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Risks and opportunities report

Risk management system

The Executive Board of FMG and all subsidiaries and affiliated companies is responsible for the early detection and prevention of risks that jeopardize the continuity of Munich Airport and the investments. Group Management has overall responsibility for an effective risk management system and lays the essential foundation for it by communicating and defining corporate strategy and targets. It formulates specifications for the risk management process and the organizational structure of the risk management system.

The goal of the risk management system is to identify events and developments that may have a negative impact on the achievement of strategic and operational targets in good time and develop suitable countermeasures. It takes account of all aspects of entrepreneurial activity – economic as well as environmental and social.

The risk management guideline regulates the general principles of risk management in the Group as well as the tasks and responsibilities of the function holders involved in risk management. This is aligned in accordance with the internationally recognized framework model «COSO ERM» (Committee of Sponsoring Organizations of the Treadway Commission – Enterprise Risk Management).

The Risk Management Committee serves as an additional supporting management, control, and supervisory body within the risk management system. As the highest ranking risk management body, it is directly subordinate to the Executive Board and consists of the Chief Financial and Infrastructure Officer, the heads of the Aviation, Commercial Activities, and Real Estate business units, the heads of corporate divisions Legal, Compliance, Environmental Affairs and Committee Support, Corporate Development, Corporate Controlling and Investment Management, Corporate Security and Corporate Communications, as well as the head of the IT service area, and the Risk Manager. The head of Compliance is involved in the Risk Management Committee as a guest. The task of the Risk Management Committee is to analyze the risks from a Group perspective and to monitor the effectiveness of countermeasures. It provides support for developing the risk management system and for risk identification, assessment, and control. The Risk Management Committee meets quarterly and agrees the risk report, which is subsequently presented to the Executive Board and the shareholders.

The risk management process comprises the following steps. A coordination and communication platform has been established in the system to support this process.

Identification and communication of risks

All divisional managers and Chief Executive Officers of subsidiaries and shareholdings are responsible for the identification and assessment of risks. In the relevant divisions, all risk-relevant information is coordinated, administrated, documented, and passed on by the relevant risk managers. The risk manager checks the divisions’ risk reports for plausibility and compliance with the Group-wide standards for risk assessment. The role involves combining the divisions’ individual reports in a risk report, taking account of materiality for the Group, and reporting quarterly to the Executive Board and shareholders. Risks that jeopardize the Group’s existence that have been identified for the first time must also be reported to the Executive Board on an ad hoc basis.

As a basis for dealing with risks responsibly, each individual employee is involved in managing risks throughout the Company. Employees are individually responsible for eliminating risks in their area and for reporting indications of existing risks to their manager without delay.

Assessment of risks

The systematic risk assessment allows the Company to determine the extent to which individual risks jeopardize the fulfillment of Munich Airport’s corporate goals and strategies and which risks may possibly threaten its existence. The «expected loss» and «likelihood of occurrance» are presented in a two-dimensional risk matrix for this purpose. The expected loss describes the impact on profits that can be expected if the loss event occurs. The likelihood of occurrence indicates how reliably the loss event is expected to occur. In the case of events that recur over time, the Company works with the frequency with which they occur. The assessment first takes place without considering measures to limit the risk (gross risks, see the section «Risks»). Subsequently, the risks are assessed after risk-minimizing measures are initiated or implemented (net risks, see section «Risks»).

Dealing with risk

Starting from the risk analysis, appropriate countermeasures for dealing with risk are specified in line with corporate strategy and economic aspects. The strategies for managing risk include: controlling, insuring, minimizing, eliminating, and passing on. The risk managers have the task of specifying and implementing countermeasures to manage risks in the respective division affected.

Risk monitoring

The risk manager monitors the effectiveness of risk management continuously. Risks are also monitored separately by Internal Audit.

Compliance management system

Compliance covers observance with all Munich Airport-related laws, specifications, and regulations, national and international rules and standards, as well as in-house rules and guidelines. Munich Airport has established a Group-wide compliance management system, which encompasses all organizational provisions ensuring compliance with the aforementioned rules.

The Compliance department submits reports on the current status of the compliance management system to the Executive Board on a regular basis and to the Supervisory Board on an annual basis. Compliance risks are also communicated as part of the risk reporting to the Executive Board and shareholders if internal thresholds are exceeded. Regular dialog takes place between Risk Management and Compliance.

