Notes to the Segment Reporting

42. Notes to the Segment Reporting

Segment reporting in the Fraport Group according to IFRS 8 is based on internal reporting to the Executive Board as principle decision-maker and is attached as an appendix to the notes.

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

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

The Aviation segment incorporates the strategic business unit “Aviation” as well as the Group companies involved in the processes at the Frankfurt site.

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

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

The International Activities & Services segment encompasses in aggregate, due to the similarity of the economic criteria, the Group companies that are not integrated in the processes at the Frankfurt site, and Group companies that carry out their business operations outside the Frankfurt site (International Activities). The business operations of these companies consist of the operation of airports outside the Frankfurt site or the provision of airport-related services, and are primarily aimed at the users of airport infrastructure. In subareas, they are subject to country-specific regulatory requirements for the operation of airport infrastructure. In addition, the internal service units Integrated Facility Management, Corporate Infrastructure Management, Airport Expansion South, Information and Telecommunication and their Group companies and the strategic business unit Global Investments and Management are assigned to the segment because they primarily provide internal services for the Fraport Group.

Revenue of €64.3million, EBITDA of €22.2million and EBIT of -€7.2 million result from the internal service units and their investments as well as the acquisitions and investments section.

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

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

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

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

Goodwill from business mergers and the appropriate impairment losses, where applicable, have been allocated clearly to a segment according to this segment structure.

The reconciliation of segment assets/segment liabilities column includes the income tax assets/liabilities (including the deferred tax assets/liabilities) of the Group.

In the additional disclosures “Geographical Information”, allocation takes place according to the current main areas of operation: Germany, Rest of Europe, Asia, and America. The figures shown under “Asia” relate mainly to Türkiye. The figures shown under “America” relate mainly to the United States, Peru, and Brazil. The two Brazilian companies achieved revenue in the amount of €90.0million in 2022 (previous year: €68.3million). The investments in airport operating projects according to IFRIC 12 increased from €551.6million in the previous year to €595.9million as at December 31, 2022. The revenue of Lima Airport Partners S.R.L., Lima, Peru, amounted to €590.1million in 2022 (previous year: €345.2million). The company holds non-current intangible assets in connection with the accounting pursuant to IFRIC 12 of around €1,094.9million as at the balance sheet date (previous year: €726.7million). In the “Rest of Europe” region, the two Greek companies contributed a total of €443.8million (previous year: €255.4million) to revenue (see also note 2). The investments in airport operating projects according to IFRIC 12 amounted to €1,933.0million as at December 31, 2022 (previous year: €1,986.7million).

The additions to the joint ventures relate to FraAlliance GmbH (Segment Aviation) and PEG Europa Real Estate GmbH (Segment Retail & Real Estate). The disposal of the associated companies relates to the sale of all shares in Xi’an Xianyang International Airport Co., Ltd. (Xi’an) (Segment International Activities & Services). Furthermore, the sale of capital shares in D-Port Logistik GmbH (Segment Retail & Real Estate) took place in the 2022 fiscal year. The effects of the additions and disposal are explained in more detail in note 2. The aforementioned changes had no substantial impact on the segment reporting.

Segment assets of the Retail & Real Estate segment include real estate inventories of €0.5 million (previous year: €0.5million).

During the 2022 fiscal year, revenue of €740.8million was generated in all four segments with one customer (previous year: €467.8million). Further explanations about segment reporting can be found in the management report.