwide, more than 11 million pas -sengers from over 100 countries took part in thesurvey for the 2011 World Airport Awards.Survey respondents rated more than 240 internationalairports <strong>and</strong> an even greater number of airlinecompanies. The airports were scored according tosome 40 categories, including h<strong>and</strong>ling operations<strong>and</strong> service quality, airport shopping <strong>and</strong> entertainment,<strong>and</strong> ease of transit.120
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportIn the global rankings, Munich was fourth, the sameslot as a year earlier, behind Hong Kong, Singapore<strong>and</strong> Seoul.For the sixth time in seven years, Munich Airport wasalso chosen as the best airport in Europe in the Skytraxawards.Corporate governance <strong>and</strong> complianceThe term compliance describes the efforts undertakenby companies to ensure that their operating units<strong>and</strong> employees abide by laws, regulations, national<strong>and</strong> international norms <strong>and</strong> st<strong>and</strong>ards, <strong>and</strong> in-housepolicy, rules <strong>and</strong> guidelines.Effective January 1, 2011, FMG set up a dedicatedCompliance department. The new department is anexecutive support office attached to FMG’s centralLegal Affairs <strong>and</strong> Compliance division, but reports tothe executive <strong>and</strong> supervisory boards directly. Thedepartment is responsible for implementing, extending<strong>and</strong> optimizing the FMG Group’s new compliancemanagement system. Our aim is to have the systemcertified to the IDW PS 980 st<strong>and</strong>ard during 2012.Management <strong>and</strong> oversight bodiesAs a limited liability company domiciled in Munich,Flughafen München GmbH is governed in accordancewith the requirements of Germany’s Limited LiabilityCompanies Act, relevant commercial law <strong>and</strong> corporatelaw statutes, <strong>and</strong> a number of co-determination<strong>and</strong> collective bargaining statutes. Besides an execu -tive board, the company has a supervisory board,installed as an independent body to oversee theexecutive board.Under the articles of Flughafen München GmbH, thesupervisory board’s role is to monitor executivemanagement. The supervisory board consists ofeight members representing the company’s shareholders,plus a further eight representing the com -pany’s employees. Flughafen München GmbH’sshareholders are represented on the supervisoryboard in proportion to their percentage ownership ofthe company. On the employee side, the board hasmembers representing company employees (fiveseats), labor unions (two seats), <strong>and</strong> managementlevelemployees (one seat). The supervisory board’skey powers include the authority to appoint <strong>and</strong> dis -miss members of the company’s executive managementteam.Under the provisions of the company’s articles, certainsteps <strong>and</strong> transactions undertaken by executivemanagement that exceed set maximum monetaryvalues may only be conducted with the expressapproval of the supervisory board. In the event thatsupervisory board members are divided on a decision<strong>and</strong> the numbers in favor <strong>and</strong> against are equal,the vote of the chair (representing the shareholders)counts double.The shareholders’ representatives on the supervisoryboard are appointed by the relevant federal <strong>and</strong> stateministries <strong>and</strong> administrative districts.Flughafen München GmbH’s executive board consistsof the President <strong>and</strong> Chief Executive Officer (whois also Personnel Industrial Relations Director <strong>and</strong>spokesperson for the executive board), <strong>and</strong> the VicePresident <strong>and</strong> Chief Financial Officer (who is alsoChief Infrastructure Officer). Details of the company’ssystem of executive pay <strong>and</strong> the remunerationreceived by individual members of the executive<strong>and</strong> supervisory boards are provided in the annex tothe consolidated financial statements, here in thisreport.) www.munich-airport.com/compliance121
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityTransparency guidelinesThe FMG Group has a number of organizational h<strong>and</strong> -books that set out requirements governing processesin Group companies (excluding special purposeentities). There are numerous compliance guidelineson public procurement law, procurement <strong>and</strong> contractingprocesses, <strong>and</strong> information security. Theseensure that processes <strong>and</strong> procedures are transparent<strong>and</strong> traceable, both internally <strong>and</strong> externally. Incontracting <strong>and</strong> tendering procedures, FlughafenMünchen GmbH requires bidders to submit a dec -laration of commitment, stating that they will undertakeeverything necessary to preclude corruption.Compliance failures are liable to sanctions, such asexclusion from the contracting process.Analysis of procurement processesTo improve security in procurement, assessments areconducted on a quarterly cycle to identify possiblecases of noncompliance with Group procurementrules <strong>and</strong> practices. The st<strong>and</strong>ard procurement pro -cesses in different parts of the organization are analyzedto determine whether competition criteria arebeing met in individual instances.Checks are performed to ascertain whether a unitawarding a contract has obtained three competingbids as required under in-house rules or, if it has not,whether it can present adequate justification.In addition, invoices for which there is no matchingorder in the SAP enterprise software systemare scrutinized. The purpose is to reduce so-calledmaverick buying (procurement outside our st<strong>and</strong>ardprocurement routes) as this can result in savings.AnticorruptionIn 2010 we published our updated FMG Code of Con -duct. This describes fundamental corporate principlesfor ensuring legally compliant <strong>and</strong> ethical behavioramong our employees <strong>and</strong> managers. Available onthe intranet, the Code includes rules prohibiting theacceptance of gifts, entertainment or favors <strong>and</strong> thegranting of favors to third parties, as well as ruleson sideline work <strong>and</strong> regulations on contract awardprocedures. It also references other guidelines bywhich employees must abide. The Code’s purposeis to ensure that proper procedures are followed inconnection with procurement <strong>and</strong> the award <strong>and</strong>h<strong>and</strong>ling of contracts.We regularly provide training <strong>and</strong> publish informationto make sure that employees <strong>and</strong> managersare familiar with the guidelines <strong>and</strong> any updates oramendments to them. We also require companymanagers <strong>and</strong> employees to confirm by signaturethat they acknowledge the FMG Code of Conduct<strong>and</strong> that they undertake to support <strong>and</strong> abide by it.In the event that a unit or individual is confrontedwith an issue or situation that is unclear, they canseek advice from the Compliance department.Through to the end of 2010, our head of internalauditing also served as the Group’s anticorruptionofficer. On January 1, 2011, this role passed to thehead of our newly formed Compliance department.During 2011, as part of ongoing efforts to refine ourcompliance management system, we began cata -loging specific compliance risks. This process encompassesall units at Flughafen München GmbH<strong>and</strong> all FMG Group subsidiaries.Our anticorruption officer has reported that therewere no alleged cases of corruption at FlughafenMünchen or its subsidiaries in 2011. One case ofsuspect pricing was investigated where it appearedthat price-setting had not been on a competitive basis,but the suspicion proved unfounded.Electronic whistle-blower systemOn July 1, 2011, we rolled out an electronic whistleblowersystem. Known as the Business KeeperMonitoring System (BKMS ® System), it enablesGroup employees, business partners <strong>and</strong> customers122
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportto report behavior potentially damaging to our organ -ization. Whistle-blowers can submit reports anonymously,<strong>and</strong> the system is designed to protect theiranonymity. <strong>Report</strong>s received are assessed, <strong>and</strong>further action is taken as necessary.Data protectionFlughafen München GmbH’s data protection officeris also assigned organizationally to the Compliancedepartment but conducts his job independently.During 2012, the company aims to introduce a unifiedgroup-wide data protection concept that setsst<strong>and</strong>ards for ensuring <strong>and</strong> enforcing individuals’data privacy rights.Initial training courses delivered to new employees<strong>and</strong> vocational trainees, along with periodic onwardtraining for employees in data privacy law, havehelped raise awareness of statutory data protectionrequirements. In addition, we will be rolling out anew web-based training program in 2012 to extendour offering of training in this area.Specialist individual advice is also available in instanceswhere people are unsure how to comply properlywith data protection regulations.Opportunities <strong>and</strong> risksFlughafen München GmbH has a comprehensive riskmanagement system in place that serves to identify,assess <strong>and</strong> track risks.Basic risk policyWhen exploring business opportunities, FlughafenMünchen GmbH takes steps to assess the attendantrisks. There must be an appropriate relationship betweenopportunities <strong>and</strong> risks.Following are fundamental principles we apply, basedon our objectives:- Our risk strategy aligns with our corporate strategy;the two must be consistent with one another.- Our risk management system is integral to ourbusiness processes.- Risk is mainly managed by those responsible forbusiness processes.- Our risk management process is intended to ensurethat key risks are identified, assessed <strong>and</strong> tracked.- Decision-makers are notified transparently aboutrisks that are identified.- We make active use of the means at our disposalto avoid or mitigate risks <strong>and</strong> take swift counteractionwhere necessary.Risk management systemFlughafen München GmbH’s system of risk managementcovers the full extent of the company’soperational <strong>and</strong> strategic business processes <strong>and</strong> isdesigned to identify, gauge <strong>and</strong> mitigate all potentialrisks facing the company <strong>and</strong> its subsidiaries (excludingspecial purpose entities). Risks that we identifyare assessed based on their likelihood of occurrence<strong>and</strong> on a quantification of the scale of their impactin the event that they become reality. The primarygoal of our risk management is to take a controlledapproach to risk <strong>and</strong> to define appropriate preventivemeasures.Our risk management also covers all aspects ofsustainability – environmental, economic <strong>and</strong> social –on which a monetary value can be placed.All risk information is reviewed internally in a quarterlyreport which is issued to executive management<strong>and</strong> division heads. This enables executivesto respond quickly <strong>and</strong> effectively to shifting risk123
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityscenarios <strong>and</strong> to mount a swift response to new <strong>and</strong>emerging threats. Supervisory board members alsoreceive copies of the latest risk reports.To ensure thorough observance of laws <strong>and</strong> directivesas well as the company’s own internal rules <strong>and</strong>guidelines, Flughafen München GmbH’s executivemanagement took steps to firmly embed complianceprinciples into business processes <strong>and</strong> the Group’sgeneral corporate <strong>and</strong> management culture during thepast year. These steps included the introduction of anoverarching compliance framework on January 1, 2011.To minimize possible financial damage, the FMGGroup has insurance for appropriate amounts coveringkey areas of potential loss <strong>and</strong> liability. Throughoutfiscal 2011, the Group was fully able to meet itsneed for financial resources, thanks to stable internalfunding <strong>and</strong> guaranteed lines of credit. Munich Airportis not currently experiencing any kind of liquiditysqueeze in money markets.The main focuses of our risk reporting in 2011 wereas follows: the legal proceedings initiated by theL<strong>and</strong>shut prosecutor’s office, the L<strong>and</strong>shut revenueservice investigators, <strong>and</strong> Munich’s central customsoffice in connection with events at the FlughafenMünchen GmbH subsidiary CAP Flughafen MünchenSicherheits-GmbH; risks associated with a possiblefurther opening up of the ground h<strong>and</strong>ling servicesmarket; <strong>and</strong> a European Commission review concerningthe construction of Terminal 2. All of the aboverepresent risks that will continue beyond 2011.Other risks addressed included possible industrial actionin connection with collective bargaining on paydeals for air traffic control operators <strong>and</strong> airport fireservice personnel. These risks receded during thecourse of the year when the pay negotiations endedin a successful settlement.In the latter half of the year, uncertainty surroundingthe future of the economy <strong>and</strong> the possible implicationsfor Flughafen München GmbH became a focusof our risk reporting.External risks assessed as having a low likelihood ofoccurrence but a potentially severe economic impactincluded acts of terror, natural disasters, <strong>and</strong> the lossor impairment of the airport’s ability to function as anaviation hub.Financial risks, including risks issuing from variousfinancial instruments (derivatives, <strong>and</strong> the managementof receivables, liabilities <strong>and</strong> financial assets)are reviewed at regular intervals <strong>and</strong> assessed withregard to current price changes <strong>and</strong> to default <strong>and</strong>liquidity risks. Derivative financial instruments arenow only employed as an interest rate <strong>and</strong> currencyrisk hedge, <strong>and</strong> require the express approval ofexecutive management.We identified no risks to our continuity as anenterprise in 2011.Fiscal risksFlughafen München GmbH <strong>and</strong> the FMG Group facecredit, interest rate <strong>and</strong> foreign exchange risks inconnection with reported <strong>and</strong> future items <strong>and</strong> trans -actions. To address interest rate <strong>and</strong> foreign exchangerisks, Flughafen München GmbH hedges underlyingtransactions on a large scale with derivative financialinstruments. The treasury is responsible for managingmarket risks efficiently. As a rule, only those risksare managed that can affect cash flow. Interestderivatives are only employed to optimize lendingterms <strong>and</strong> to limit exposure to adverse movementsin interest rates. No transactions are conducted forcommercial or speculative reasons.Our exposure to interest risk is mainly through financialliabilities with variable interest rates. Interestrate hedging positions can result in negative marketvalues when market interest rates are lower.In instances where planned foreign currency incomecannot be matched with foreign currency expense,foreign exchange risks arise; these are hedged withforeign currency forward contracts.124
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportCredit risk is tied mainly to short-term financial investments.This risk is generally controlled by makingfinancial investments with banking organizations inthe European Union that offer deposit protection.Risks affecting Flughafen München GmbH’s assets,finances <strong>and</strong> earnings may arise in connection withthe current situation in global financial markets <strong>and</strong>its potential impact on the economy as a whole, ongeneral liquidity, <strong>and</strong> on future bank lending.Potential bad debt risk is addressed through strict <strong>and</strong>effective debt management. This includes checkingcustomers’ credit ratings thoroughly, continuouslytracking unpaid invoices, <strong>and</strong> taking a strict approachto payment reminders <strong>and</strong> collections.The FMG Group’s overall risk situationNo risks posing a threat to continuity have beenidentified.Opportunities <strong>and</strong> growth projectsWith the economy expected to stabilize <strong>and</strong> dem<strong>and</strong>for air transport likely to increase, Flughafen MünchenGmbH’s executive management considers the inter -mediate <strong>and</strong> long-term prospects for continuedgrowth in hub traffic to be promising. To be able tocapitalize on the opportunities for growth, MunichAirport urgently needs a third runway. In 2011, thezoning process for the runway ended in a grant ofapproval, allowing the expansion work vital for theairport’s future to go ahead.A municipal referendum is to be held in the statecapital, Munich, on June 17, 2012, on the constructionof the airport’s third runway. The purpose of thereferendum is to determine whether the city of Munich,as a shareholder of Flughafen München GmbH,should approve the planned construction project.In addition, 20 cases brought against the zoningapproval are currently being heard by the BavarianAdministrative court. Flughafen München GmbH haschosen not to immediately exercise the right grantedby the zoning approval <strong>and</strong> begin construction, but toawait the court’s rulings.Irrespective of the forecasts <strong>and</strong> the traffic scenariosprojected for the decades ahead, the airport alreadyneeds a third runway today. Our present capacitywith our two-runway system, which allows us toschedule 90 takeoffs <strong>and</strong> l<strong>and</strong>ings <strong>and</strong> hour, is byno means sufficient to cover airlines’ current needs.Munich Airport is already operating at the limits of itscapacity, <strong>and</strong> carriers would readily use as many as110 slots an hour at peak times – in other words, foreight to ten hours a day – if they were available.Besides additional runway capacity, Munich Airportalso needs more contact st<strong>and</strong>s at terminals <strong>and</strong>more passenger-h<strong>and</strong>ling resources if it is to accommodateits growing hub traffic.To address these needs, we are collaborating withLufthansa to build a satellite on the east apron as anextension to Terminal 2. The satellite will be connectedto the terminal via an underground automatedpeople mover system. The project has been grantedzoning approval, <strong>and</strong> the foundation stone ceremonyset for April 23, 2012. The satellite, which will have52 gates <strong>and</strong> 27 contact st<strong>and</strong>s with direct buildingaccess, is due to open in 2015 <strong>and</strong> will create thecapacity to h<strong>and</strong>le a further 11 million passengers ayear.As with the construction of Terminal 2 previously, thecosts of the new building <strong>and</strong> its technical installations– around €650 million in total – will be shared60:40 by FMG <strong>and</strong> Lufthansa.125