Identifying and minimizing compliance risks

The Compliance department prepares the compliance risk analysis with input from the FMG divisions and combines it with the subsidiaries’ compliance risk analyses every year.

Compliance risks are assessed in the same way as the risk management process. Once the compliance risk analysis has been carried out, the Executive Board is notified of the results in a report. The compliance risk analysis was validated in 2018 by an external consultant.

The annual Compliance report to the Supervisory Board of FMG also includes the results of the compliance risk analysis. If there is an elevated loss potential and concomitant high likelihood of occurrence despite all the countermeasures taken, a detailed description is provided in the report.

In respect of 2019, there were no elevated compliance risks after the countermeasures taken were considered.

Preventing corruption

The compliance guidelines and the guidelines covering gifts and invitations support managers and employees in ensuring legally compliant and ethical behavior at the workplace. They are published on the Intranet and are therefore available to all employees. The guidelines also reference other internal regulations with which employees must comply, for example compliance with public procurement law with regard to procurement and contracting processes, data protection, and information security. These ensure that processes and procedures are transparent and traceable, both internally and externally. In contracting and tendering procedures, Munich Airport requires bidders to submit a declaration of commitment stating that they will undertake everything necessary to preclude corruption. Compliance failures are liable to sanctions, such as exclusion from the contracting process.

The position of anti-corruption officer is exercised by the head of the Compliance department. There were no confirmed cases of corruption in the Group in 2019.

Communication and training

A key task of the Compliance department is to train and advise employees, managers, and the FMG Executive Board in compliance matters as a preventative measure to stop compliance breaches from occurring.

Group compliance regularly provides training and publishes information to ensure that all employees and managers are familiar with the guidelines and any updates or amendments to them. Every year they must provide their signature to confirm that they have read the compliance documentation.

In 2019, some 56 managers of the Munich Airport Group took part in the three-hour training module on compliance as part of the Leadership Excellence Program. In addition to the legal fundamentals and the responsibilities of managers, this also covers Munich Airport Group’s specific guidelines on compliance and the prevention of corruption. A total of 568 people have received training since the module started at the end of 2013. Participation in compliance training is documented.

The Executive Board and Supervisory Board deal with compliance issues at regular intervals.

Electronic whistleblower system

Through an electronic whistleblower system, the Business Keeper Monitoring System (BKMS®), Group employees, business partners, and customers can report behavior potentially damaging to our organization. People inside the Group and outside can also contact the Compliance department by other means of communication (telephone, e-mail, face-to-face discussions) if they wish to draw attention to compliance infringements and need advice. Tender documents inform potential bidders of the possibility of using the BKMS® should compliance infringements be suspected.

Data protection

Munich Airport has taken extensive measures to comply with the General Data Protection Regulation (GDPR), which came into effect on May 25, 2018, and with the new German Federal Data Protection Act. The Group companies have nominated data protection officers to perform consultancy and supervisory tasks in accordance with the GDPR. FMG’s data protection officer is responsible for providing advice and support for the corporate divisions and also performs the role of data protection officer in most subsidiaries. The data protection officer of FMG is assigned organizationally to the Compliance department and reports directly and independently to the Executive Board. Responsibility for compliance with data protection requirements in particular lies decentrally with the individual FMG departments or with the subsidiaries for their respective processing processes.

Following the intensive awareness campaign in 2018 involving face-to-face and online training courses, ongoing training measures for Group employees and managers in 2019 also helped to improve awareness of data privacy and data protection. Specialized, individual advice is also available in instances where people are unsure how to comply properly with personal data requirements.


Risks that could have a material influence on the business activity or on the net assets, financial position, and results of operations, as well as the reputation of Munich Airport, are explained below. In each case, the risks are shown before (overview of gross risks) and after consideration of suitable countermeasures (overview of net risks).

The risk assessment relates to the economic impact in the assessment period quoted. As at December 31, 2019, the following material gross risks were identified for Munich Airport:

Overview of gross risks

Overview of gross risks

Munich Airport has depicted the economic consequences of the spread of the coronavirus in the «Economic cycle» and «Market slump from epidemic/illness» risk categories and thus rated both risks following December 31, 2019 as «very high».

Risks resulting from force majeure



Description and analysis



Natural disasters


Persistent and intensive rainfall together with melting snow and ground saturation to the south of Munich as far as the Alps could cause flood run-off in the River Isar. A resulting breach of the Isar dams and flood protection dike in Freising could lead to the terminals being flooded.


Gradual upgrading of the Isar dams by the water authority. They have already been partially renovated. In addition, the Free State of Bavaria is planning to shift the flood protection dike further back. Munich Airport also monitors the wastewater discharge situation on a permanent basis and carries out maintenance and repair work. Countermeasures are being intensified at an operational level by means of crisis and risk management procedures at Munich Airport. Insurance to cover earthquakes, storms, hail, and flooding has been arranged.

Attack on air traffic


The risk of terrorist attacks on air traffic remains unchanged. In addition to bodily injury and property damage, this would result, at least temporarily, in a decrease in the number of aircraft movements and passengers.


To avert a terrorist attack, Group security is taking strategic, operative, as well as technical and organizational measures: provision of sufficient and well-trained personnel resources, construction measures to guarantee modern and approved security technology and infrastructure, monitoring of service quality through sustainable quality measures, and constant exchange with the responsible security authorities. Bodily injury and property damage as well as interruptions of operations are insured.

Terror at the airport


Acts of terror on the airport campus give rise to the risk of bodily injury and property damage. A further consequence of such events would be, at least temporarily, a decrease in the number of aircraft movements and passengers.


To avert a terrorist attack, Group security is taking strategic, operative, as well as technical and organizational measures: provision of sufficient and well-trained personnel resources, construction measures to guarantee modern and approved security technology and infrastructure, monitoring of service quality through sustainable quality measures, and constant exchange with the responsible security authorities. Bodily injury and property damage as well as interruptions of operations are insured.

Fulfillment of security tasks


The airline companies are responsible for security tasks in transferred areas. In these areas, airline companies fulfill the same task as airport operators, but are not subject to the same supervisory authority. For Munich Airport, there is a risk that inspections will reveal defects in transferred areas and the airport as a whole will lose its security status as a result.
Defective controls could lead to property damage and bodily injury as well as reputational damage.


At present, a subsidiary of FMG is responsible for operational security tasks in the transferred areas; its services rendered are subject to regular monitoring by FMG. Furthermore, a mutual, intensive exchange takes place with the responsible government and supervisory authorities.

Market slump from epidemics/illness


Munich Airport is an arrival, departure, and transfer location for millions of air passengers and therefore a potential source of bacteria and viruses from all over the world. Epidemic/sickness outbreaks can result in market downturns with reduced aircraft movements and passenger numbers. This is what happened with the coronavirus. The economic burden of this for Munich Airport is difficult to estimate reliably at present.


Munich Airport is subject to the Act Implementing the International Health Regulations (IGV-DG) and employs a subsidiary to fulfill the necessary functions. Similarly, the rules prescribed by the European Aviation Safety Agency (EASA) on the topic of «emergency response planning» are also fulfilled. These include the handling of operations management by the medical center and consideration of laws and regulations (e.g. the German Protection against Infection Act (Infektionsschutzgesetz (IfSG)). During the course of the EASA certification acquired in 2016, it was demonstrated that Munich Airport has an emergency response plan and complies with binding requirements. Munich Airport is audited regularly by the supervisory authorities (government of Upper Bavaria) to maintain its certification status.

Large fire


In the event of damage to or destruction of terminals or infrastructure systems caused by a large fire, property damage and bodily injury as well as long-term interruptions of operations are to be expected.


To minimize the risk of a large fire, Munich Airport takes all required preventive and defensive fire protection measures, and has its own Airport Rescue and Firefighting unit. The risk of a large fire is additionally minimized by a fire insurance policy (property and interruption of operations insurance) and public liability insurance (liability claims of third parties). After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Aviation accidents


Aviation accidents or damage to aircraft can result in bodily injury and property damage, as well as interruptions of operations and consequential damage.


To minimize the risk, Munich Airport maintains an Airport Rescue and Firefighting service, a medical service, and a counseling team. The risk of aviation accidents is minimized through liability insurance and fully comprehensive insurance. After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Market risks



Description and analysis



Loss of/adverse impact on hub


If Deutsche Lufthansa amends its strategy of operating Munich Airport as a hub, this would result in dramatic falls in the number of passengers and aircraft movements.
After Deutsche Lufthansa further expanded its offering of flights in Munich in 2019, it had planned prior to the coronavirus crisis to station two additional Airbus A 380 aircraft and one intercontinental aircraft (A 340) at Munich Airport in 2020. The hub was therefore set to be further expanded and the quality of Munich Airport as a hub enhanced. Despite the current coronavirus crisis, there has been no interruption in the cooperation between Munich Airport and Deutsche Lufthansa. However, the coronavirus crisis is inevitably leading to serious reductions in both offer (routes, frequencies, aircraft) and demand.
The risk of a short-term loss on the hub is therefore regarded by Munich Airport as very low.