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityOnce built, the satellite will help to uphold <strong>and</strong> safeguardMunich Airport’s acknowledged high qualityst<strong>and</strong>ards as a transfer hub, even with the anticipatedfuture growth in traffic, <strong>and</strong> further strengthenMunich’s role as a premium international gateway.The airport is also currently erecting a new 16,000-square-meter cargo h<strong>and</strong>ling facility, which is due toopen in the summer of 2012.Planned construction <strong>and</strong> infrastructureprojectsThe grant of zoning approval for a third runway atMunich Airport means that Flughafen MünchenGmbH is now committed to providing €100 million infunding for local infrastructure projects in surroundingcommunities. Payouts are, however, contingentupon runway construction actually going ahead.Ten million euros from the fund were already allocatedto two infrastructure projects in Erding <strong>and</strong>Freising in 2008.Enhanced, more efficient l<strong>and</strong>-side transport connectionsare of major importance to Flughafen MünchenGmbH’s ability to sustain its future growth.Quality road <strong>and</strong> rail network access is both a crucialfactor to Munich Airport’s future as an internationaltransport hub <strong>and</strong> a considerable benefit to the air -port’s home region.Flughafen München GmbH is therefore pushing hardfor improvements to l<strong>and</strong>side access, particularlyby rail, not least because moving traffic off the roadnetwork <strong>and</strong> onto rail services helps to avoid harmfulemissions.An expert review conducted in November 2009 onbehalf of the Bavarian Ministry for Economic Affairs,Infrastructure, Transport <strong>and</strong> Technology into how toimprove Munich Airport’s rail access marked a majoradvance in connection with expansion plans for therail infrastructure in <strong>and</strong> around Munich.A large proportion of our passenger base alreadytravels to Munich Airport on public transport: In 2011,45 percent of passengers used local rapid transitrail <strong>and</strong> bus services. However, significantly morepassengers <strong>and</strong> airport workers would switch totraveling by rail if a through connection serving thearea to the east of Munich Airport were available <strong>and</strong>if the airport were integrated into the mainline railnetwork.Access from northeast <strong>and</strong> southeast Bavaria couldbe improved by completing the Neufahrn branch line,the Erding circular rail link <strong>and</strong> the Walpertskirchenbranch line. We expect work on the Neufahrn branchline to begin in 2013 <strong>and</strong> to finish in 2016.In the short term, the introduction of a much fasterservice between the airport <strong>and</strong> Munich’s CentralStation has the highest priority. In the longer term,the airport additionally needs to link up to the mainlineroute from Munich to Mühldorf, Freilassing <strong>and</strong>Salzburg; this will also connect the airport to the EUTrans-European Networks’ west-to-east rail arteryrunning from Paris, through Munich <strong>and</strong> Vienna, toBratislava.Munich Airport’s goal of connecting aviation withhigh-speed transport on the ground is not just ofmajor importance at the regional level, it is alsoconsistent <strong>and</strong> compatible with wider national <strong>and</strong>European transport policy objectives.126
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportq Consolidated management reportp Consolidated financial statementsp Independent auditor’s reportNotable events after the end offiscal 2011Flughafen München GmbH has agreed to furnishMAC Grundstücksgesellschaft mbH & Co. KG with a€66.500 million loan to help it secure financing. MACGrundstücksgesellschaft mbH & Co. KG was assuredthis loan in a letter dated March 5, 2012.OutlookThere will be numerous strategic growth <strong>and</strong> developmentopportunities for Munich Airport in the foreseeableterm.Growth projectionsLeading research organizations predict that Germany’seconomy will grow during 2012, but at a rateof less than 1.0 percent. Moderate growth, of lessthan 2.0 percent, is anticipated for 2013. In light ofimproving economic data, sentiment within the aviationindustry is positive on the near-term future.It remains to be seen how the European economy<strong>and</strong> the aviation industry fare, going forward. Keyissues in this context are whether the sovereigndebt crisis will spread to the real economy, <strong>and</strong>whether solutions can be reached in the currentdisagreement over the European Union’s emissionscap-<strong>and</strong>-trade scheme.We are confident that in 2012 we will be able to sus -tain the kind of rapid growth that we have accomplishedin prior years. Based on the estimates in ourcurrent business plan, we expect passenger num -bers to reach 39.5 million <strong>and</strong> our consolidated netincome to be roughly the same as in 2011.Looking ahead to the intermediate term, we expectour consolidated total income in 2013 to be at roughlythe same level as in 2011, <strong>and</strong> we anticipate plentyof opportunities for Munich Airport’s strategic growth<strong>and</strong> development emerging in the foreseeable future.Air transport dem<strong>and</strong> at Munich Airport remains onthe rise in 2012. In the early part of the year, pas -senger traffic, for example, was up between 3.0 <strong>and</strong>4.0 percent on prior-year figures. However, given ourcurrent runway system’s capacity issues, we do notexpect to see a significant increase in aircraft move -ments, because we have no more free slots at indem<strong>and</strong>times of the day when traffic is at its heaviest.The International Air Transport Association (IATA)expects passenger numbers to increase 4.0 percentover the year (2011: 6.1 percent) but cargo traffic toremain flat. The German Airports Association (ADV)predicts growth will run to around 2.6 percent nationwidein 2012. The ADV forecast is lower than in prioryears to reflect the impact of the plane ticket tax <strong>and</strong>the increasingly difficult economic circumstances.127
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityConsolidated balance sheetas at December 31, 2011Assets December 31, 2011 2010€ € € thous<strong>and</strong>A. Fixed assetsI. Intangible assets1. Franchises, intellectual property <strong>and</strong> similar rights <strong>and</strong>assets, <strong>and</strong> licenses to such rights <strong>and</strong> assets 4,625,098.52 3,6232. Goodwill 7,305,262.46 03. Advance payments 0.00 511,930,360.98 3,628II. Tangible assets1. L<strong>and</strong>, rights similar to l<strong>and</strong>, <strong>and</strong> buildings, includingbuildings on l<strong>and</strong> not owned 3,083,301,807.80 3,133 ,1552. Technical equipment <strong>and</strong> machinery 240,695,365.05 279,9203. Other equipment, plant <strong>and</strong> office equipment 40,831,170.61 43,3444. Construction in progress <strong>and</strong> advances on fixed assets 192,452,100.19 110,1683,557,280,443.65 3,566,587III. Financial assets1. Investments in associated companies 3,360,749.47 4,0382. Other loans 239,221.03 3273,599,970.50 4,3653,572,810,775.13 3,574,580B. Current assetsI. Inventories1. Substitute plots of l<strong>and</strong> 17,257,872.70 28,9272. Raw materials <strong>and</strong> supplies 8,184,861.60 5,9723. Work in progress 805,923.30 04. Goods for resale 24,707,121.93 22,86650,955,779.53 57,765II. Receivables <strong>and</strong> other assets1. Trade accounts receivable 46,335,995.88 46,7462. Receivables from affiliated companies 169,189.07 03. Receivables from associated companies 427,929.14 2584. Other assets 37,116,984.32 32,54784,050,098.41 79,551III. Cash on h<strong>and</strong> <strong>and</strong> balances with banks 200,128,566.82 178,455335,134,444.76 315,771C. Prepaid expenses 7,227,403.64 3,8473,915,172,623.53 3,894,198128
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reportLiabilities <strong>and</strong> equity December 31, 2011 2010€ € € thous<strong>and</strong>A. EquityI. Subscribed capital 306,776,000.00 306,776II. Capital reserve 102,258,376.24 102,258III. Retained earningsOther reserves 11,143,519.33 1,984IV. Consolidated net profit 186,542,963.02 19,765V. Minority interests 378,248,150.36 435,034984,969,008.95 865,817B. Shareholder loans 491,912,735.89 491,913C. Provisions1. Provisions for pensions 19,064,724.00 19,0642. Provisions for taxes 15,994,661.71 25,6103. Other provisions 183,740,385.98 181,279218,799,771.69 225,953D. Liabilities1. Liabilities to shareholders of the parent company 15,948,252.11 151,9822. Liabilities to banks 1,742,155,132.80 1,763,1453. Trade liabilities 73,626,840.53 58,8404. Liabilities to affiliated companies 656,895.36 05. Liabilities to associated companies 2,506,405.66 6,4556. Other liabilitiesof which for taxes:€5,438,430.51 (2010: €9.812 million)of which for social security:€48,903.69 (2010: €27 thous<strong>and</strong>) 296,410,248.27 255,1622,131,303,774.73 2,235,584E. Deferred income 28,617,388.46 29,664F. Deferred tax liabilities 59,569,943.81 45,2673,915,172,623.53 3,894,198129
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityConsolidated income statement for theperiod from January 1 to December 31, 20112011 2010€ € € thous<strong>and</strong>1. Net sales 1,150,641,282.91 1,081,0942. Increase in work in progress 805,923.30 03. Other own work capitalized 12,317,868.38 10,6754. Other operating income 114,136,312.95 50,9481,277,901,387.54 1,142,7175. Materials expensea) Supplies <strong>and</strong> raw materials −153,942,239.59 −148,281b) Purchased services −140,870,280.85 −141,240−294,812,520.44 −289,5216. Personnel expensea) Wages <strong>and</strong> salaries −248,266,428.11 −244,708b) Social security, pension costs <strong>and</strong> support of whichpension costs: €14,213,896.05 (2010: €16.753 million) −59,857,990.66 −62,303−308,124,418.77 −307,0117. Depreciation, amortization <strong>and</strong> write-downs on intangibleassets <strong>and</strong> property, plant <strong>and</strong> equipment −154,397,828.20 −155,5848. Other operating expense −182,077,089.87 −98,228−939,411,857.28 −850,344338,489,530.26 292,3739. Income from investments in associated companies 3,757,072.90 2,07410. Other interest <strong>and</strong> similar income 5,753,719.41 2,07911. Interest <strong>and</strong> similar expense −110,543,312.09 −252,326−101,032,519.78 −248,17312. Income from ordinary activities 237,457,010.48 44,20013. Extraordinary income 0.00 13,28514. Extraordinary expense 0.00 −5,94215. Extraordinary gain 0.00 7,34316. Income taxes of which deferred tax expense:€14,302,893.00 (2010: €8.270 million) −38,228,072.50 −37,20617. Other taxes −2,109,502.37 −2,08718. Consolidated net income 197,119,435.61 12,25019. Minority interest in consolidated net result −24,994,717.54 −15,40820. Consolidated profit carried forward 19,764,770.95 13,57721. Profit carried forward from initial consolidation ofspecial purpose entities 0.00 3,34622. Transfers from other retained earnings 0.00 6,00023. Transfers to other retained earnings −5,346,526.00 024. Consolidated net profit 186,542,963.02 19,765130
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reportConsolidated cash flow statementfor fiscal 20112011 2010€ thous<strong>and</strong> € thous<strong>and</strong>Consolidated net income 197,119 12,250Depreciation, amortization <strong>and</strong> write-downs on fixed assets 154,398 155,584Decrease in provisions −6,848 −48,530Other noncash changes/credits 4,890 −2,159Net cash from profits/losses from disposals of l<strong>and</strong> held for sale −3,505 1,017Increase (2010: decrease) in inventories, trade receivables <strong>and</strong> other assets notbooked under investment or financing activities −13,712 6,383Decrease (2010: increase) in trade payables <strong>and</strong> other liabilities not booked underinvestment or financing activities −124,274 180,921Cash flow from operating activities 208,068 305,466Proceeds from disposals of property, plant <strong>and</strong> equipment 5,159 8,590Capital expenditure on property, plant <strong>and</strong> equipment −135,527 −82,187Proceeds from disposals of intangible fixed assets 9 0Capital expenditure on intangible fixed assets −1,392 −2,061Proceeds from the sale of l<strong>and</strong> held for sale 439 678Capital expenditure on the purchase of l<strong>and</strong> for sale −1,157 −3,110Proceeds from the sale of associated companies 1,600 0Capital expenditure on the purchase of minority shares in consolidated companies −577 0Proceeds from short-term management of cash assets 0 6,500Cash flow from investment activities −131,446 −71,590Receipts from associated companies as part of group-wide cash management 0 3,671Payments to associated companies as part of group-wide cash management −2,979 0Payments to minority shareholders −32,503 −15,136Proceeds from financing loans 31,100 2,500Repayment of financing loans −50,566 −63,839Cash flow from financing activities −54,948 −72,804Change in cash <strong>and</strong> cash equivalents 21,674 161,072Cash <strong>and</strong> cash equivalents at start of period 178,455 17,383Cash <strong>and</strong> cash equivalents <strong>and</strong> end of period 200,129 178,455Interest payments −238,675 −102,744Income tax payments −32,911 −5,041131
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityStatement of changes inconsolidated equityParent companyMinorityshareholdersConsolidatedequitySubscribedcapitalCapital reserve ConsolidatedequityEquity Minoritycapitalgenerated€ thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong>At Jan. 1, 2010 306,776 102,258 21,561 430,595 11,481 442,076Other changes 0 0 3,346 3,346 408,145 411,491Consolidated net income 0 0 12,250 12,250 0 12,250Minority interest in netincome of consolidatedsubsidiaries 0 0 −15,408 −15,408 15,408 0At Dec. 31, 2010 306,776 102,258 21,749 430,783 435,034 865,817At Jan. 1, 2011 306,776 102,258 21,749 430,783 435,034 865,817Other changes 0 0 3,814 3,814 −30,976 −27,162Withdrawal of ashareholder fromMAC KG 0 0 0 0 −50,805 −50,805Consolidated net income 0 0 197,119 197,119 0 197,119Minority interest in netincome of consolidatedsubsidiaries 0 0 −24,995 −24,995 24,995 0At Dec. 31, 2011 306,776 102,258 197,687 606,721 378,248 984,969132
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttSustainable developmentAnnex to the consolidated financialstatements 2011I. General notes to the consolidatedfinancial statementsFlughafen München GmbH, Munich, manages <strong>and</strong>coordinates all of the businesses in the FMG Groupof companies. As the Group’s parent company, FMGhas published consolidated financial statements <strong>and</strong> aconsolidated management report for the FMG Groupfor fiscal 2011 in accordance with Section 290 of theGerman Commercial Code (HGB).With the exception of EFM – Gesellschaft für Enteisenund Flugzeugschleppen am Flughafen München mbH,whose fiscal year runs from October 1 to September30, the fiscal year for the FMG Group <strong>and</strong> its consolidatedcompanies corresponds to the calendar year.The consolidated income statement was preparedaccording to the total cost method.1. Scope of consolidationBesides Flughafen München GmbH, the consolidatedfinancial statements cover the following companies.- Flughafen München GmbH subsidiaries <strong>and</strong> specialpurpose entities included in the yearend accountsas fully consolidated companies:SeatShare ofcapital%aerogate München Gesellschaft für Luftverkehrsabfertigungen mbH Munich 100.0AeroGround Flughafen München GmbH Munich 100.0 1Allresto Flughafen München Hotel und Gaststätten GmbH Munich 100.0 1CAP Flughafen München Sicherheits-GmbH Freising 100.0Cargogate Flughafen München Gesellschaft für Luftverkehrs abfertigungen mbH Munich 100.0 1eurotrade Flughafen München H<strong>and</strong>els-GmbH Munich 100.0 1Flughafen München Baugesellschaft mbH Oberding 60.0FM Terminal 2 Immobilien-Verwaltungsgesellschaft mbH & Co oHG Oberding 60.0 1FMV – Flughafen München Versicherungsvermittlungsgesellschaft mbH Freising 100.0 1Terminal 2 Betriebsgesellschaft mbH & Co oHG Oberding 60.0 1Beteiligungsgesellschaft mbH der FMG Freising 100.0 1MAC Grundstücksgesellschaft mbH & Co. KG Grünwald 94.9 1MALTO Grundstücks-Verwaltungsgesellschaft mbH & Co. KG Grünwald 0.0 1MFG Flughafen-Grundstücksverwaltungsgesellschaft mbH & Co. ALPHA KG Grünwald 0.0 1MFG Flughafen-Grundstücksverwaltungsgesellschaft mbH & Co. BETA KG Grünwald 0.0 1MFG Flughafen-Grundstücksverwaltungsgesellschaft mbH & Co. Gamma oHG Grünwald 0.0 1München Airport Center Betriebsgesellschaft MAC mbH Grünwald 0.01Exemption provisions apply regarding disclosure of the yearend accounts as per Section 264, Paragraph 3 <strong>and</strong> Section 264b of the German Commercial Code.- The following are included as associated companiesin Flughafen München GmbH’s consolidatedyearend accounts:Share ofSeatcapital%MediCare Flughafen München Medizinisches Zentrum GmbH Oberding 51.0EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH Freising 49.0133
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityThe following changes were made to the group ofconsolidated companies in fiscal 2011:- As of fiscal 2011, MediCare Flughafen MünchenMedizinisches Zentrum GmbH is no longer recordedin the yearend accounts as a fully consolidatedcompany but as an associated company. Given thatits sales, net income <strong>and</strong> total assets amount toless than 1 percent of the corresponding figuresfor the consolidated group, the company is not fullyconsolidated on account of its minor significance(Section 290, Paragraph 2 of the German CommercialCode).- MUCGround Services Flughafen München GmbH,Freising, was merged into AeroGround FlughafenMünchen GmbH.- The group acquired 94.9 percent of the limited partners’share in MAC Grundstücksgesellschaft mbH &Co. KG in October 2011. In addition, a third-partyshareholder resigned.Due to first-time implementation of regulations pursuantto Germany’s Accounting Law Modernization Act(BilMoG) in 2010, the following special purpose entitieswere reported as fully consolidated subsidiariesin accordance with Section 290, Paragraph 2, Item 4<strong>and</strong> Section 313, Paragraph 2, Item 1 of the GermanCommercial Code: MFG Flughafen-GrundstücksverwaltungsgesellschaftmbH & Co. ALPHA KG, MFGFlughafen-GrundstücksverwaltungsgesellschaftmbH & Co. BETA KG, MFG Flughafen-GrundstücksverwaltungsgesellschaftmbH & Co. Gamma oHG,MALTO Grundstücksverwaltungsgesellschaft mbH &Co. KG, MAC Grundstücksgesellschaft mbH & Co. KG,<strong>and</strong> München Airport Center BetriebsgesellschaftMAC mbH. The FMG Group does not have majorityrights in these special purpose entities. However, froman economic st<strong>and</strong>point, it does have a major sharein the associated risks <strong>and</strong> opportunities. MünchenAirport Center Betriebsgesellschaft MAC mbH is asubletting company; the other special purposes entitiesare real estate management companies.The Group sold its stake in Bayern Facility ManagementGmbH, Munich, valuated at equity, in March2011.2. Principles of consolidationSince fiscal 2007, capital has been consolidated in accordancewith the revaluation method for additionsto the consolidated group.Differences in assets or liabilities arising through capitalconsolidation are capitalized as goodwill underintangible assets, are written down over a useful lifeof five years, <strong>and</strong> are reported as earnings in the consolidatedincome statement.As in the prior year, assets <strong>and</strong> liabilities were valuatedin accordance with German Accounting St<strong>and</strong>ards(DRS), Section 4, “Company acquisitions in consolidatedaccounts.”Stakes in associated companies acquired since theAccounting Law Modernization Act was first appliedare reported at book value in accordance with Section312, Paragraph 1, Item 1 of the German CommercialCode. Existing investments in associatedcompanies prior to initial application of the AccountingLaw Modernization Act are reported at the proportionalshare in the equity of the associated companyas at the time of their initial consolidation in accordancewith Section 312, Paragraph 1, Item 2 of theprior version of the German Commercial Code. Theinvestments included in the consolidated yearend accountsusing the at-equity method at December 31,2011, are stated at the amount of the proportionalchange in their equity.Sales, expenses, earnings, receivables <strong>and</strong> liabilitieswithin the group of consolidated companies are setoff against one another.Internal Group income from construction projectsin fiscal 2011 was booked as other capitalized labor,overheads <strong>and</strong> material under property plant <strong>and</strong>equipment <strong>and</strong> written down accordingly. Specifically,this internal Group income comprised:€3.234 million in total from FM Terminal 2 ImmobilienverwaltungsgesellschaftmbH & Co. oHG withFlughafen München Baugesellschaft mbH <strong>and</strong> Flug -hafen München GmbH; €2.103 million in total fromTerminal 2 Betriebsgesellschaft mbH & Co. oHG withFlughafen München Baugesellschaft mbH <strong>and</strong>134