Munich Airport’s collaboration with Deutsche Lufthansa is based on joint investments and long-term cooperation agreements. A Letter of Intent between the two parties was signed in this regard on December 16, 2019. The shared ambition is to extend capacities in the Terminal 2 system.

Economic cycle


As a consequence of a weak economy, the growth parameters assumed in the planning process cannot be achieved, which has a negative impact on profits.
During more significant economic crises, a collapse in loan finance markets may occur.
Increasingly protectionist political tendencies could prove a burden to global trade in general, but also to European-US trade and thus to the transatlantic aviation market. This could result in growth-inhibiting effects for Munich Airport.
Brexit is fraught with risks for economic development not just in Great Britain but in the EU also, and will continue to be monitored. A disorderly Brexit would also mean the departure of Great Britain from the European Common Aviation Area (ECAA). Due to the changes in aviation rights, this would have profound consequences for the structures in the European aviation market and could temporarily inhibit development in the aviation market.
In addition to the remarks above, the outbreak of the coronavirus is placing huge strain on the global economy. The economic burden of this for Munich Airport is difficult to estimate reliably at present.


Reducing expenses through cost monitoring, if necessary reducing staff numbers in a socially responsible manner, short-time work plus a short-term cut in the investment budget in non-critical divisions aim to mitigate the consequences of economic slowdowns.
There are revolving credit lines to ensure the Company is solvent.
Great Britain formally left the EU on January 31, 2020. An eleven-month transition period now follows to allow negotiations on the future relationships between Great Britain and the EU to take place. There will be no changes to aviation rights until the transition period ends on December 31, 2020, after which a new aviation agreement will come into force.

Operating risks



Description and analysis



IT failure


Damage to the IT system can result from fire, water ingress, and sabotage.
Constant, new technological developments and the increasing risk of cyber attacks worldwide are also leading to risks in relation to the security of IT systems and networks, as well as data security. In the area of cyber criminality, an increasing, abstract risk potential exists that requires constant observation and assessment.
Failure of IT for traffic operations can lead to interruptions in operations. This would result in financial losses and reputational damage.


Critical corporate IT systems are fully redundant with systems located in physically separate locations. Property damage and interruptions of operations are insured.
To avert a cybercrime attack at Munich Airport, central information security management is in place, which defines and monitors strategic, technical, and organizational measures to defend against cyberattacks. The awareness of cyber risks is increased through training courses for managers and employees. In addition, Munich Airport opened a center of competence to counter cyber criminality in 2019 (Information Security Hub). Here the airport’s IT specialists work together with experienced IT security companies under realistic conditions on various risk scenarios and test new methods for combating cyber criminality. In addition, Munich Airport collaborates with German air traffic control and other airports to develop other measures to ward off cyberattacks.
The risk is minimized through insurance. After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Water damage


Water damage caused by a break in the main drinking water or fire extinguishing water pipelines could lead to the failure of infrastructure systems important for air traffic.


Remotely controlled emergency shut-off equipment and additional protective devices in the pipeline connections limit the possible damage. Property damage and interruptions of operations are insured. After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Change in national and EU-wide security requirements


Munich Airport is subject to national and EU-wide aviation security requirements, encompassing the topics of airport security, air passenger and hand luggage checks, airfreight, airmail, and goods control, among others. Security requirements are adjusted continuously to the current circumstances. This can give rise to procedural and also infrastructural changes for Munich Airport. Corresponding financial burdens would then follow.


Munich Airport attempts to minimize these consequences through work in associations and on committees. Early information relating to ongoing legislative procedures ensures the timely implementation of security regulations.
Additional expenses caused by infrastructural changes are dealt with in the master agreement on charges.

Failure to pass an EU safety inspection


The EU’s aviation authorities conduct safety inspections at airports. Should it fail to comply with a safety standard and subsequently fail the follow-up audit, Munich Airport could lose its «Clean» status. The consequences would be a heightening of the safety regulations, considerable obstruction with operational processes, competitive disadvantages, and a loss of image.


Munich Airport conducts thorough and strict quality controls to manage the quality of all safety aspects at the airport.

Utilities and waste disposal facilities


The inadequate availability of substances necessary for operating activities, such as electricity, heat, cooling energy, drinking and extinguishing water, wastewater, and waste, may result in property damage and interruptions of operations.


The service and maintenance programs, network redundancies, and storage reduce the risk of gaps in supply. Property damage and interruptions of operations are insured. After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Reorganization of ground handling


The success of the reorganization of the former Ground Handling business unit could be put at risk by the following uncertainties and circumstances: sustained reductions in traffic from existing customers, ground handling losses due to the transfer of part fleets to third parties, aggressive pricing policies of competitors, and an increasing price decline at Munich Airport.


In the negotiations to extend the long-term contract with an important customer of AeroGround, a new contract was concluded at the end of 2016. As a result, associated collective restructuring agreements could be extended.
To compensate for declining ground handling volumes, talks with potential new customers are ongoing. In the event of a loss of ground handling, capacities and associated costs will fall.
Constant controlling and reporting of the renovation progress or renovation path.

Personnel procurement/recruitment


Personnel procurement is proving increasingly difficult so far in the various professional groups. This was caused, for example, by the overstretched labor market in the region, the high costs of accommodation, the increasing age of the workforce, and the high fluctuation in the area of ground handling services.
Against the backdrop of the current coronavirus crisis, the «personnel procurement/recruitment» risk has lost its significance at present.


To respond to potential risks in the area of personnel procurement/recruitment in the long term too, further measures were taken in relation to the intensification of training activities, the promotion of marketing activities at universities, and the presence at trade fairs and job fairs. In 2019, Munich Airport was awarded the distinction of «Top National Employer» in a survey conducted by the Focus Business magazine in collaboration with the online network Xing and the employer rating portal kununu. In addition, projects were implemented in 2019 to acquire affordable housing for Group employees.
After taking the countermeasures into consideration, the net risk as of December 31, 2019 is below the risk tolerance limit.



Arising from the increasing number of drones in the sky, there is a risk that drones can enter into the controlled space of Munich Airport without authorization and endanger or disrupt flight operations.
In 2017, with the regulation concerning the operation of unmanned aircraft, the Federal Government adopted tightened rules for the use of drones, including an obligation to register aircraft and a ban on operation within the controlled space of airports. In addition, the EU Commission adopted a provision on May 24, 2019 to make the increasing drone traffic safer for people on the ground and in the sky. Legal responsibility for implementing drone detection, identification, and verification was regulated at national level midway through the year. German air traffic control is responsible for this at all German passenger airports.


Although the national responsibilities and competences in relation to the detection of, and defense against, drones do not lie with the airport operator, an exchange took place between relevant stakeholders in an expert discussion initiated by FMG to determine the current status of detection and defense technology. Together with the airport associations ADV, ACI, and the German Aviation Association (BDL), Munich Airport is working on a harmonized regulation for drone traffic at national and European level. In addition, the Aviation and Group security divisions are working on a study on the topic of drone protection, with the objective of obtaining manufacturer-independent valuations of the technologies available on the market for the selection of drone detection systems.
After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Legal risks



Description and analysis



Third runway


As a result of the postponement of the decision to realize the third runway project, all previously incurred planning and land acquisition costs must be checked in respect of their recoverability and depreciated if necessary.
The consequences arising from the moratorium were already recognized in the balance sheet in 2018.
There could be a significant loss of corporate value unless capacity is expanded through the construction of the third runway. This will be influenced primarily by a stagnation or decline in the traffic volume and the associated lower revenues in the Aviation and Non-Aviation divisions.
The expansion project will have to be discussed further after the current legislative period and a decision as to the further procedure will have to be made.


The legal confirmation of the planning approval notice by the Bavarian Higher Administrative Court (BayVGH) of February 19, 2014, and in the following year by the German Federal Administrative Court, were important milestones with respect to the limitation of the legal risks for realizing the project.
Further countermeasures planned included the diversification of the product range and expansion of international business. The «LabCampus» project commenced the previous year, with which Munich Airport is planning to create a unique location for innovation and cross-sector cooperation. The expansion into the USA began in 2019 and will continue to be pursued. Despite the moratorium, Munich Airport is holding firm on its future project.

Products used for de-icing


There is a suspicion that the formates currently used for de-icing paved areas and runways accelerate the oxidation of aircraft brakes. Discussions about banning these formate de-icing products are ongoing at the SAE (Society of Automobile Engineers) international standardization committee. As an alternative, there are currently only glycol-based de-icers on the market, the use of which is not permitted at Munich Airport by the Ministry of the Environment. If they were banned, substantial sums would have to be invested in wastewater systems to comply with the requirements of water management legislation.