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttSustainable developmentFlug hafen München GmbH; €452 thous<strong>and</strong> fromMAC Grundstücksgesellschaft mbH & Co. KG withFlughafen München GmbH; €322 thous<strong>and</strong> fromAeroGround Flughafen München GmbH with FlughafenMünchen GmbH; <strong>and</strong> €107 thous<strong>and</strong> fromFlughafen München GmbH with Flughafen MünchenBaugesellschaft mbH. The elimination of intragroupprofits on long-term assets from these constructionprojects led to expense of €670 thous<strong>and</strong>. The eliminationof income at Flughafen München GmbH fromthe sale of long-term assets to AeroGround FlughafenMünchen GmbH, offset against the adjustment foradditional write-downs in the purchaser’s own separatefinancial statement, resulted in a consolidationeffect of €4.038 million being recognized as income.The following were adjusted for consolidated reportingpurposes: provisions in the yearend accounts ofAllresto Flughafen München Hotel und GaststättenGmbH to cover €6.262 million in restoration commitmentstoward Terminal 2 Betriebsgesellschaft mbH& Co. oHG, Flughafen München GmbH <strong>and</strong> MACGrundstücksgesellschaft mbH & Co. KG, provisionsof €4.057 million for remediation work at FlughafenMünchen GmbH for special purpose entities, <strong>and</strong> aprovision at Flughafen München GmbH with a valuationdifference of €39.800 million in the consolidatedfinancial statements.II. Accounting <strong>and</strong> valuation principles1. Intangible <strong>and</strong> tangible assetsPurchased intangible assets are recorded at theiroriginal cost <strong>and</strong> depreciated using the straight-linemethod, for the most part assuming a useful life ofthree years.Excess cost over book value from capital consolidationis capitalized as goodwill <strong>and</strong> depreciated overfive years. Goodwill created through capital consolidationin fiscal 2011 totaled €2.342 million. Existinggoodwill in separate financial statements is alsodepreciated over five years.Tangible assets are valuated at their m<strong>and</strong>atory capitalizedcost of production or original cost in accordancewith Section 255, Paragraphs 1 <strong>and</strong> 2 of theGerman Commercial Code. The costs of productioninclude material overheads where appropriate, productionoverhead, <strong>and</strong> wear, as well as consumptionor other reduction in the useful economic life of anasset if caused by production.Assets with a limited useful life are depreciated usingthe straight-line method over their anticipatedoverall service life in line with the German AirportsAssociation’s tax depreciation tables. Contrary tothese tables, Group buildings are generally depreciatedover a period of 40 to 50 years.The additional depreciation recorded by FlughafenMünchen GmbH <strong>and</strong> FM Terminal 2 Immobilien-VerwaltungsgesellschaftmbH & Co oHG in the accountsprepared for tax purposes <strong>and</strong> the accounts preparedfor financial reporting purposes in fiscal 2011 totaled€25.099 million. This concerns buildings as defined inSection 7, Paragraph 4, Item 1 of the German IncomeTax Code that are classed as operating businessassets <strong>and</strong> are nonresidential in character – essentially,buildings belonging to the passenger h<strong>and</strong>lingfacilities.In fiscal 2008 <strong>and</strong> 2009, in accordance with the thencurrent fiscal regulations, assets costing between€150 <strong>and</strong> €1,000 were grouped into collective items<strong>and</strong> depreciated over a period of five years using thestraight-line method, regardless of the assets’ actualuseful life. As of fiscal 2010, assets costing less than€150 <strong>and</strong> up to €410 are depreciated in full in the yearof their purchase. These low-value assets are retiredafter five years, irrespective of the aforementioneddepreciation methods.135
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility2. Financial assetsAdjustments in connection with migrating the yearendaccounts of associated companies to a consistentgroup-wide accounting <strong>and</strong> valuation systemwere so minor that none were required under Section312, Paragraph 5 of the German CommercialCode. Profits from the disposal of associated companiesare reported under income from investments inassociated companies.Other financial assets are stated at the lower of costor fair value.Low-interest employer loans are stated at their nominalvalue at the balance-sheet date.3. Current assetsInventories are mainly stated at their weighted averagecost for the past three months <strong>and</strong> are writtendown at the lower of cost or fair value to cover risksarising from slow-moving items <strong>and</strong> drops in price.Substitute plots of l<strong>and</strong> <strong>and</strong> emissions allowancesreported as inventories are capitalized at the lowerof cost or fair value.Receivables <strong>and</strong> other current assets are stated atthe lower of nominal or fair value. Identifiable risksare accounted for in valuation adjustments. Appropriateprovisions are made to cover general credit riskfrom receivables. Non-interest-bearing or low-interestreceivables are reported at their present value.Cash on h<strong>and</strong> <strong>and</strong> credit balances with banks arereported at their nominal value.4. ProvisionsProvisions for pensions were calculated accordingto actuarial principles using the Projected Unit Creditmethod <strong>and</strong> interest rates of between 4.68 percent<strong>and</strong> 5.17 percent (2010: between 4.78 percent <strong>and</strong>5.22 percent) <strong>and</strong> an anticipated rate of increase inwages <strong>and</strong> salaries of 3.00 percent (2010: 3.00 percent).A rate of increase in pensions of 2.00 percentwas assumed (2010: 2.00 percent). Life tables publishedby Prof. Klaus Heubeck were also applied.Prospective entitlements for spouses’ pensionswere calculated using the collective method. Calculationswere based on notional final ages of 63, 65<strong>and</strong> 66 years for men <strong>and</strong> 65 years for women.Provisions for phased retirement schemes set upunder old agreements are calculated in accordancewith the terms set out in Section 253 of the GermanCommercial Code <strong>and</strong> accepted actuarial rules.Pension obligations were valuated at their presentactuarial value, assuming a salary rise trend of between0.00 percent <strong>and</strong> 1.50 percent (2010: between0.00 percent <strong>and</strong> 1.50 percent). These were calculatedaccording to the 2005 G guideline tables publishedby Prof. Klaus Heubeck <strong>and</strong> monthly paymentsin advance, at an interest rate of between 3.80 percent<strong>and</strong> 3.94 percent (2010: between 3.90 percent<strong>and</strong> 3.97 percent).To meet obligations arising through phased retirementagreements <strong>and</strong> overtime credits, reinsurance agreementswere concluded which are ring-fenced fromother creditors. In fiscal 2011, the reinsurance agreementsare valued at fair value <strong>and</strong> offset against theunderlying obligations. In instances where this resultsin an excess obligation, that excess is includedin the provisions.If the current value of the reinsurance exceeds theobligations, this is included on the asset side of thebalance sheet as an active difference resulting fromoffsetting.136
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttSustainable developmentAs a result of a new collective pay agreement forapron controllers <strong>and</strong> airport fire service employees,provisions were made for phased retirement for theseroles for the first time in 2011. These provisions werealso calculated using Prof. Klaus Heubeck’s 2005 Gguideline tables, assuming monthly payments in ad -vance, at an interest rate of 5.14 percent, <strong>and</strong> a durationof 15 years. The valuation assumed that thetrend will be for apron controller salaries to rise 5.9 per -cent a year until 2016 <strong>and</strong> 3.00 percent a year from2017. A salary trend of 2.50 percent per year was as -sumed for fire service employees. Initially, no fluctuationwas taken into account for either of thesegroups.Prof. Heubeck’s 2005 G guideline tables were alsoused to calculate provisions for anniversaries <strong>and</strong>benefits. The benefit provisions were based on aninterest rate of 5.05 percent (2010: 5.06 percent)<strong>and</strong> a salary <strong>and</strong> pension trend running at 2.00 percent(2010: 2.00 percent). Anniversary provisionswere based on an interest rate of between 4.49 <strong>and</strong>4.69 percent (2010: between 4.57 <strong>and</strong> 4.69 percent)<strong>and</strong> assumed a salary trend of between 2.00 <strong>and</strong>3.00 percent (2010: 3.00 percent) <strong>and</strong> a fluctuationof between 3.00 <strong>and</strong> 10.00 percent (2010: 3.00 percent).Other provisions are carried at anticipated settlementamounts based on prudent <strong>and</strong> reasonable commercialassessment. Other provisions with terms of morethan one year are discounted at interest rates appropriateto their terms, determined <strong>and</strong> publishedby Deutsche Bundesbank in accordance with theGerman Regulation on the Discounting of Provisions.The interest rates at which provisions were discountedin 2011 were between 3.75 percent <strong>and</strong> 4.78,depending on their residual term.Based on a conservative assessment, all foreseeablerisks <strong>and</strong> losses occurring through to the balancesheetdate – even those emerging between thereporting date <strong>and</strong> the date of the preparation ofthe consolidated yearend accounts – have been addressed.5. LiabilitiesLiabilities are valuated at their respective settlementamounts. Liabilities for annuity payments are statedat their present values, with a mean interest rate of5.5 percent.6. Deferred taxesDeferred taxes are determined based on differencesbetween the times at which values are measuredfor assets, liabilities, accruals <strong>and</strong> deferrals in connectionaccounts prepared for tax purposes <strong>and</strong> accountsprepared for financial reporting purposes. Taxlosses <strong>and</strong> interest carried forward are taken into accountin the process. Valuations for controlled com -panies are conducted on the basis of the currentcorporate income tax <strong>and</strong> trade tax rates (plus reunificationtax) for the tax consolidation group. Forcompanies outside the tax consolidation group, theirindividual rates of tax apply. In accordance with theoptions provided by Section 274, Paragraph 1, Sentence2 of the German Commercial Code, deferredtax assets exceeding deferred tax liabilities are notcapitalized. Deferred taxes under Section 306 ofthe German Commercial Code are offset against deferredtaxes under Section 274.7. Currency conversionsForeign-currency receivables <strong>and</strong> liabilities with a residualterm of less than one year are valuated at themid-market spot rate on the balance-sheet date.All other foreign-currency receivables <strong>and</strong> liabilitiesare valuated at the conversion rate applicable at theinvoice date or the less favorable of the lower orhigher spot rate on the balance-sheet date.8. Derivative financial instrumentsDerivative financial instruments are valuated individuallyat their market value on the balance-sheet date.The underlying transactions <strong>and</strong> hedging transactionsare combined in a single unit of valuation if they satisfythe requirements for doing so.137
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityIII. Notes on the consolidated balance sheet <strong>and</strong>consolidated income statement1. Changes in Group fixed assetsAcquisition <strong>and</strong> production costsReclassificationsfrom currentassetsChanges toconsolidatedgroupJan. 1,Reclas - Dec. 31,2011 AdditionsRetirements si fications 2011€ thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong>Intangible assets1. Franchises, intellectual property<strong>and</strong> similar rights <strong>and</strong> assets,<strong>and</strong> licenses to such rights <strong>and</strong>assets 28,630 1,392 0 −118 −1,872 1,401 29,4332. Goodwill 0 4,963 0 2,342 0 0 7,3053. Advances on intangible assets 5 0 0 0 0 −5 028,635 6,355 0 2,224 −1,872 1,396 36,738Tangible assets1. L<strong>and</strong>, rights similar to l<strong>and</strong>, <strong>and</strong>buildings, including buildingson l<strong>and</strong> not owned 4,380,338 27,456 12,314 0 −1,601 3,718 4,422,2262. Technical equipment <strong>and</strong>machinery 1,352,641 3,201 0 −16 −31,415 5,731 1,330,1413. Other equipment, plant <strong>and</strong>office equipment 270,463 11,120 0 −578 −9,834 323 271,4944. Construction in progress <strong>and</strong>advances on fixed assets 110,167 93,750 0 0 −297 −11,168 192,4526,113,609 135,527 12,314 −594 −43,147 −1,396 6,216,313Financial assets1. Investments in associatedcompanies 4,038 2,380 0 −901 −2,156 0 3,3612. Other loans 327 13 0 0 −101 0 2394,365 2,393 0 −901 −2,257 0 3,6006,146,609 144,275 12,314 729 −47,276 0 6,256,651138
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttCumulative depreciationBook valuesJan. 1,2011 AdditionsChanges toconsolidatedgroupRetirementsReclas -si ficationsDec. 31,2011Dec. 31,2011Dec. 31,2010€ thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong>25,008 1,781 −109 −1,872 0 24,808 4,625 3,6230 0 0 0 0 0 7,305 00 0 0 0 0 0 0 525,008 1,781 −109 −1,872 0 24,808 11,930 3,6281,247,182 90,782 0 960 0 1,338,924 3,083,302 3,133,1551,072,720 48,082 −16 −31,343 2 1,089,445 240,696 279,921227,119 13,753 −453 −9,754 −2 230,663 40,831 43,3440 0 0 0 0 0 192,452 110,1672,547,021 152,617 −469 −40,137 0 2,659,032 3,557,281 3,566,5870 0 0 0 0 0 3,361 4,0380 0 0 0 0 0 239 3270 0 0 0 0 0 3,600 4,3652,572,029 154,398 −578 −42,009 0 2,683,840 3,572,811 3,574,580139
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityInvestment in associatesIn the fiscal year reviewed, MediCare Flughafen MünchenMedizinisches Zentrum GmbH is no longer re -ported in the consolidated yearend accounts as anaffiliated company but as an associated company. Itis carried at the value of the attributable equity shareof €227 thous<strong>and</strong> as at the time of the transitionalconsolidation. In the review year, the carrying valueincreased to €300 thous<strong>and</strong> through a share of€73 thous<strong>and</strong> in MediCare’s net profit for the year.EFM’s carrying value grew from €2.910 million at January1, 2011, to €3.061 million at December 31, 2011.Over the same period, the unit generated a proportionatenet profit for the year of €2.307 million with apayout of €2.156 million.2. Receivables <strong>and</strong> other assetsOther assets totaling €20.433 million are due withinmore than one year (2010: €21.424 million). All otherreceivables <strong>and</strong> other assets are due within one year.Receivables from affiliated <strong>and</strong> associated companiesof €169 thous<strong>and</strong> (2010: €0 thous<strong>and</strong>) <strong>and</strong> €428 thou -s<strong>and</strong> (2010: €258 thous<strong>and</strong>), respectively, result entirelyfrom the provision of goods <strong>and</strong> services.3. EquityThe FMG Group’s retained earnings comprise otherretained earnings from Flughafen München GmbH,eurotrade Flughafen München H<strong>and</strong>els-GmbH, Aero-Ground Flughafen München GmbH, CAP FlughafenMünchen Sicherheits-GmbH, <strong>and</strong> Flughafen MünchenBaugesellschaft mbH, <strong>and</strong> earnings from consolidationentries <strong>and</strong> from subsidiaries’ net income.The Group’s consolidated net profit at December 31,2011, is calculated as follows:€ thous<strong>and</strong>Consolidated net income 197,119Minority interest in net income –24,995Allocation to other retained earnings –5,346Consolidated profit carried forward 19,765Consolidated net profit 186,543The minority interests comprise Flughafen MünchenBaugesellschaft mbH (€13 thous<strong>and</strong>), FM Terminal2 Immobilien-Verwaltungsgesellschaft mbH(€10.000 mil lion), Terminal 2 BetriebsgesellschaftmbH & Co oHG (€1.210 million), MFG Flughafen-Grund stücksver wal tungsgesellschaft mbH & Co.ALPHA KG (€145.006 million), MFG Flughafen-Grundstücksverwaltungs gesellschaft mbH & Co. BETAKG (€168.312 million), MFG Flughafen-GrundstücksverwaltungsgesellschaftmbH & Co. Gamma oHG(€50.871 million), MALTO GrundstücksverwaltungsgesellschaftmbH & Co. KG (€5.575 million), MACGrundstücksgesellschaft mbH & Co. KG (negative€58 thous<strong>and</strong>), <strong>and</strong> München Airport Center Betriebs -gesellschaft MAC mbH (negative €2.681 million).The change in consolidated equity is presented separatelyin the equity table.4. ProvisionsProvisions for deferred taxes in the FMG Group’sconsolidated financial statements total €15.995 million(2010: €25.610 million).In fiscal 2011, the FMG Group had other provisionstotaling €183.740 million (2010: €181.279 million).These essentially comprise €10.400 million (2010:€89.900 million) for the restructuring of our groundh<strong>and</strong>ling activities, €17.749 million (2010: €11.838 million)for settlement backlogs <strong>and</strong> future obligationsin connection with phased retirement programs,€78.169 million (2010: €9.476 million) for the regionalimpact fund, €3.351 million (2010: €4.523 million) forthe fulfillment of statutory requirements concerningfire extinguishing systems, <strong>and</strong> €21.885 million(2010: €19.083 million) for maintenance work, majorrepairs, restoration commitments <strong>and</strong> outst<strong>and</strong>inginvoices for construction work.In accordance with Section 246, Paragraph 2, Sentence2 of the German Commercial Code, entitlementsfrom reinsurance contracts that are ring-fencedfrom other creditors <strong>and</strong> are solely for the purposeof meeting liabilities from phased retirement obligationscan be offset against these obligations. Theacquisition costs of the assets in connection withphased retirement programs amount to €12.471 million(2010: €14.331 million). The figures representthe current value as determined by experts at AllianzLebensversicherungs AG. At the balance sheet date,the settlement backlog of the offset liabilities totaled€20.481 million (2010: €26.169 million).140
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttSustainable development5. LiabilitiesLiabilities tableDecember 31, 2011 December 31, 2010TotalResidual termup to 1 yearResidual term1 to 5 yearsResidual termover 5 yearseTotalResidual termup to 1 year€ thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong>Liabilities to shareholders ofthe parent company 15,948 15,948 0 0 151,982 151,982Liabilities to banks 1,742,155 84,467 836,224 821,464 1,763,145 78,288Trade liabilities 73,627 69,202 4,425 0 58,840 55,386Liabilities to affiliatedcompanies 657 542 115 0 0 0Liabilities to associatedcompanies 2,506 2,506 0 0 6,455 6,455Other liabilities 296,411 102,807 172,530 21,074 255,162 50,364of which to insurancecompanies 43,622 54 43,568 0 43,614 462,131,304 275,472 1,013,294 842,538 2,235,584 342,475Total liabilities to affiliated <strong>and</strong> associated companiesof €657 thous<strong>and</strong> (2010: €0 thous<strong>and</strong>) <strong>and</strong> €2.506 mil -lion (2010: €6.455 million), respectively, include€530 thous<strong>and</strong> (2010: €0 thous<strong>and</strong>) <strong>and</strong> €1.599 million(2010: 4.652 million) from cash managementwithin the Group <strong>and</strong> €12 thous<strong>and</strong> (2010: €0 thou -s<strong>and</strong>) <strong>and</strong> €907 thous<strong>and</strong> (2010: €1.803 million) inaccounts payable, <strong>and</strong> €115 thous<strong>and</strong> (2010: €0 thous<strong>and</strong>)in outst<strong>and</strong>ing contributions.Under the terms of a master loan agreement <strong>and</strong> asyndicate agreement concluded with two subsidiaries,the financing banks have as security the cessionof entitlements from rents, l<strong>and</strong> use agreements <strong>and</strong>insurance contracts, <strong>and</strong> the temporary transfer oftitle to Terminal 2 buildings <strong>and</strong> structures, to extensionsabove <strong>and</strong> below ground, <strong>and</strong> to superstructureson these buildings <strong>and</strong> structures, includingthe extended baggage sorting hall <strong>and</strong> the plannedsatellite building. For one of the two subsidiaries, thetitle to furniture, fittings, movables <strong>and</strong> productionequipment has also been transferred temporarily. AtDecember 31, 2011, the two subsidiaries’ liabilitiesto banks totaled €924.392 million.6. Deferred tax liabilitiesDeferred tax liabilities are incurred by differences inthe valuation of fixed assets, particularly in connectionwith buildings. Differences in the accrual valuationslead to deferred tax assets which are netted againstdeferred tax liabilities <strong>and</strong> pertain essentially to thereserve formed for the restructuring of our groundh<strong>and</strong>ling activities. Losses <strong>and</strong> interest carried forwardalso incur deferred tax assets; these too arenetted. It is expected that the loss <strong>and</strong> interest carryforwardswill be used in full by 2013. Deferred taxeswere computed within Flughafen München GmbH’stax consolidation group at a corporate income taxrate, including reunification tax, of 15.825 percent<strong>and</strong> a trade tax rate of 11.83 percent (trade tax indexof 3.5 percent, multiplied by the assessment rate of338 percent). The deferred taxes of businesses outsidethe tax consolidation group are valuated on thebasis of corporate income tax (including reunificationtax) at a rate of 15.825 percent <strong>and</strong> individual tradetax rates of between 8.4 <strong>and</strong> 11.2 percent.141
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility7. Sales, earnings <strong>and</strong> expensesSales are grouped by areas of activity, correspondingto internal structures.2011 2010€ thous<strong>and</strong> % € thous<strong>and</strong> %Aviation <strong>and</strong> h<strong>and</strong>ling services 601,399 52.3 567,376 52.5Non-aviation 549,242 47.7 513,718 47.51,150,641 100.0 1,081,094 100.0Other operating income includes €69.093 million(2010: €0 thous<strong>and</strong>) from the write-back of contractuallyre quired provisions in ground h<strong>and</strong>ling. Addi tion -al other operating income items include €19.373 million(2010: €7.260 million) from the write-back of currentprovisions formed in the past but not requiredin fiscal 2011, €6.162 million (2010: €5.544 million) inincome from advertising in subsidiaries, €2.529 million(2010: €335 thous<strong>and</strong>) in revenue from the disposalof noncurrent assets, <strong>and</strong> €1.866 million (2010:€1.199 million) in ground rents.Other operating expense includes €24.657 million(2010: €21.880 million) for advertising, €13.664 million(2010: €11.042 million) for rents, leases <strong>and</strong> li -censes, €6.719 million (2010: €6.469 million) for insurance,<strong>and</strong> €10.097 million (2010: €9.040 million)for auditing <strong>and</strong> consulting.8. Income from investments in associatedcompaniesThis includes €73 thous<strong>and</strong> (2010: €0 thous<strong>and</strong>) inincome from associated companies.9. Interest earnings <strong>and</strong> expenseInterest earnings include €148 thous<strong>and</strong> (2010:€0 thous<strong>and</strong>) in interest earned on provisions.Interest expense from longer-term personnel provisionscomprises the net expense after offsettingagainst earnings from assets invested. The sole purposeof the assets invested is to meet pension <strong>and</strong>overtime payment obligations; these are ring-fencedfrom other creditors. Under the terms of Germany’sAccounting Law Modernization Act (Section 246,Paragraph 2, Sentence 2 of the German CommercialCode), €341 thous<strong>and</strong> (2010: €274 thous<strong>and</strong>) in investmentincome were offset against €695 thous<strong>and</strong>(2010: €687 thous<strong>and</strong>) in interest expense.10. Income taxesIncome tax expense of €38.228 million (2010:€37.206 million) comprises €14.303 million (2010:€8.270 million) allocated to deferred corporate incometax <strong>and</strong> trade tax liabilities, <strong>and</strong> €23.925 million(2010: €28.936 million) in advance payments <strong>and</strong>additions to provisions for corporate income tax <strong>and</strong>trade tax.11. Extraordinary gainThe extraordinary gain reported in the prior year resultedentirely from initial application of Germany’sAccounting Law Modernization Act (BilMoG).Interest expense includes a total of €5.852 million(2010: €3.241 million) in interest on long-term provisions.142
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttSustainable developmentIV. Additional notes1. Contingent liabilitiesTo address risks relating to possible back payments ofwage taxes <strong>and</strong> social security contributions <strong>and</strong>continuing balance-sheet insolvency at CAP FlughafenMünchen Sicherheits-GmbH, Flughafen MünchenGmbH issued a renewed declaration of backing upto the amount of €8.500 million on behalf of its subsidiary.This amount exceeds the subsidiary’s ownreserve.Following a judicial investigation, CAP on February25, 2011, received a notice of liability for wage tax,church tax <strong>and</strong> reunification tax for the period fromApril 2003 to August 2008 amounting to €1.186 million.CAP appealed against this on March 25, 2011,within the statutory term <strong>and</strong> applied for the suspensionof enforcement. No judicial decision on this applicationhad been reached by the time FMG’s yearendaccounts were prepared. To protect CAP’s liquidity,FMG will provide a shareholder loan of €4.500 millionif required, which will be conditionally repayable<strong>and</strong> subject to conditional interest.2. Other financial obligationsRental <strong>and</strong> lease agreements on office <strong>and</strong> businessequipment <strong>and</strong> purchasing commitments incurredexpenses of €30.374 million, of which €15.026 millionapply to fiscal 2012.At the end of fiscal 2011, FMG had €16.895 million infinancial obligations for l<strong>and</strong> purchases for which thepurchase amount is not yet or only partially due.Other financial obligations amounting to €5.272 millionfrom insurance contracts (business, terrorism<strong>and</strong> property insurance) will arise through to December31, 2012.Obligations from supply <strong>and</strong> service agreements essentiallyapply to ongoing business operations <strong>and</strong>amount to €9.533 million a year. The company alsohas additional obligations in connection with environmentalprotection measures <strong>and</strong> the honoring ofpublic-law requirements.Obligations issuing from purchasing commitmentsamount to €6.950 million.3. Derivative financial instrumentsThe FMG Group had the following derivative financialinstruments at the reporting date:- Forty-four payer swaps with a volume of€1.305 billion (including €50.000 million in followuptransactions for expiring interest swaps <strong>and</strong>€456.000 million in payer swaps concluded in fiscal2011 as interest hedges with regard to future utilizationof an existing syndicated loan agreement)<strong>and</strong> terms through to 2021. At December 31, 2011,the payer swaps had an accumulated value ofnegative €55.081 million.- Six US dollar foreign currency forwards with a vol -ume of US$9.361 million. The purpose of theseforeign exchange transactions is to secure futurepayments received in connection with the company’sinternational activities. The foreign exchangehedging transactions have a total market value ofnegative €88 thous<strong>and</strong>.All interest <strong>and</strong> currency derivatives are valuated inaggregate with their respective principal underlyingtransactions (of which some have a high probability),so there was no cause to form a reserve as ahedge against negative market values. A reserve of€249 thous<strong>and</strong> was formed to cover ineffective interestrate hedges.In addition, two loans in existence at the balancesheetdate, which have terms through to 2014 <strong>and</strong>were originally taken out in Japanese yen, weretransferred into euros by means of cross-currencyswaps (total volume: €43.568 million).143
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityThe market values of all interest derivatives <strong>and</strong> forwardexchange transactions are those quoted by thecounterparties (banks) <strong>and</strong> are determined accordingto current interest structure charts <strong>and</strong> the discountedcash flow method.Risk Underlying transaction Hedging instrument Hedge typeType Type Amount Risk AmountProspectiveeffectivenessCurrencyContracted cashflowYen loan¥6 billion(€43.6 million)Yen forwardsale¥6 billion Micro hedge Critical termmatchCurrencyAnticipated cashflowConsultingm<strong>and</strong>ate,invoiced inOmani rialsOMR3.6 millionDollar forwardsales 1US$9.4 millionMicro hedgeCritical termmatchInterestContracted cashflowVariable-interestloans€500 million Payer swaps €500 million Micro hedge Critical termmatchInterestContracted cashflowVariable-interestloans€726 million Payer swaps €726 million Micro hedge Critical termmatchInterestContracted cashflowVariable-interestloans€29.4 million Payer swaps €29.4 million Micro hedge Critical termmatch1Forward sales in US dollars were made on account of non-liquid hedging instruments in Omani rials.The Omani rial has a fixed parity with the US dollar.4. Auditors’ remunerationIn fiscal 2011, the auditors of the Group’s financialstatements received €90 thous<strong>and</strong> for auditing <strong>and</strong>€95 thous<strong>and</strong> for other services.5. Business with related parties (persons<strong>and</strong> companies) as defined in the GermanCommercial CodeUnder Section 314, Paragraph 1, Item 13 of the GermanCommercial Code, related parties (companies<strong>and</strong> persons) are legal or natural persons who are ableto exert an influence on Flughafen München GmbHor who are controlled by or are subject to significantinfluence by Flughafen München GmbH.Business with related parties largely consists ofdealings conducted with subsidiaries <strong>and</strong> affiliatedcompanies. These business dealings relate for themost part to rentals, services <strong>and</strong> finance. Such businessis conducted on a regular basis <strong>and</strong> on markettypicalterms.No business dealings are conducted at market-atypicalprices.144
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reportt6. Executive boardMembers of the executive board of FlughafenMünchen GmbH, the Group’s corporate parent,in 2011:Dr. Michael KerklohPresident <strong>and</strong> Chief Executive OfficerThomas WeyerVice President <strong>and</strong> Chief Financial OfficerChief Infrastructure Officer7. Supervisory boardMembers of the supervisory board in 2011:Georg FahrenschonMinister of State,Bavarian State Ministry of Financechairman(until November 3, 2011)Dr. Markus SöderMinister of State,Bavarian State Ministry of Financechairman(from December 16, 2011)Free State of BavariaJosef PoxleitnerDirector-General,Board of Building <strong>and</strong> Public Works in theBavarian State Ministry of Home AffairsDr. Hans SchleicherDirector-General,Bavarian State Ministry for Economic Affairs,Infrastructure, Transport <strong>and</strong> TechnologyKlaus WeigertDirector-General,Bavarian State Ministry of FinanceFederal Republic of GermanyChristiane Wietgrefe-PeckmannSenior Principal,Federal Ministry of FinanceMichael OdenwaldDirector-General,Federal Ministry of Transport,Building <strong>and</strong> Housing(from January 18, 2011)City of MunichChristian UdeChief Mayor, City of MunichDieter ReiterCouncilor, City of MunichEmployee representativesThomas BihlerClerical employee,employee representativeHeinrich BirnerDirector of the ver.di labor union,Munich regionvice chairman(from December 16, 2011)Michael BörriesCertified aircraft h<strong>and</strong>lerHans-Joachim BuesSenior Vice President Corporate Communications,executive employees’ representativeWilly GraßlClerical employeeOrhan KurtulanCertified aircraft h<strong>and</strong>ler,full-time works councilorAnna MüllerClerical employee,full-time works councilorSabine PetersClerical employee145
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility8. Executive board remuneration <strong>and</strong> loansRemuneration of executive board members consistsof a fixed salary <strong>and</strong> a variable, performance-basedcomponent:Executiveremuneration in 2011 Fixed Variable Total€ thous<strong>and</strong> € thous<strong>and</strong> € thous<strong>and</strong>9. EmployeesExcluding members of executive management butincluding all employees on unlimited, fixed-term <strong>and</strong>trainee contracts, the FMG Group had an averageheadcount of 6,670 employees in fiscal 2011. In addition,there were 222 apprentices in vocational trainingprograms.Dr. Michael Kerkloh 262 150 412Thomas Weyer 236 118 354Total 498 268 766In addition, executive board members received emol -uments in kind <strong>and</strong> contractually agreed fringe benefitstotaling €24 thous<strong>and</strong> in 2011. Reserves werealso formed at December 31, 2011, to cover futurepension obligations, amounting to €1.221 million.Munich, April 30, 2012Dr. Michael KerklohThomas WeyerFormer members of executive management <strong>and</strong>surviving dependents of former members receivedemoluments of €742 thous<strong>and</strong> in fiscal 2011. Reservesof €8.529 million were formed to cover futurepension payments <strong>and</strong> accrued pension rights ofsurviving dependents.Emoluments paid to supervisory board memberstotaled €16 thous<strong>and</strong> (2010: €17 thous<strong>and</strong>).Executive board members did not receive any loans,nor were there any contingent liabilities in their favor.146
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsq Independent auditor’s reportSustainable developmentIndependent auditor’s reportWe, the appointed auditors, have audited the consolidatedfinancial statements prepared by FlughafenMünchen GmbH, Munich, comprising the balancesheet, income statement, cash flow statement, equitystatement, notes to the consolidated financial statements,<strong>and</strong> consolidated management report for thefiscal year from January 1 to December 31, 2011. Thepreparation of the consolidated financial statements<strong>and</strong> the consolidated management report in accordancewith German commercial-law requirementsis the responsibility of the company’s management.Our responsibility as auditors is to express an opinion,based on our audit, of the consolidated financialstatements <strong>and</strong> of the consolidated managementreport.We conducted our audit of the consolidated financialstatements in accordance with Section 317 of theGerman Commercial Code (HGB) <strong>and</strong> with generallyaccepted st<strong>and</strong>ards for the auditing of financial statementsas issued by the Institute of Public Auditors inGermany. These st<strong>and</strong>ards require that we plan <strong>and</strong>perform the audit in such a manner that, under theprinciples of proper accounting, any misstatementsmaterially affecting the presentation of the net assets,financial position <strong>and</strong> results of operations in the consolidatedfinancial statements or in the consolidatedmanagement report are detected with reasonableassurance. Knowledge of the business activities <strong>and</strong>the economic <strong>and</strong> legal environment of FlughafenMünchen GmbH <strong>and</strong> its group of companies <strong>and</strong>expectations as to possible misstatements are takeninto account in the determination of audit procedures.The effectiveness of the accounting-related internalcontrol system <strong>and</strong> the evidence supporting the disclosuresin the consolidated financial statements <strong>and</strong>the consolidated management report are examinedprimarily on a test basis within the framework of theaudit. The audit encompasses assessing the annualfinancial statements of those entities included inconsolidation, the determination of entities to beincluded in consolidation, the accounting <strong>and</strong> consolidationprinciples applied <strong>and</strong> significant estimatesmade by management, as well as evaluating the overallpresentation of the consolidated financial statements<strong>and</strong> the consolidated management report. Webelieve that our audit provides a reasonable basis forour opinion.Our audit has not led to any reservations.Based on the findings of our audit, it is our view thatthe consolidated financial statements comply with thestatutory requirements <strong>and</strong> give a true <strong>and</strong> fair pictureof the net assets, financial position <strong>and</strong> results of operationsof Flughafen München GmbH in accordancewith these requirements. The consolidated managementreport is consistent with the consolidated finan -cial statements <strong>and</strong>, as a whole, provides an appropriaterepresentation of the Group’s position <strong>and</strong> itsfuture business opportunities <strong>and</strong> risks.Munich, May 4, 2012Deloitte & Touche GmbHAppointed auditorsDornAuditorHehlAuditor147
IntroductionCompany profile <strong>and</strong> strategy Service portfolio Communication <strong>and</strong> social responsibility(15.12%foreign nationals inthe workforceFlughafen MünchenGmbH’s strategicsustainability programis guiding sustainabledevelopment atMunich Airport€656.1millionQin value added148
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentp <strong>Sustainability</strong> programp <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexSustainable development150 <strong>Sustainability</strong> program156 <strong>Sustainability</strong> indicators170 <strong>Report</strong> profile172 GRI index149
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility<strong>Sustainability</strong> programOur strategic sustainability program at FlughafenMünchen GmbH spotlights future opportunities <strong>and</strong>risks we face <strong>and</strong> provides us with a roadmap for ouronward development <strong>and</strong> our mission through to 2015.Our 2011 sustainability program builds on our prioryearprogram <strong>and</strong> comprises four focus areas withspecific sustainability targets.The program defines an overall target as well as near,intermediate <strong>and</strong> longer-term initiatives for each focusarea. It also sets deadlines by which these initiativesare to be completed <strong>and</strong> tracks how far each has pro -gressed. In our environmental <strong>and</strong> climate protectionfocus area, we also operate a comprehensiveenvironmental program based on our EMAS <strong>and</strong> DINEN ISO 14001-certified environmental managementsystem; this program is covered in detail in our annualenvironmental statements.Field Initiative Activities in 2011 Status in2011Target dateCompany <strong>and</strong> governanceTarget: Sustain value creation through a yield-driven business model <strong>and</strong> continued investment in our locationReturn on capital employedGenerate an ROCE higher thanthe general market weightedaverage cost of capital (WACC)ROCE of 9.3% achieved; samelevel to be maintained goingforwardOngoing OngoingHigher earningsJUMP, a group-wide program ofmeasures to improve earningsImplementation of JUMPprogram initiatives100% 2011Growth <strong>and</strong> expansion of theairport’s infrastructure as per ourmaster planProcessing to deadline of objectionsraised regarding our thirdrunway; completion of planningfor satellite as per general developmentplanOngoing OngoingExpansion of the airportIncorporation of sustainabilitycriteria into plans for expansion<strong>and</strong> reconstruction under considerationof carbon targetsMeasurement <strong>and</strong> differentialassessment of carbon figuresfor other buildings; planningof technical manual on energydesign <strong>and</strong> sustainable buildingon campusIncorporation of binding carbontargets into planning process100% 2011Ongoing OngoingCertification of selectedbuildings to German SustainableBuilding Council (DNGB)st<strong>and</strong>ardsDevelopment of certification systemfor terminals in associationwith DGNB50% 2015Target: Greater customer focus <strong>and</strong> a more attractive product <strong>and</strong> service portfolioDem<strong>and</strong>-driven product <strong>and</strong>service portfolioImprovement in the airport’squality of serviceMonitoring by means of directcustomer feedback <strong>and</strong> surveys:ACI benchmark program, AirportService Quality (ASQ), Skytraxrating, complaints managementOngoingOngoing150
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentq <strong>Sustainability</strong> programp <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexField Initiative Activities in 2011 Status in2011Dem<strong>and</strong>-driven product <strong>and</strong>service portfolioContinuation of strategic innovationmanagementContinued merging of idea pool(in-house suggestion scheme)with innovation managementsystemTighter linkage between strategydevelopment/implementation<strong>and</strong> innovation management50% 2012Planned 2012Target dateTarget: Establish management structures to foster responsible corporate leadershipAdvancement <strong>and</strong> expansion ofour strategic sustainability program<strong>and</strong> management systemContinuation of sustainabilityprojects <strong>and</strong> initiatives, incorporationof these into multi-projectmanagement systemLinkage of strategic sustainabilitymanagement with organizational,process, quality <strong>and</strong> innovationmanagementOngoing OngoingPlanned 2012Collaboration with GRI ondevelopment of updated GRIguidelines (G4)Organizational stakeholder meetingin MunichCollaboration on development ofGRI guidelines (G4)100% 201110% 2014Strategic sustainabilitymanagementIntegration of sustainability <strong>and</strong>annual reportsPreparation of a concept for integrated,cross-media reportingParticipation in International Integrated<strong>Report</strong>ing Council (IIRC)pilot program100% 201130% 2013Continued interlocking of reportingprocess10% 2012Refinement <strong>and</strong> revision offuture strategy workOptimization of internal planning<strong>and</strong> control processes10% 2013Promotion of sustainabilityawarenessPlanning <strong>and</strong> organization of informationevents on sustainabilitywith new thematic focuses10% 2013Incorporation of sustainabilitycriteria into supplier managementsystemAddition of sustainability aspectsto strategic procurement strategy45% 2013Formation of an independentcompliance unit in the companyDevelopment <strong>and</strong> implementationof a compliance strategyfor the Group <strong>and</strong> creation ofan organizational <strong>and</strong> processframework100% 2011Compliance <strong>and</strong>anticorruptionCompliance training programsCompany-wide delivery of trainingcoursesPlanned 2013Creation of a compliance managementsystem, incl. whistleblowersystemRollout of electronic whistleblowersystemPlanning <strong>and</strong> certification of compliancemanagement system100% 201180% 2012151
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityField Initiative Activities in 2011 Status in2011Target dateEnvironmental <strong>and</strong> climate protectionTarget: Company-wide expansion of environmental management systemEnvironmental managementCertification of additional subsidiariesin accordance with DIN ENISO 14001 <strong>and</strong> EMASRe-certification of FMG’s existingenvironmental managementsystemIncorporation of current thematicfocuses into environmentalmanagement programAirport Carbon Accreditation byAirports Council International(ACI)Allresto <strong>and</strong> Kempinski successfullyre-certifiedCertification of Cargogate <strong>and</strong>aerogate100% 201180% 2012Re-certification Ongoing OngoingAssessment of other relevantthematic focusesRetention of level 3 (optimization)certification awarded for successfulreduction of carbon footprintOngoingOngoingOngoingOngoingExpansion of carbon database 100% 2011Data managementCreation of an integrated databasesystem for the environmentalmanagement informationsystem (EMIS)80% 2012Target: Resource efficiency <strong>and</strong> reduction of emissions <strong>and</strong> other impactsPreparation of an annual carbonfootprint<strong>Annual</strong> process established 100% 2011Refinement of our strategyfor reducing carbon emissions(strategy to implement carbonreduction)Identification of more ways toreduce carbon output <strong>and</strong> achieve2014 milestone in preparation forcarbon-neutral growth by 202040% 2014Greenhouse gas emissionImplementation <strong>and</strong> monitoringof carbon reduction measuresAll measures to cut carbon recordedin a database. Examples ofmeasures implemented: optimizationof lighting (LED technologyin P20, MAC signage, outdoorlighting at T2 pier), optimization ofventilation (dem<strong>and</strong>-based HVACsystems in baggage sorting hall<strong>and</strong> T2)50% 2015Start of a new campus-wideprogram to save power10% 2015Greater use of renewable energyUse of renewable energy to heatbuildings: 15 gigawatt hourssupplied by Zolling biomass plant,saving 3.5 tons of carbon a year20% 2011152
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentq <strong>Sustainability</strong> programp <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexField Initiative Activities in 2011 Status in2011Target dateMobile noise measurementsconducted for local communitieson request; measurement of continuoussound level; permanenthotline for noise complaintsOngoingOngoingEmissions <strong>and</strong> other environmentalimpactsReduction of air pollutants <strong>and</strong>noiseCDA (quieter l<strong>and</strong>ing approachprocedure)OngoingOngoingEmissions-based take-off <strong>and</strong>l<strong>and</strong>ing chargesOngoingOngoingHoney monitoring program (foodstufftesting)OngoingOngoingGreen ITContinuous introduction of newmeasures as part of green ITprogramOngoingOngoingResource conservation <strong>and</strong>energy efficiencyOptimization of processes tosave resourcesRecycling of spent deicing fluid,installation of centralized metermanagement (smart metering);reduction of paper consumption(replacement of fresh-fiber paperwith recycled paper)OngoingOngoingReduction of vehicle fleet fuelconsumption <strong>and</strong> use of alternativedrive technologiesImplementation of car policy,plans to increase number ofelectric <strong>and</strong> hybrid vehiclesOngoingOngoingOptimization of energy productionConversion of chiller no. 3 to operatewith heat pumps, increaseof free cooling capacity50% 2020Workforce <strong>and</strong> work environment 1Target: Continuous improvement in efficiency <strong>and</strong> operational excellenceIntroduction of system of personnelofficersSystem of personnel officesintroduced100% 2011Process optimizationOrganizational changes to supportHR policySeparation of HR developmentfrom company’s HR Development,Training <strong>and</strong> HR Marketingunit, creation of a separate HR<strong>and</strong> Leadership Development unit50% 2012Health managementEmployability assessmentsas part of a pilot project onemployee healthDevelopment of a package ofmeasures50% 2013Incorporation of the pilot projectinto org structureCreation of Company HealthManagement unit100% 20111Following the appointment of a new head of Human Resources in the summer of 2011, a new HR strategy was developed (p. 80). This shapes the course of futurepersonnel work <strong>and</strong> is reflected in the section on the workforce <strong>and</strong> work environment in our sustainability program.153
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityField Initiative Activities in 2011 Status in2011Skills managementGroup-wide coordination of trainingmanagement by the AirportAcademyImplementation of projects withpartner organizationsUnit-specific assessments oftraining needs in collaborationwith personnel officersPreparation for integration oftraining on ground h<strong>and</strong>ling tasksImplementation of an e-learningplatform <strong>and</strong> widening ofcomputer-based training (CBT)Close collaboration with severalpartners, including MunichUniversity of Technology, LMUMunich <strong>and</strong> Bauhaus LuftfahrtPlanned 2013100% 2011100% 2011100% 2011Target dateTarget: Support FMG’s plans for growth by ensuring a supply of suitably qualified workersSkills managementHR developmentProjected HR requirements overfive yearsQuantitative gains <strong>and</strong> qualitativeenhancements100% 2011Planned 2012Management of qualitative <strong>and</strong>quantitative HR planningAchievement of initiatives’ milestoneson schedule, definition ofrecruitment mix20% 2013Employee recruitment <strong>and</strong>trainingDevelopment of additionalneeds-based vocational <strong>and</strong>work-study programsHiring of new employees for theFMG GroupReview of vocational trainingportfolioDevelopment of a recruitmentstrategyHiring of new vocational trainees(90) <strong>and</strong> external employees (871)in line with needs <strong>and</strong> requirementsPlanned 201425% 2012100% 2011Target: Establish <strong>and</strong> continuously advance leadership excellence in the FMG GroupSkills managementLeadership developmentLeadership excellence programto improve managers’ leadershipskillsImprovement of leadership skills:Implementation of leadershipexcellence program module100% 201125% 2014Redesign of employee reviews 40% 2012Definition of leadership st<strong>and</strong>ards<strong>and</strong> instrumentsDefinition <strong>and</strong> introduction ofa corporate leadership code,combined with leadership instruments40% 2012154
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentq <strong>Sustainability</strong> programp <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexField Initiative Activities in 2011 Status in2011Target dateTarget: Increase attractiveness as a company to work for <strong>and</strong> boost employee loyaltyIdentification of employer attractivenessas a core elementof HR strategyIncrease in employee loyalty overthe next five yearsSignificant increase in non-scaleprofit sharing for employeesPlanned 2015100% 2011Employee satisfactionImprovement of employeesatisfactionDevelopment of an employerbr<strong>and</strong>Expansion of marketing toschools <strong>and</strong> universitiesImplementation of the “befamily!”projectPlanning <strong>and</strong> expansion of childcaresupport100% 2011100% 2011Employer br<strong>and</strong>ing program Planned 2012Network widened successfully 100% 2011Communication <strong>and</strong> social responsibilityTarget: Develop in partnership with the regionRegional dialogueRegular communication withstakeholder groupsTalks with community representatives<strong>and</strong> policymakers in theairport region, information eventsfor businesses <strong>and</strong> advocacygroups, collaboration with localneighbors <strong>and</strong> partnersOngoingOngoingTransparency on purchasing <strong>and</strong>supply relationshipsRecording <strong>and</strong> publication ofFMG’s locally sourced purchasevolume (incl. Allresto)<strong>Annual</strong>ly<strong>Annual</strong>lyRegional value creationInformation for <strong>and</strong> communicationwith suppliers of goods <strong>and</strong>servicesCreation of information flyers forpotential suppliers of goods <strong>and</strong>services in the regionOngoingOngoingGreater activity to promotetourismStepping up of promotional activitiesat regional shows <strong>and</strong> fairs60% 2012Target: Embrace social responsibilityRegional sponsorshipsSupport for sport, social welfare,culture <strong>and</strong> education in theregionSponsorship of MiBiKids in Freising,Freising Forest SculptureShow, Freising Summer TheaterFestival, Erding Jazz Festival,Open Airding Festival, intensiveremedial school project in Wartenberg,etc.Continuation of existing sponsorshipagreements <strong>and</strong> review ofnew project requests accordingto FMG sponsorship principles,intensive dialogue with sponsorshippartners100% 2011OngoingOngoing155
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility<strong>Sustainability</strong> indicatorsThese indicators are determined based on Global <strong>Report</strong>ing Initiative (GRI) recommendations <strong>and</strong>guidelines for sustainability reporting. An overview of all G3 indicators is provided in the G3.1/AOSSGRI index. Unless stated otherwise, the figures given here pertain to the entire FMG Group, includingaffiliates in which we hold a majority stake.EC1 / Value added2011 2010FMG Group € million € millionEC1 / Value distributed2011 2010FMG Group € million € millionNet sales revenue 1,150.6 1,081.1Other earnings 136.8 73.1Total operating performance 1,287.4 1,154.2Less operating expenditure −476.9 −387.8Less depreciation <strong>and</strong> amortization −154.4 −155.6= Total value added 656.1 610.8Employees 308.1 307.0Providers of capital 94.6 100.3The state 56.3 191.3Third-party shareholders 25.0 15.4The company 172.1 −3.2= Total value distributed 656.1 610.8Our value added statement shows the difference betweenthe company’s output <strong>and</strong> the value of attendantup-front expenditures. The distribution figuresindicate the respective shares of those participatingin the value added process (employees, the state <strong>and</strong>providers of capital).Our employees again accounted for the greatestamount of value added in 2011 – more than €300.0 mil -lion in the form of wages <strong>and</strong> salaries, social securitylevies <strong>and</strong> retirement provisions.FMG’s payments to the state include taxes <strong>and</strong> theinterest paid to shareholders. In the review year, FMGagain received no state financial grants.156
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexAO1, AO2, AO3 / Air traffic figures2011 2010 2009) www.munich-airport.com/statisticsPassenger movements (total) 37,782,256 34,742,222 32,701,759Commercial traffic 37,763,701 34,721,605 32,681,067Scheduled <strong>and</strong> charter traffic 37,733,585 34,690,578 32,657,300Load factor (%) 73.7 73.8 71.5Aircraft movements (total) 409,956 389,939 396,805Commercial traffic 399,581 378,919 386,558Scheduled <strong>and</strong> charter traffic 388,044 367,760 376,770Cargo h<strong>and</strong>ledFlow air freight <strong>and</strong> air mail (t) 303,655 286,820 229,095Workload units (total, ) WLU) 40,689,133 37,487,283 34,940,264) GlossaryAO1 / Passenger figures2011Total Arrivals DeparturesPassengers (commercial, excl. transit)Domestic 9,782,554 4,879,405 4,903,149International 27,851,660 13,972,205 13,879,455Total 37,634,214 1 18,851,610 18,782,604Passengers (commercial, transit) 129,487 2 129,487 129,487Total 37,763,701 2 18,981,097 18,912,091Transfers (%) 40 3 — —1Figure for terminal passengers (only passengers boarding or exiting aircraft).2Transit passengers are only counted once <strong>and</strong> included once in the overall total.3The volume of transfer passengers is based on surveys conducted among departing passengers.157
AO2 / Aircraft movements 1 2011Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityTotal Arrivals DeparturesCommercial passenger flightsDomestic 107,229 53,679 53,550International 288,417 144,032 144,385Commercial cargo flightsDomestic 1,420 716 704International 2,019 988 1,031Commercial mail flightsDomestic 496 249 247International 0 0 0General aviation, non-commercialDomestic 5,966 3,017 2,949International 4,409 2,302 2,107Total 409,956 204,983 204,9731State flights are not included.) You can find detailedinformation on nighttimeaircraft movements herein our monthly impactreports:www.munich-airport.com/impactsAO3 / Cargo tonnage (t)2011Cargo h<strong>and</strong>led Inbound cargo Outbound cargoCargo-only flights 41,341 16,463 24,878Bellyhold cargo on passenger aircraft 244,860 106,338 138,522Total based on flights 286,201 122,801 163,400SO1 / Donations <strong>and</strong> sponsorships(Percentage of overall budget)2011 2010Sport 36 28Social welfare 30 29Education 13 13Culture 21 30158
LA1, LA4, LA13 / Total workforce 1 2011 2010 2009Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexThis year’s report is the first to include detailedwork force figures that distinguish between men <strong>and</strong>women working for Flughafen München GmbH <strong>and</strong>the FMG Group.Due to the merging of our former Ground H<strong>and</strong>lingdivision into the FMG subsidiary AeroGround <strong>and</strong> theresulting internal HR changes, we have chosen not toinclude year-on-year comparison figures (other thanfor the total workforce) in this year’s report as theywould not be representative. We will resume publishingannual comparison figures from 2012.The workforce figures for the Group include all majorityowned subsidiaries <strong>and</strong> FMG.FMG Group Women % Men % Total % Total TotalTotal workforce 2,314 33.71 4,550 66.29 6,864 100 6,862 7,100Full <strong>and</strong> part time employees 2Part time 819 11.93 521 7.59 1,340 19.52Full time 1,495 21.78 4,029 58.70 5,524 80.48Employment contracts 2Limited 456 6.64 402 5.86 858 12.50Permanent 1,858 27.07 4,148 60.43 6,006 87.50Other employeesTrainees 149 — 88 — 237 —Interns 18 — 17 — 35 —Temporary workers 20 — 541 — 561 —Workers in marginal employment 110 — 225 — 335 —Employees under collective bargainingcontracts 6,739Total employees on campus 3 29,560 29,560 29,5602011 2010 2009FMG Women % Men % Total % Total TotalTotal workforce 746 18.81 3,221 81.19 3,967 100 4,169 4,342Full <strong>and</strong> part time employees 2Part time 273 6.88 330 8.32 603 15.20Full time 473 11.92 2,891 72.88 3,364 84.80Employment contracts 2Limited 17 0.43 58 1.46 75 1.89Permanent 729 18.38 3,163 79.73 3,892 98.11Other employeesTrainees 81 — 54 — 135 —Interns 17 — 16 — 33 —Temporary workers 0 — 0 — 0 —Workers in marginal employment 4 — 39 — 43 —Employees under collective bargainingcontracts 3,8281At December 31, 20112Excl. trainees, workers in marginal employment, temporary workers <strong>and</strong> interns3Based on three-yearly workplace survey, last conducted in 2009159
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityLA13, LA15 / Age structure, gender, parental leaveFMG Group Women % Men % Total %2011Age structure of workforce 1< 30 years 586 8.54 483 7.04 1,069 15.5830 – 50 years 1,323 19.27 2,688 39.16 4,011 58.43> 50 years 405 5.90 1,379 20.09 1,784 25.99Total 2,314 4,550 6,864Parental leave 2Employees taking parental leave 104 — 65 — 169 —Employees taking part time parental leave 26 — 3 — 29 —FMG Women % Men % Total %2011Age structure of workforce 1< 30 years 162 4.08 151 3.81 313 7.8930 – 50 years 432 10.89 1,943 48.98 2,375 59.87> 50 years 152 3.83 1,127 28.41 1,279 32.24Total 746 3,221 3,967Parental leave 2Employees taking parental leave 25 — 51 — 76 —Employees taking part time parental leave 12 — 3 — 15 —1At December 31, 2011. Excl. trainees, workers in marginal employment, temporary workers <strong>and</strong> interns2Entitlement to parental leave is governed by Germany’s Parental Benefit <strong>and</strong> Parental Leave Act. Excl. trainees, workers in marginal employment,temporary workers <strong>and</strong> interns. Figures for employees who began parental leave in 2011.LA13 / Executive employees2011FMG Group %2011FMG %Total executive employees 488 7.11 1Women 74 1.08Men 414 6.03Age structure of executive employees< 30 years 12 2.46 230 – 50 years 287 58.81 2> 50 years 189 38.73 2Total executive employees 364 9.28 1Women 44 1.11Men 320 8.07Age structure of executive employees< 30 years 3 0.82 230 – 50 years 196 53.85 2> 50 years 165 45.33 21Executive employees as a percentage of total workforce atDecember 31, 20112Percentage of total executive employees160
LA2 / Employee turnover 1 2011LA2 / Mean turnover rate 1 2011LA10 / Average hours of training 1, 2 2011Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexFMG Group Hirings % Departures %Hirings <strong>and</strong> departures by age group< 30 years 515 53.59 422 43.1530 – 50 years 389 40.48 349 35.69> 50 years 57 5.93 207 21.17Total 961 — 978 —Hirings <strong>and</strong> departures by genderMen 457 47.55 610 62.37Women 504 52.45 368 37.632011FMG Hirings % Departures %Hirings <strong>and</strong> departures by age group< 30 years 81 54.73 114 25.6230 – 50 years 54 39.49 165 73.08> 50 years 13 8.78 166 37.30Total 148 — 445 —Hirings <strong>and</strong> departures by genderMen 93 62.84 367 82.47Women 55 37.16 78 17.531Incl. trainees, excl. workers in marginal employment, temporary workers <strong>and</strong> internsFMGGroupFMGFMGGroupFMGMean turnover rate 13.77 10.851Incl. trainees, excl. workers in marginal employment,temporary workers <strong>and</strong> internsAverage hours of training per employee 16.83 3 8.95Hours per male employee — 9.23Hours per female employee — 7.73Hours per executive employee — 13.06Hours per non-executive employee — 8.531At December 31, 2011. Excl. trainees, workers in marginal employment,temporary workers <strong>and</strong> interns2Mean hours of training <strong>and</strong> seminars per worker; employees only (see 1);excl. aviation security training3Figures for all majority owned subsidiaries, excl. T2 BG <strong>and</strong> eurotrade(consolidation not completed within reporting period)161
LA7 / Sick leave 1 2011 2010Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityLA7 / Health <strong>and</strong> safety 1 2011FMG GroupFMG2011Injury figures 2<strong>Report</strong>able occupational <strong>and</strong> commutingaccidents 246Total resulting days of absence(calendar days from first day) 4,852Fatal occupational accidents 01Incl. trainees, excl. workers in marginal employment, temporary workersInjury figures 2<strong>Report</strong>able occupational <strong>and</strong> commutingaccidents (calendar days from third day) 139Total resulting days of absence(calendar days from first day) 3,564Fatal occupational accidents 0Rate per 1,000 workers 3 35<strong>and</strong> interns2All workers. Injuries requiring first aid are recorded when employeesattend Munich Airport’s medical center3<strong>Report</strong>able accidents x 1,000 ÷ mean workforce size in 2011FMG Group Women Men Total Total<strong>Report</strong>ed occupational illnesses 0 3 3 1Sick leave rate (%) 4 — — 6.63 7.202011 2010FMG Women Men Total Total<strong>Report</strong>ed occupational illnesses 0 3 3 1Sick leave rate (%) 4 5.41 7.98 7.54 7.801Incl. trainees, excl. workers in marginal employment, temporary workers <strong>and</strong> interns2All workers. Injuries requiring first aid are recorded when employees attend Munich Airport’s medical center3<strong>Report</strong>able accidents x 1,000 ÷ mean workforce size in 20114Hours off sick in relation to planned working hours, incl. treatment, rehabilitation, therapy programs, etc.LA13 / Employees with disabilities 1 2011 2010FMG GroupFMG2011 2010Number of employees with limitingdisabilities 567Employees with severe disabilities (%) 8.26 7.60Number of employees with limitingdisabilities 456Employees with severe disabilities (%) 11.50 10.301As per Book IX of the Social Security Code162
LA13 / Nationalities 1 2011Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexFMG Group Women Men Total %Employee nationalitiesGerman nationals 2,112 3,915 6,027 84.88Foreign nationals 356 718 1,074 15.12Nationalities by countryGermany 2,112 3,915 6,027 84.88Turkey 28 372 400 5.63Austria 18 39 57 0.80Italy 22 45 67 0.94Greece 8 18 26 0.37Kosovo 3 23 26 0.37Bosnia <strong>and</strong> Herzegovina 3 10 13 0.18USA 6 5 11 0.15United Kingdom 6 9 15 0.21Africa 8 32 40 0.56Other 254 165 419 5.902011FMG Women Men Total %Employee nationalitiesGerman nationals 781 2,840 3,621 88.27Foreign nationals 46 435 481 11.73Nationalities by countryGermany 781 2,840 3,621 88.27Turkey 1 302 303 7.39Austria 8 27 35 0.85Italy 8 23 31 0.76Greece 2 11 13 0.32Kosovo 0 10 10 0.24Bosnia <strong>and</strong> Herzegovina 0 7 7 0.17USA 2 4 6 0.15United Kingdom 1 4 5 0.12Africa 0 9 9 0.22Other 24 38 62 1.511At December 31, 2011. Incl. trainees, excl. workers in marginal employment, temporary workers <strong>and</strong> interns163
LA1, LA2, EC7 / Employees’ areas of residence 1,2 2011EN1, EN2, AO6 / Materials used: Deicing agents 1 2010/2011 2009/2010 2008/2009Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityFMG Group % FMG %Erding 1,669 23 1,026 18Freising 1,606 23 744 25Munich 1,304 14 678 14L<strong>and</strong>shut 1,001 18 592 17Pfaffenhofen 110 2 79 2Other administrative districts 1,411 20 983 241Resident in administrative district at December 31, 2011; incl. trainees, excl. workers in marginal employment, temporary workers, <strong>and</strong> interns2Number of workers resident in administrative districtPavement deicer (t) 2 4,443 4,296 3,143Aircraft deicer (Safewing Type I) (m³) 5,629 6,237 3,991Aircraft deicer (Safewing Type IV) (m³) 1,512 1,613 1,114Recycling rate of deicer deployed (%) 65.0 68.7 73.1Number of days of winter operations 167 155 671Seasonal data2Liquid potassium formate <strong>and</strong> sodium formate granulesThe company responsible for deicing operations atMunich Airport, Gesellschaft für Enteisen und Flugzeugschleppenam Flughafen München mbH (EFM),uses glycol-based deicing fluid to clear ice fromaircraft. Planes are sprayed with the fluid by deicingvehicles.There are two types of deicer: Type I has a low viscosity<strong>and</strong> is mixed with water in a ratio of 55:45. It isheated to 85° C before being applied to aircraft. TypeIV deicer contains a thickening agent <strong>and</strong> is viscous.It is applied cold, in undiluted form.Deicer applied to aircraft at deicing points drainsalong with melted ice <strong>and</strong> snow through channelsinto underground collecting tanks. The mixture is thentaken by truck to a recycling plant for processing,where it is cleaned in a number of mechanical <strong>and</strong>chemical stages <strong>and</strong> then distilled. This process producesthe glycol-containing substance on which thedeicing agent is based. Additives are introduced tocreate type I deicer. Following lab tests <strong>and</strong> manufacturerapproval, the deicer can be used again.164
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexEN1, EN3, EN4, EN16, EN17, EN29 / Energyconsumption <strong>and</strong> emissions 1 2011 2010GJ MWh CO 2 (t) GJ MWh CO 2 (t)Scope 1 Direct energy consumption/emissionsNatural gas, gas/diesel engines CHP 2 48,185 173,465 34,727 52,979 190,725 38,438Natural gas, gas/gasoline engines CHP 2 34,171 123,015 24,627 32,262 116,143 23,407Natural gas, boiler plant 644 2,318 464 7,174 25,826 5,205Fuel oil, gas/diesel engines 5,667 20,401 5,435 5,903 21,251 5,661Fuel oil, boiler plant 9 34 9 5 19 5Liquid gas 309 1112 259 231 832 194Fuel oil, emergency power generators 106 381 101 143 514 137Natural gas consumed by EFM 3 772 2,780 556 964 3472 700Diesel <strong>and</strong> gasoline 12,758 45,929 12,181 14,339 51,620 13,645Total 102,621 369,434 78,361 114,001 410,402 87,392Scope 2 Indirect energy consumption/emissionsPurchased power 4 27,739 99,859 56,221 27,389 98,601 56,696Purchased heat 5 9,011 32,438 3,455 4,920 17,713 3,773Purchased natural gas 6 402 1448 290 563 2025 408Power supplied to external companies −17,540 −63,143 −35,550 −16,628 −59,861 −34,420Heat supplied to external companies −10,433 −37,559 −6,942 −12,267 −44,161 −9,406Cooling supplied to external companies −827 −2,978 −336 −751 −2,703 −311Natural gas supplied to external companies −402 −1,448 −290 −563 −2,025 −408Purchased power transmitted 1,497 5,391 3,035 1,487 5,354 3,079Total7 719,8837 719,4111Data accounting in accordance with GHG Protocol. Heat values <strong>and</strong> emissions factors in accordance with German Emissions Trading Authority (DEHST)requirements <strong>and</strong> Federal Environment Agency (UBA) publications. Other figures, in particular those for purchased power <strong>and</strong> heat, are taken fromUBA publications.2Combined heat <strong>and</strong> power plant3EFM: Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München419.01% of power generated from renewables (base year 2010, as per Section 42 of German Energy Industry Act)550% of district heat generated from biomass (base year 2011)6No renewables, natural gas purchases only (base year 2011)7Figures for heating, cooling <strong>and</strong> power are not aggregated for technical reasons.165
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityEN17, EN29 / Other greenhouse gasesCO 2 equivalent (t)2011 2010CH 4 – flight operations (LTO cycle 1 ) 509 617N 2O – flight operations (LTO cycle 1 ) 3,278 3,072CH 4 – feeder traffic 2 6 8N 2O – feeder traffic 2 341 338CH 4 – auxiliary power units 3 86 4 79 4N 2O – auxiliary power units 3 330 4 306 4CH 4 – engine test runs 2 4 2 4N 2O – engines test runs 10 4 10 41 L<strong>and</strong>ing <strong>and</strong> takeoff (LTO) cycle: includes all air traffic up to an altitude of914 meters (3,000 feet) l<strong>and</strong>ing <strong>and</strong> taking off at Munich Airport2Feeder traffic comprises traffic caused by passengers, visitors <strong>and</strong>employees.3 Auxiliary power units (APUs) are used to supply power <strong>and</strong> pressurized airfor aircraft systems on the ground without having to run the main engines.4EstimatedEN17, EN19 / Other greenhouse gases <strong>and</strong>ozone-depleting substancesCoolants in chillersCoolant2011Leakagequantity (kg) GWP 1 (kg/kg) CO 2 (t)Appliances in buildingsOzone-depletingR 22 51.5 1,700 88Appliances in buildings R 422D 6.5 2,623 17Appliances in buildings R 407C 2.86 1,652 5Mobile equipment (vehicle air-conditioning systems) R 134a 46.93 1,300 61Central turbo chillers R 134a 0 1,300 0Total 1701Global warming potentialEN20, AO5 / Measured pollutant concen -trations (µg/m 3 ) 1 2011Currentstatutoryannuallimit 2010 2009NO 2 concentration (nitrogen dioxide) 31 40 30 29SO 2 concentration (sulfur dioxide) 2 3 20 3 3PM 10 concentration (particulate matter) 18 40 21 201<strong>Annual</strong> mean figures2There is no annual limit on SO2 for human health, but there is for the protection of vegetation. Strictly, this limit only applies outside major urban centers ortransport facilities. As long as this figure remains so low, the limit represents a worst case estimate.166
EN8 / Total fresh water consumption 1 2011 2010 2009EN21 / Total wastewater discharge 1, 2 2011 2010 2009Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexEN20, EN29, AO5 / Air pollutant emissions (t)2011 2010) www.munich-airport.com/airNO x – flight operations (LTO cycle 1 ) 1,374.6 1,248.5NO x – feeder traffic 2 112.9 129.7SO x – flight operations (LTO cycle ) 99.7 93.4SO x – feeder traffic 0.2 0.2PM 10 – flight operations (LTO cycle) 13.0 11.9PM 10 – feeder traffic 2.8 3.51L<strong>and</strong>ing <strong>and</strong> takeoff (LTO) cycle: includes all air traffic up to an altitude of914 meters (3,000 feet) l<strong>and</strong>ing <strong>and</strong> taking off at Munich Airport2Feeder traffic comprises traffic caused by passengers, visitors <strong>and</strong> employees.) See p. 102 <strong>and</strong> p. 174Water purchased from utility (m³) 901,618 959,287 938,000Water consumption per workload unit (liters) 22.2 25.6 26.81Includes all companies on the airport campusTotal wastewater discharged from Munich Airport to treatment facility (m³) 2,265,382 2,244,561 2,234,545Wastewater consumption per workload unit (liters) 55.7 59.9 63.91Includes all companies on the airport campus2Wastewater discharged to treatment facility comprises domestic wastewater, deicing water <strong>and</strong> rainwater167
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityEN22, EN24, EN27 / Reclaimed materials/wasteby type (t) <strong>and</strong> disposal method2011 2010Change2011/2010 Disposal <strong>and</strong> recyclingWaste from aircraft interior cleaning 1 — 3,974 —Waste for disposal/prohibited liquids (terminals) 212 200 6.0%Waste for disposal from facilities 2 504 401 26.0%Munich North thermal power plant(energy recovery)RecyclingPaper, paperboard, cardboard from aircraft 3Paper, paperboard, cardboard from facilities2731,6061,2882,035−79.0%−21.0%Sorting facility <strong>and</strong> paper factory inMunich/ Schrobenhausen (paperrecycling)Mixed reclaimed materials/waste for recyclingfrom facilities 2,878 3,086 −7.0%Sorting facilities/specialist recyclingMixed glass 130 161 −19.0%operators in Eitting, Schwaig <strong>and</strong>Wood 304 280 8.0% Munich (recycling of secondary rawBulk garbage 319materials)Other materials (e.g. plastic foils, polystyrene) 134 240 −44.0%Food waste 4 827 792 4.0% Biogas plant (energy recovery)Other problem waste (FMG only) 523 438 19.0% Recycling/disposal operatorsHazardous waste (FMG only) 319 268 19.0%<strong>and</strong> problem waste specialists inMunich <strong>and</strong> Ebenhausen (energyrecovery from secondary fuels,Concrete demolition/construction waste 448 331 35.0% recycling)Total quantity 8,475 13,494 −37.0%1Disposal is no longer FMG’s responsibility <strong>and</strong> was outsourced on January 1, 2011, to a specialist contractor workingon behalf of an animal carcass disposal company in Erding.2Classed in part as mixed reclaimable materials/waste for recycling due to high quality of content3Quantity from January to March 2011. From April 1, 2011, disposal outsourced to specialist operator <strong>and</strong> no longerh<strong>and</strong>led by FMG4Allresto not included as of November 1, 2011 (exception: in Terminal 2)Munich Airport operates as a service provider, collectingwaste <strong>and</strong> recoverable materials from tenants,leaseholders, airlines <strong>and</strong> other organizations on campusfor recycling <strong>and</strong> energy recovery.168
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programq <strong>Sustainability</strong> indicatorsp <strong>Report</strong> profilep GRI indexAO7 / Measured noise levels 1 (dB)2011 2010 2009Night Day Night Day Night Day) www.munich-airport.com/aircraft-noiseBr<strong>and</strong>stadel 47 58 48 58 46 58Pallhausen 42 55 42 55 40 55Reisen 50 56 50 55 48 55Viehlassmoos 43 56 43 55 41 541Continuous sound level (Leq3) in dB(A) recorded at four measuring stations on main departure routes during the year’s six busiest monthsSince the enactment of new aviation noise legislationin Germany on June 7, 2007, the key metric appliedin assessing aviation noise exposure has been theenergy-equivalent ) continuous sound level Leq3during the day <strong>and</strong> at night. Exposure assessmentsalso take the noise level frequency at night into account.Because of variance in the operating direction,changes to departure routes, changes in route usage,<strong>and</strong> differences in operating times on account of closures(due to extreme weather or technical problems,for example), the figures for different years are notdirectly comparable.) GlossaryAO7 / Population growth in neighboringcommunities (residents)2011 1 2010 1 2009 1Stadt Freising (Freising district) — 45,223 45,118Marzling (Freising district) — 3,099 3,073Oberding (Erding district) — 5,384 5,358Hallbergmoos (Freising district) — 9,266 9,0421As at December 31. Source: Bavarian State Office of Statistics <strong>and</strong> Data Management. Figures for 2011 were not available at press time.2.8, EN11, EN13 / Airport area <strong>and</strong> green areas (ha)2011 2010 2009Total site, utility <strong>and</strong> planned functional areas 1 1,575 1,575 1,575Paved area 632 632 628Unpaved area 943 943 947Total additional green areas 700 697 672Compensatory mitigation areas 2 350 347 347Greenbelt 3 250 250 250Eco l<strong>and</strong> reserve for future expansion measures 100 100 751Zone I (inside airport perimeter fence)2Zone III (outside airport perimeter fence)3Zone II (outside airport perimeter fence)169
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility<strong>Report</strong> profile) See p. 172Contents <strong>and</strong> structure of the reportQuick to recognize the value of integrated corporatereporting as means of presenting a more all-encompassingpicture of an organization’s performance, Flug -hafen München GmbH is currently taking part in aworldwide pilot project initiated by the InternationalIntegrated <strong>Report</strong>ing Council (IIRC). The IIRC has setout to promote a new approach to reporting that meetsthe interests <strong>and</strong> expectations of all of an organization’sstakeholders, especially those of financial mar -ket investors. This approach presents a detailed pictureof the social <strong>and</strong> environmental context alongside anorganization’s economic performance. <strong>Perspectives</strong>2011 is Flughafen München GmbH’s second combinedreport.The ground covered by the combined report is de -fined, firstly, by our sustainability matrix, sustainabilitypro gram <strong>and</strong> sustainability target performance <strong>and</strong>,sec ondly, by business <strong>and</strong> financial reporting requirements.Besides detailing our integrated corporatestrategy <strong>and</strong> our diverse businesses, the report focuseson our plans to exp<strong>and</strong> the airport’s infrastructure<strong>and</strong> on the efforts undertaken by the FMG Group toengage with its local communities <strong>and</strong> wider surroundingregion, to advance <strong>and</strong> retain employees, to protectthe environment, <strong>and</strong> to combat climate change.Other sections in the report include our consolidatedyearend accounts <strong>and</strong> management report, <strong>and</strong> keyperformance indicators for all three of our sustainabilityfocus areas.The report follows Global <strong>Report</strong>ing Initiative (GRI)Version G3.1 guidelines <strong>and</strong> the sector supplementsfor airports. It covers all core indicators, plus additionalindicators where relevant <strong>and</strong> applicable. The ) GRIindex contains page references for all the individualGRI indicators covered in the report. <strong>Perspectives</strong>2011 complies with Application Level A+ of the GRIguidelines. The GRI has reviewed the report to verifythat it conforms to their guidelines <strong>and</strong> has confirmedthat the report is a complete <strong>and</strong> correct implementationat level A+.The information provided on the FMG Group’s assets,finances <strong>and</strong> earnings follows German commerciallaw requirements <strong>and</strong> has been audited by the firmDeloitte & Touche GmbH in accordance with Section317 of the German Commercial Code (HGB) <strong>and</strong> withprinciples for the auditing of financial statements de -fined by the Institute of Public Auditors in Germany(IDW). The audit was completed on May 4, 2012, <strong>and</strong>the financial statements were approved without reservations.Limits of scopeThe period reviewed is the 2011 fiscal year (January 1to December 31, 2011). The data presented generallypertains to this reporting period or to the status at theend of said period. As <strong>and</strong> where information relatesto other periods, this is indicated accordingly. Thecombined report is an annual publication. The previouscombined report, covering fiscal 2010, was publishedin 2011.Unless stated otherwise, the indicators <strong>and</strong> informationpresented in the report apply to the entire Group,including its subsidiaries. In instances where informationonly applies to Flughafen München GmbH, this isindicated accordingly.All of the statements in this report that are not basedon historical information are forward-looking. They takeinto account risks <strong>and</strong> uncertainties but not any futurechanges in global economic conditions, legal requirements,market conditions, competitors’ activities, orother factors beyond the influence <strong>and</strong> control of FMG.170
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programP <strong>Sustainability</strong> indicatorsq <strong>Report</strong> profilep GRI indexCertificationData measurement techniques <strong>and</strong> basesof calculationsAll of the information <strong>and</strong> figures presented in this re -port were prepared <strong>and</strong> collected by the relevant or -gan izational units for the reporting period using representativemethods.The notes on the consolidated yearend accounts in -clude detailed explanations of the methods <strong>and</strong> con -trols employed in preparing the financial data presented.Human resources data included in the coverage ofour social <strong>and</strong> environmental performance is collected<strong>and</strong> evaluated in an electronic HR management system.Environmental data is recorded systematically inour environmental management system according toEMAS <strong>and</strong> DIN EN ISO 14001 st<strong>and</strong>ards <strong>and</strong> is subjectto external validation by a certified environmentalauditor. Carbon emissions are calculated as per thespecifications of the Greenhouse Gas Protocol. Heatvalues <strong>and</strong> emissions factors subject to emissionstrading are recorded in accordance with German EmissionsTrading Authority (DEHST) guidelines. Otherfigures, such as those for purchased power <strong>and</strong> heat,are obtained from Federal Environment Agency (UBA)publications.I, Dr. Reiner Beer, an accredited environmental auditor(DE-V-0007), confirm that the contents of FlughafenMünchen GmbH’s 2011 integrated report present anaccurate picture of the organization <strong>and</strong> its activities inaccordance with Global <strong>Report</strong>ing Initiative (GRI) G3.1reporting st<strong>and</strong>ards <strong>and</strong> the sector supplement forairports. I also confirm that the information <strong>and</strong> figurescontained in the 2011 report have been reviewed <strong>and</strong>are reliable. The review was conducted on the basis ofFlughafen München GmbH’s 2011 report. The scopeof the review, as carried out by Intechnica Cert GmbH,encompasses all of the topics covered in the 2011 reportother than the consolidated financial statements.The latter were reviewed by the appointed financialauditors, Deloitte & Touche GmbH, in accordance withSection 317 of the German Commercial Code (HGB)<strong>and</strong> approved on May 4, 2012.Munich, June 25, 2012Dr. Reiner BeerEnvironmental audit organizationIntechnica Cert GmbH, DE-V-0279Certificate no. SVW 097-2012It would exceed the scope of this report to cover allof our activities at Munich Airport in full. Other topicsare therefore treated in our detailed environmentalstatement for 2011 <strong>and</strong> in our abbreviated environmentalstatement for 2012 (EMAS). We also publishadditional information <strong>and</strong> the results of studies <strong>and</strong>analyses on the ) Internet.) www.munich-airport.com/company171
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityGRI indexGRI indicators Remarks Page reference Status1. Strategy <strong>and</strong> analysis1.1 Vision <strong>and</strong> strategy/Foreword by executive5management1.2 Key impacts, risks <strong>and</strong> opportunities 123–1262. Organization profile2.1 Name of the organization Flughafen München GmbH 262.2 Most important br<strong>and</strong>s, products or services 27, 49–54, 55–59, 1132.3 Operational structure 262.4 Location of the organization’s headquarters Munich, Germany 262.5 Countries in which the organization operates Munich, Germany 262.6 Nature of ownership <strong>and</strong> legal form 262.7 Markets Information on aircraft movements can alsobe found in our statistical annual report <strong>and</strong>traffic reports.2.8 Scale of the organization Details of destination airports <strong>and</strong> the carriersserving Munich Airport in the review yearare published in our annual statistical report.2.9 Significant changes in the organization’s size,structure or ownership27, 29, 46–50, 51–54,www.munich-airport.com/statistics26, 28–30, 46–47, 116, 130,www.munich-airport.com/statistics26, 36–37, 41, 1132.10 Awards received in the review period 9, 53, 97,www.munich-airport.com/awards3. <strong>Report</strong> parameters3.1 <strong>Report</strong>ing period 1703.2 Date of most recent previous report 1703.3 <strong>Report</strong>ing cycle 1703.4 Contact points regarding the report 1843.5 Process of defining report content 34–35, 170–1713.6 Boundary of the report 133–135, 170–1713.7 Limitations on the scope or boundary133–135, 170–171of the report3.8 Joint ventures, subsidiaries, outsourced133–134operations3.9 Data measurement techniques <strong>and</strong> the bases133–134, 170–171of calculations3.10 Explanation of the effect of any re-statements113, 133, 170–171of information provided in earlier reports3.11 Changes in reporting scope, boundary or113, 133, 170–171measurement methods3.12 GRI content index 1733.13 External assurance for the report 147, 171Status: not covered partially covered covered in full T Core indicator T Additional indicator172
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programP <strong>Sustainability</strong> indicatorsP <strong>Report</strong> profileq GRI indexGRI indicators Remarks Page reference Status4. Governance, commitments <strong>and</strong> engagement4.1 Governance structure of the organization 4, 6–7, 33, 121, 145,www.munich-airport.com/governance4.2 Independence of supervisory board chairman 121, 1454.3 Independent members of highest governancebody4.4 Mechanisms for shareholders <strong>and</strong> employeesto provide recommendations or direction to thehighest governance body4.5 Linkage between compensation of the governancebodies, executives <strong>and</strong> senior managers<strong>and</strong> the organization’s performance4.6 Processes in place to ensure conflicts of interestare avoided4.7 Qualifications <strong>and</strong> expertise of the members ofthe highest governance body for guiding theorganization’s strategy on economic, environmental,<strong>and</strong> social topics4.8 Mission, values, codes of conduct <strong>and</strong> principles4.9 Procedures of the highest governance bodyfor overseeing the organization’s economic,environmental, <strong>and</strong> social performance4.10 Processes for evaluating the highest governancebody’s own performance with respectto economic, environmental, <strong>and</strong> social performance4.11 Explanation of how the precautionary principleis addressed4.12 Externally developed charters, principles orinitiatives to which the organization subscribesor endorses121, 14533, 12131–32, 146121–12331–3531,www.munich-airport.com/missionwww.munich-airport.com/values31–33, 121, 123–12631–3356–59, 123–12650, 53–54, 66, 70, 96–974.13 Memberships 35, 66, 69, 70, 99–100,www.munich-airport.com/stakeholderswww.airfolgsregion.de4.14 List of stakeholder groups 66,www.munich-airport.com/stakeholders4.15 Basis for identification of stakeholder groups 66–674.16 Engagement of stakeholder groups Corporate image analysis conducted in 2010:“Munich Airport as seen by its neighbors”available herep4.17 Response to topics <strong>and</strong> concerns raised bystakeholder groups34, 55–56, 66–69,www.munich-airport.com/stakeholderswww.munich-airport.com/publications34, 36–42, 66, 69–71,www.munich-airport.com/stakeholdersEconomic performance indicatorsManagement approach 31–35, 36–37, 69–77, 80–85, 150–152EC1 Direct economic value generated<strong>and</strong> distributedEC2 Financial implications of climate change Monitoring system in preparation,implementation in 2014EC3 Coverage of the organization’s defined benefitplan obligationsEC4 Financial assistance received from government In the review period, FMG received no statefinancial grants.128–130, 156123–12481, 90, 13024, 156173
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityGRI indicators Remarks Page reference StatusEC5Ratio of st<strong>and</strong>ard entry-level wage comparedto local minimum wageThe company is domiciled in Munich;98% of its workforce is under collectivebargaining contracts.EC6 Selection of locally based suppliers Flyer on purchasing <strong>and</strong> supply relationshipsavailable herepAO1 Passengers Munich Airport has a night-time curfewbetween 10:00pm <strong>and</strong> 6:00am during whichflights are limited in number <strong>and</strong> confinedto especially quiet aircraft.AO2 Aircraft movements Munich Airport has a night-time curfewbetween 10:00pm <strong>and</strong> 6:00am during whichflights are limited in number <strong>and</strong> confinedto especially quiet aircraft.AO3 Air cargo tonnage Munich Airport has a night-time curfewbetween 10:00pm <strong>and</strong> 6:00am during whichflights are limited in number <strong>and</strong> confinedto especially quiet aircraft.73, 90EC7 Hiring of local human resources 82, 164EC8 Infrastructure investments <strong>and</strong> services40–41, 69–70provided primarily for local benefitEC9 Significant indirect economic impacts 37, 70, 72–7541, 71, 73–74,www.munich-airport.com/publications47–48, 157,www.munich-airport.com/night-flightwww.munich-airport.com/statistics47–48, 157–158,www.munich-airport.com/night-flightwww.munich-airport.com/statistics48–49, 158,www.munich-airport.com/night-flightwww.munich-airport.com/statisticsEnvironmental performance indicatorsManagement approach 42–43, 94–109, 121–123, 151–153EN1 Materials used by weight or volume 164, 165EN2 Percentage of materials used that are recycled164input materialsEN3 Direct energy consumption by primary energy165sourceEN4 Indirect energy consumption by primary source 98–99, 165EN5 Energy saved due to conservation <strong>and</strong>96–97, 99,101efficiency improvementsEN6 Initiatives to provide energy-efficient or renewable40–41, 94–98, 98–101energy-based products <strong>and</strong> servicesEN7 Initiatives to reduce indirect energy consumption42–43, 94–98, 98–101<strong>and</strong> reductions achievedEN8 Total water withdrawal by source Water is sourced from the Moosrain water 102–103, 167utility company.AO4 Quality of storm water 102EN9 Water sources significantly affected by withdrawalof waterEN10 Percentage volume of water recycled <strong>and</strong>reusedWater is sourced from the Moosrain water 102All wastewater is treated by the ErdingerMoos sewage company.102–103EN11 L<strong>and</strong> in or adjacent to protected areas 37–38, 108–109, 169EN12 Impacts on biodiversity in protected areas 37–38, 60, 108–109EN13 Habitats protected or restored 37–38, 60, 108–109, 169EN14 Strategies for managing impacts on biodiversity37–38, 60, 108–109EN15 Impacts on threatened species 37–38, 60, 108–109EN16 Direct <strong>and</strong> indirect greenhouse gas emissionsby weight94–95, 165174
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programP <strong>Sustainability</strong> indicatorsP <strong>Report</strong> profileq GRI indexGRI indicators Remarks Page reference StatusEN17 Other relevant greenhouse gas emissions by165, 166weightEN18 Initiatives to reduce greenhouse gas emissions 94–101EN19 Emissions of ozone-depleting substances byweightEN20 NO x , SO x <strong>and</strong> other air emissions by type <strong>and</strong>weightEN21 Total water dischargeInformation on measuring stations, methodology,measuring data <strong>and</strong> pollutant sourcesAll wastewater is treated by the ErdingerMoos sewage company.EN22 Quantity of waste by type <strong>and</strong> disposal method 103–104, 16816698, 166,www.munich-airport.com/air102, 167EN23 Total number <strong>and</strong> volume of significant spills In the review period, no spills of hazardous 104materials were reported within the FMGGroup.AO5 Ambient air quality 98, 166–167,www.munich-airport.com/airAO6 De-icing/anti-icing agents used by type <strong>and</strong>103, 164volumeEN24 Transport of waste deemed hazardous 104, 168EN25 Impact of wastewater on biodiversityAll wastewater is treated at a processing facility102in Eitting operated by the local ErdingerMoos sewage company. Rain water drainingoff runways <strong>and</strong> taxiways is relatively clean<strong>and</strong> can therefore drain into the ground;some goes into the live topsoil, <strong>and</strong> someflows via depressions in the terrain intodraining ditches.EN26 Initiatives to mitigate environmental impacts 39, 41, 94–98, 101, 102–104, 105–107EN27 Reuse of packaging materialsEN28 Fines for non-compliance with environmentallaws <strong>and</strong> regulationsEN29 Significant environmental impacts of transportingproducts <strong>and</strong> other goods <strong>and</strong> materialsused for the organization’s operations, <strong>and</strong>transporting members of the workforceEN30 Total environmental protection expenditures<strong>and</strong> investmentsAO7 Number <strong>and</strong> percentage change of peopleresiding in areas affected by noiseMunich Airport provides a take-back service 168for retail packaging, which it sends forrecycling.No fines are known to have been imposed 96, 104for noncompliance with statutory environmentalregulations in 2011. 1Not financially quantifiable at this time165, 166, 16738–39, 105–106Labor practices <strong>and</strong> decent workManagement approach 80–89, 153–155LA1 Workforce by employment contract <strong>and</strong> region 159, 164LA2 Employee turnover by age group, gender <strong>and</strong> The turnover rate is so low that it is not 161, 164regionrelevant for security.LA3 Benefits provided to full-time employees 81, 87–89, 90LA4Employees covered by collective bargainingagreements811Flughafen München GmbH complies with statutory regulations <strong>and</strong> provisions based on the applicable legislation <strong>and</strong> legal framework.175
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityGRI indicators Remarks Page reference StatusLA5LA6LA7Minimum notice periods regarding significantoperational changesWorkforce representation in health <strong>and</strong> safetycommitteesInjuries, occupational diseases <strong>and</strong> workrelatedaccidentsAs per Germany’s Works Constitution Act 90The entire workforce is represented in health<strong>and</strong> safety committees by the works council.87–8887–88, 162LA8 Measures regarding serious diseases 54, 87–89LA9Health <strong>and</strong> safety topics covered in formalagreements with trade unionsLA10 Hours of training per employeeLA11 Programs for skills management <strong>and</strong> lifelonglearningLA12 Percentage of employees receiving regularperformance <strong>and</strong> career development reviewsLA13 Composition of governance bodies <strong>and</strong> breakdownof employees per categoryLA14 Ratio of basic salary of men to women byemployee categoryLA15 Return to work <strong>and</strong> retention rates after parentalleave, by genderMembers of the works council serve as permanentmembers on the health <strong>and</strong> safetycommittee. Several works council membersfulfill dual roles – as employee representatives<strong>and</strong> as representatives of the ver.di <strong>and</strong>GÖD labor unions.Detailed figures cannot be published for dataprivacy reasons.Early retirement rules for airport fire serviceamended in collective agreement as of 2012.As of 2011, FMG has temporarily suspendedits system of performance-related pay. Nonetheless,non-operating units continue to conductperformance <strong>and</strong> career developmentreviews. The reintroduction of performancebasedremuneration for employees will bediscussed in collective pay negotiations from2014.Ninety-eight percent of the FMG Group workforcehave collective bargaining contractsthat set the terms of their employment. Thisensures that men <strong>and</strong> women are paid thesame.87–8916183–85, 86, 8931–3286, 145, 159,160, 162, 16381160Human rightsManagement approach 56–63, 69–75, 84, 86, 90–91,see also HR6 <strong>and</strong> HR7HR1 Investment agreements <strong>and</strong> contracts thatinclude human rights clauses or that haveundergone human rights screeningThe FMG Group’s business operations areconfined to Germany <strong>and</strong> Europe. Here,human rights are enshrined in law. In callsfor tender, we make sure that national <strong>and</strong>international laws <strong>and</strong> agreements are applied.This is reaffirmed in legally binding formwhen contracts are signed.71176
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programP <strong>Sustainability</strong> indicatorsP <strong>Report</strong> profileq GRI indexGRI indicators Remarks Page reference StatusHR2Percentage of suppliers <strong>and</strong> contractors thathave undergone screening on human rightsThe FMG Group sources almost all the goods<strong>and</strong> services it purchases with local companies<strong>and</strong> suppliers in the surrounding area, allof whom are bound by strict laws on humanrights. In calls for tender, FMG makes sure thatnational <strong>and</strong> international laws <strong>and</strong> agreementsare applied. This is reaffirmed in legallybinding form when contracts are signed.HR3 Employee training on human rights Required under Germany’s General Act onEqual Treatment: information is availableon the intranet <strong>and</strong> through executiveemployees.HR4 Incidents of discrimination <strong>and</strong> actions taken There were no reported cases of discriminationduring the review period.HR5Violation of the right to exercise freedom ofassociation or collective bargainingThere were no instances of restriction of theright to freedom of association or collectivebargaining in the review period. MunichAirport actively encourages employees toengage in codetermination. Their rights areprotected by Germany’s Works ConstitutionAct <strong>and</strong> other statutes.HR6 Principles <strong>and</strong> measures to eliminate child labor The FMG Group’s compliance with statutoryregulations means that there is no risk ofincidents of child labor in connection withthe Group’s business activities. When hiringemployees, for example, the Group complieswith the minimum age requirements set bynational statutes. When sourcing productgroups where the likelihood of child laboris high, we take steps to ensure that none isinvolved. Manufacturers of high-risk productsin areas known to use child labor arerequired to present independent certificationthat they do not.HR7Principles <strong>and</strong> measures to eliminate forcedlaborThe FMG Group rejects all forms of forcedlabor. Due to the nature of the Group’s businessoperations <strong>and</strong> the fact that workingconditions in Germany are subject to strictlaws, this indicator is of minor relevance.During the review period, no activities wereidentified as having the risk of forced orinvoluntary labor. When signing contracts,suppliers <strong>and</strong> contractors must agree toabide by national <strong>and</strong> international laws <strong>and</strong>agreements.HR8 Security personnel training 57, 84HR9 Violations involving rights of indigenous people Not relevant84, 86869086, 7190177
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityGRI indicators Remarks Page reference StatusHR10 Operations that have been subject to humanrights reviews <strong>and</strong>/or impact assessmentsHR11 Number of grievances related to human rightsfiledBarring consulting work for other internationalairports, the FMG Group’s operationsare confined to Munich. Compliance withGermany’s constitution <strong>and</strong> the protection ofhuman rights are of paramount importancefor the Group. There were no review proceduresor impact assessments in connectionwith human rights compliance in the reviewperiod.There were no reported cases of humanrights grievances in the FMG Group duringthe review period.8686SocietyManagement approach 36–41, 66–77, 121–123, 155SO1 Percentage of operations with implemented localcommunity engagement, impact assessments,Corporate image analysis conducted in 2010:“Munich Airport as seen by its neighbors”37, 69–71, 72–75, 76,<strong>and</strong> development programsavailable herep www.munich-airport.com/publicationsAO8 Number of persons to receive compensation on39the grounds of airport expansionSO2 Business units analyzed for risks related to122–123corruptionSO3 Percentage of employees trained in anti-corruption122–123policies <strong>and</strong> proceduresSO4 Actions taken in response to incidents122of corruptionSO5 Public policy positions <strong>and</strong> lobbying Policy statements available here66,p www.munich-airport.com/publicationsSO6 Contributions to political parties <strong>and</strong> politicians Flughafen München GmbH makes no financial66contributions of any kind to political par-ties, politicians or associated organizations.SO7 Legal actions for anti-competitive behavior At the time of going to print, there were knowncases of anti-competitive, anti-trust or antimonopolyaction being brought against theGroup for the review year. 1SO8Penalties for non-compliance with laws <strong>and</strong>regulationsSO9 Operations with significant potential or actualnegative impacts on local communitiesSO10 Prevention <strong>and</strong> mitigation measuresimplementedAt the time of going to print, there were no 124known cases of fines or sanctions againstthe Group for non-compliance with laws <strong>and</strong>regulations. 136–41, 105–107,www.munich-airport.com/aircraft-noise38–39, 105–106,www.munich-airport.com/noise-protectionProduct responsibilityManagement approachRules for airport use available herep55–63, 121–123, see also PR6www.munich-airport.com/aviationwww.munich-airport.com/barrier-freePR1Health <strong>and</strong> safety impacts during product lifecycle stages53, 56–59, 62–63, 96, 103–1041Flughafen München GmbH complies with statutory, regulations <strong>and</strong> provisions based on the applicable legislation <strong>and</strong> legal framework.178
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentP <strong>Sustainability</strong> programP <strong>Sustainability</strong> indicatorsP <strong>Report</strong> profileq GRI indexGRI indicators Remarks Page reference StatusPR2AO9PR3PR4PR5PR6PR7PR8PR9Incidents of non-compliance with regulationsconcerning health <strong>and</strong> safety impactsTotal annual number of wildlife strikes per10,000 aircraft movementsType of product <strong>and</strong> service information requiredby proceduresIncidents of non-compliance with regulations<strong>and</strong> voluntary codes concerning product <strong>and</strong>service informationCustomer satisfaction including results ofsurveys measuring customer satisfactionPrograms for adherence to laws, st<strong>and</strong>ards <strong>and</strong>voluntary codes related to advertisingNon-compliance with regulations <strong>and</strong> voluntarycodes concerning marketing communicationsComplaints regarding breaches of customerprivacy <strong>and</strong> losses of customer dataFines for non-compliance with laws <strong>and</strong>regulations concerning the provision <strong>and</strong> useof products <strong>and</strong> servicesAt the time of going to print, there were no 56–57known incidents of non-compliance withregulations <strong>and</strong> voluntary codes concerningthe health <strong>and</strong> safety impacts of products<strong>and</strong> services during their life cycle. 1Rules for airport use available herepAt the time of going to print, there were noknown incidents of non-compliance withregulations <strong>and</strong> voluntary codes concerningproduct <strong>and</strong> service information <strong>and</strong>labeling. 1Flughafen München GmbH’s advertisingconforms to the rules issued by the GermanAdvertising Council. The advertising wepublish avoids all forms of discrimination <strong>and</strong>unfairness <strong>and</strong> does not mislead. In particular,our advertising follows the Council’s coderegarding advertising that involves or isaccessible to children, <strong>and</strong> it remains withinthe realm of what may be considered decent,proper <strong>and</strong> moral. At no time in the periodreviewed in this report did we incur sanctions,fines or warnings for infringements of advertisingregulations. 1At the time of going to print, there were noknown incidents of non-compliance withregulations <strong>and</strong> voluntary codes concerningmarketing communications, including advertising,promotion, <strong>and</strong> sponsorship. 1At the time of going to print, there were noknown instances of complaints regardingbreaches of customer privacy <strong>and</strong> losses ofcustomer data.At the time of going to print, there were noknown instances of fines for non-compliancewith laws <strong>and</strong> regulations concerning theprovision <strong>and</strong> use of products <strong>and</strong> services. 16056–58, 122,www.munich-airport.com/aviation42, 55–56, 63, 67–68, 72–731231Flughafen München GmbH complies with statutory regulations <strong>and</strong> provisions based on the applicable legislation <strong>and</strong> legal framework.179
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibility180
Workforce <strong>and</strong> work environment Environmental <strong>and</strong> climate protection Financial review Sustainable DevelopmentGlossaryAirport campusThe term airport campus is used to refer collectivelyto the entire airport site, including all of its buildings<strong>and</strong> facilities.Airports Council International (ACI)An international organization, headquartered in Geneva,which represents airport operators. More than1,600 airports in almost all of the world’s countriesare ACI members, including 400 airports in 46 Europeancountries.Air source technologyAir source technology uses a system of natural ventilation.With natural ventilation, fresh air enters a buildingthrough vents <strong>and</strong> openings. Interior heat sourcesdeter mine the pattern of airflow within rooms.Auxiliary power unit (APU)Today’s commercial aircraft have an auxiliary powerunit in addition to their two or four main engines. TheAPU is used to start the main engines <strong>and</strong> to generateelectric power when the plane is on the ground.BiodiversityBiodiversity refers to the variety of life forms (includinganimal species, plants, fungi <strong>and</strong> bacteria), thehabitats in which these life forms live (ecosystemssuch as woodl<strong>and</strong> or bodies of water), <strong>and</strong> the geneticdiversity within species (e.g., subspecies, strains <strong>and</strong>breeds).BiomassBiomass is biological material that is biogenic asopposed to fossil in origin. Biomass refers both toliving <strong>and</strong> naturally growing material in nature <strong>and</strong> towaste matter resulting from that material.Carbon dioxide (CO 2 )Carbon dioxide is a colorless, odorless gas that is createdwhen substances containing carbon combust(e.g., to generate heat <strong>and</strong> electricity or to power air -craft <strong>and</strong> motor vehicles). Carbon dioxide absorbspart of the heat radiation in the earth’s atmosphere.This property makes it a so-called greenhouse gas.Carbon monoxide (CO)Carbon monoxide is a colorless, odorless <strong>and</strong> flavor -less toxic gas. It is created through the partial combustionof substances containing carbon withoutsufficient oxygen present or through combustion atvery high temperatures.CargoA load carried on a means of transport, generally for afee. The term cargo is applied to air freight <strong>and</strong> mail.Cash flow from operationsCash flow is a business metric describing the newnet cash assets during an accounting period.Collaborative Decision Making (CDM)Airport CDM is an approach designed to streamlinecollaboration between all parties involved in flight<strong>and</strong> h<strong>and</strong>ling operations (airports, airlines, groundh<strong>and</strong>ling operators <strong>and</strong> air traffic control) so as to optimizeprocedures <strong>and</strong> maximize resource efficiency.Continuous Descent Approach (CDA)An approach method using reduced engine power.The aircraft approaches its destination airport in asteady descent. This helps to conserve fuel <strong>and</strong>reduce aviation noise.Decibel (dB)A unit of measure for sound intensity <strong>and</strong> sound pres -sure. One decibel (dB) is the smallest change involume that a human can register. The decibel scaleis logarithmic. Thus, a change of 10 dB represents ahalving or doubling in the perceived noise level.DeicingAircraft deicing is an operation carried out on planesbefore they depart in order to clear them of ice <strong>and</strong>snow. In winter weather conditions, crucial parts ofaircraft must be protected to prevent ice re-forming.This is accomplished by spraying them with a mixtureof water <strong>and</strong> deicing agent (glycols).181
Introduction Company profile <strong>and</strong> strategyService portfolio Communication <strong>and</strong> social responsibilityDIN EN ISO 14001A st<strong>and</strong>ard created by the International Organizationfor St<strong>and</strong>ardization (ISO). The st<strong>and</strong>ard establishes aworldwide foundation for certifiable environmentalmanagement systems.EBITEarnings before interest <strong>and</strong> taxes (<strong>and</strong> one-timecumulative effects, where applicable), commonly alsoreferred to as the operating result.EBITDAEarnings before interest, taxes, depreciation <strong>and</strong>amortization.Eco-Management <strong>and</strong> Audit Scheme (EMAS)A system for voluntary environmental management<strong>and</strong> auditing, developed by the European Union asan instrument to enable businesses to continuouslyimprove their environmental performance.EmissionThe ejection, discharge or emanation of substances,energy or radiation into the surrounding environmentby a given source. Emissions can take the form ofgaseous pollutants, noise <strong>and</strong> dust, for example.Environmental impactsThe effects on humans, animals, plants <strong>and</strong> inanimateobjects caused, say, by noise, air pollution, vibration,radiation, heat <strong>and</strong> light. Environmental legislationaims to control such impacts as effectively as possible.Equivalent continuous sound level Leq3The equivalent continuous sound level Leq3 is thebasic aviation noise metric applied in current aviationnoise legislation. It is a direct measure of the soundenergy at the point of observation <strong>and</strong> is thereforealso described as the energy equivalent continuoussound level. Leq3 is measured over 16 hours duringthe day, from 6am to 10pm (daytime Leq3), or 8 hoursduring the night, from 10pm to 6am (nighttime Leq3).The six busiest months of the year are taken as thereference baseline.German Airports Association (ADV)The ADV is the umbrella organization of commercialairports in Germany, Switzerl<strong>and</strong> <strong>and</strong> Austria. Theorganization works to promote Germany as a strong<strong>and</strong> competitive center of aviation.Global <strong>Report</strong>ing Initiative (GRI)An independent organization which publishes guidelineson sustainability reporting. Its aim is to establisha common baseline for communications <strong>and</strong> toensure the comparability of sustainability reports.) www.globalreporting.orgGreenhouse Gas Protocol (GHG Protocol)The Greenhouse Gas Protocol is a globally recognizedinstrument used to quantify <strong>and</strong> manage greenhousegas emissions. The GHG Protocol defines requirementsgoverning the calculation of greenhouse gasemissions on an organization-wide scale <strong>and</strong> theimplementation of projects to reduce GHG emissions.Hub airportAn airport used by an airline company or allianceas a point of transit between short-, medium- <strong>and</strong>long-haul services to enable the airline or airlines toconnect to a large number of destinations.IntermodalityIntermodal transportation involves the interconnectionof two or more modes of transport – rail, road, air<strong>and</strong> sea, for example – along a given transport route.International Civil Aviation Organization (ICAO)Headquartered in Montreal, the ICAO is an agencyof the United Nations. The organization has a totalof 190 contracting states. The goal of the ICAO <strong>and</strong>its members is to ensure the safe <strong>and</strong> sustainabledevelopment of civil aviation.L<strong>and</strong>ing <strong>and</strong> takeoff (LTO) cycleThe LTO cycle consists of four phases: airport approach(including l<strong>and</strong>ing), taxi-in from the runwayto the parking st<strong>and</strong>, taxi-out from the st<strong>and</strong> to therunway, <strong>and</strong> takeoff (including climb-out). The cycleencompasses altitudes up to approximately 915 meters<strong>and</strong> distances from the airport of around 8 kilometersin the case of departing aircraft, depending onhow they climb out, <strong>and</strong> 17 kilometers in the case ofarriving aircraft.182
Workforce <strong>and</strong> work environmentEnvironmental <strong>and</strong> climate protectionFinancial reviewSustainable developmentMinimum clearanceThis describes the minimum vertical or horizontalseparation in terms of time or distance required betweenany two aircraft.Nitrogen oxides (NOx)Gases that are formed when nitrogen combustsin combination with oxygen <strong>and</strong> occur in aviationexhaust gas.PM 10 particulatesPM 10 describes a category of particulate matter (i.e.,fine dust particles) with a diameter of less than 10μm.Pre-conditioned air (PCA)Air supplied by systems installed in airport rampareas to heat or cool aircraft on the ground. By usingthese systems, planes do not need to run their ownauxiliary power units (APU).Safety Management System (SMS)The name given to a program in civil aviation toimprove technical safety. Implementation of an SMSis a m<strong>and</strong>atory ICAO requirement at airports. Thepurpose of an SMS is to guard against accidents<strong>and</strong> incidents by identifying dangers, assessing <strong>and</strong>reducing risks, implementing countermeasures, <strong>and</strong>monitoring all relevant processes.SatelliteA satellite terminal is a building created to augmentan existing airport terminal building. Unlike a fullyfledged terminal, it lacks its own pick-up <strong>and</strong> drop-offareas <strong>and</strong> other typical l<strong>and</strong>side facilities found in terminals,such as ticket desks, check-in counters, <strong>and</strong>baggage claims. Instead, a satellite simply has loungeareas where passengers can wait for flights, <strong>and</strong> airbridges to enable passengers to enplane easily.Smart meteringSmart meters enable utility users to keep track of theirenergy consumption <strong>and</strong> periods of energy use. UnderGermany’s Energy Industry Act, smart metersare required in all new builds <strong>and</strong> major refurbishmentsfrom 2010. The meters are intended to helpconsumers identify <strong>and</strong> curb energy waste.StakeholdersGroups or individuals who can influence how a companyachieves its targets or who are affected by acompany’s activities. They include employees, capitalproviders, customers, suppliers, local communities,non-governmental organizations (NGOs), publicauthorities <strong>and</strong> policymakers.Sustainable developmentSustainable development was recognized at the UnitedNations Conference on Environment <strong>and</strong> Development(UNCED) in Rio de Janeiro in 1992 as a normativeinternational guiding principle of the communityof states, global industry, global civil society <strong>and</strong>policymakers, <strong>and</strong> was enshrined as a fundamentalprinciple in the Rio Declaration <strong>and</strong> Agenda 21.Type certificationType certification is the official process by whichthe airworthiness of aircraft is assessed. It is carriedout by the aviation authorities in the state in which anaircraft is registered <strong>and</strong> serves to verify compliancewith regu lating bodies’ requirements.ROCEReturn on capital employed is applied in businessmanagement as a measure of how effectively <strong>and</strong>profitably a company is utilizing its capital.Virtual serverIn computing, virtualization helps consolidate serverenvironments <strong>and</strong> maximize hardware utilization byrunning multiple virtual servers on a single hardwaredevice. This helps to significantly reduce the energyrequired to power hardware <strong>and</strong> cool data centers.Workload unit (WLU)A metric used to track commercial passenger <strong>and</strong>cargo traffic. A workload unit equates to one passengerwith carry-on luggage (100 kg in total) or 100 kg ofair cargo or mail.183
PublisherFlughafen München GmbHP.O. Box 23 17 5585326 MunichGermanywww.munich-airport.comResponsible for contentFlughafen München GmbHHans-Joachim BuesSenior Vice PresidentCorporate CommunicationsGertrud SeidenspinnerSenior Vice PresidentCorporate Development <strong>and</strong> EnvironmentContactsFlughafen München GmbHPetra RöthleinVice President Internal Communications,Print <strong>and</strong> Online MediaDr. Monica StreckHead of Strategic <strong>Sustainability</strong> ManagementE-mailsustainability@munich-airport.dePhotographsGregor Schläger (pp. 12 – 23, p. 43, p. 56)Matthias Tunger (p. 4, pp. 6 – 7)Dr. Werner HenniesAlex Tino FriedelBavarian State Survey Administration/digital orthophotograph (p. 107)Yorck Dertinger (p. 55)Florian Holzherr (p. 9)Koch+Partner Architekten und Stadtplaner (p. 41)Koch+Partner Architekten und Stadtplaner/rendered by VIZE.com (cover image 1 )Consulting <strong>and</strong> designKirchhoff Consult AG, HamburgTranslationTom RattrayPrintingG. Peschke Druckerei GmbH, MunichPaperCircle silk Premium WhiteThe paper is certified with the EU Ecolabel (FR/11/003).Editorial teamDr. Reingard SchöttlInternal Communications,Print <strong>and</strong> Online MediaClaudia BüchlmannStrategic <strong>Sustainability</strong> Management1Cover photo: The cover shows a rendered image of Terminal 2’ssatellite building. The satellite is due to open in 2015. The firm ofarchitects <strong>and</strong> master planners in charge of the satellite constructionproject is K+P Architekten und Stadtplaner GmbH, Munich.184
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