The German passenger airports within the ADV and BDL associations are jointly opposing the ban on formate-based de-icers. They are also aiming to influence the SAE via ACI Europe.
In discussions with the Bavarian water management authorities, ACI Europe, and the responsible SAE working group, it was shown that as little de-icer as possible is used in order to minimize the environmental impact. In addition, the products used for de-icing paved areas and runways at Munich Airport are published in the Notice to Airmen (NOTAM) and followed up.
The manufacturers of the de-icer are to be involved in the future in order to find a solution to this problem.

EU General Data Protection Regulation


In addition to the legal risks listed in the risk matrix, there are also risks in connection with the EU General Data Protection Regulation (GDPR), which came into effect in 2018. The GDPR expands the existing obligations arising from the Federal Data Protection Act (BDSG) and increases the legal, operational, and technical/organizational requirements for data protection. An infringement of these rights and obligations could incur high fines, claims for damages, reprimands, and reputational damage.
Currently, there are questions being raised at Munich Airport in connection with the use of video surveillance through the CCTV system (closed circuit television).


At Munich Airport, the project to implement the requirements of the GDPR has been successfully completed. As part of this, organizational structures and processes as well as their documentation were adjusted and awareness of data protection was heightened within the Group.
In particular, the following measures were taken as countermeasures for data protection risks arising from CCTV: role use concept, new signage indicating the video surveillance, and renegotiation of the works agreement on CCTV. The gross risk here is below the risk tolerance limit set by FMG and is therefore not represented in the risk matrix.

As is customary in the normal course of business, Munich Airport is faced with various legal disputes. These can lead, in particular, to the payment of compensation claims or, in the case of construction projects, to changes in the remuneration of services. Moreover, other legal disputes can be initiated or existing legal disputes can be expanded. Apart from matters for which provisions have already been made in the balance sheet, Munich Airport is not currently anticipating any material negative impacts for the net assets, financial position, and results of operations from other known cases at the present time.

As part of the establishment of foreign subsidiaries in the area of operation and consultancy for other airports and terminals, which took place in 2019, risks can arise from the first-time assumption of operational responsibility abroad. Airport operator projects, in particular, are subject to general economic and company-specific risks, in the same way as at the Munich location itself. To mitigate these risks, Munich Airport cooperates with local partners who have a great deal of experience in relation to the respective country-specific conditions and circumstances. Local companies were established in 2019 in order to counteract liability risks in particular. Risks can arise, in particular, with what are typically long-term airport operator projects, when it comes to assessing future aviation development and consumer behavior on the part of passengers. A potential lack of growth and/or decrease in air traffic could have a significant negative impact on the growth in earnings of the project company, which in turn would entail risks for the invested capital. Risks can likewise arise from unforeseen official interventions in the charges, tax, and tariff structure of the airports to the detriment of the airport operator.

Tax (operational) audits by the tax authorities are also considered a general risk.

The expected economic burden for the gross financial risks listed below were under the reporting limit as at December 31, 2019. Therefore they were not included in the risk reporting.

Financial risks



Description and analysis



Currency risks


Currency risks arise insofar as planned sales in foreign currencies are not balanced by any corresponding expenses or outgoings in the same currency.


Munich Airport hedges currency risks using forward exchange transactions.

Credit and reliability risks


Credit and credit rating risks primarily arise from short-term deposits as well as trade receivables.


Deposits are (generally) only made with (German) banks with deposit protection.
The management of credit risks includes the constant monitoring of debtors’ creditworthiness, overdue invoices, and stringent collections management. Dependent on the credit rating, certain services are only performed against prepayment or provision of collateral in the form of guarantees.

Interest rate risks


Interest rate risks largely arise from floating-rate financial liabilities from loans and financial liabilities to shareholders.


Interest rate risks from floating-rate financial liabilities from loans are countered by Munich Airport by hedging with interest rate payer swaps.

After considering countermeasures, the following net risks remain:

Overview of net risks

Overview of net risks


The divisions and investments identify, assess, and manage opportunities on a decentralized basis with support from Corporate Development, Corporate Controlling, and Investment Management.

The developments and events that could lead to a positive deviation from planning are outlined below. The presentation as of December 31, 2019 is based on the risk report with the difference that the horizontal axis shows the time of occurrence – that is the time until opportunities are expected to occur – and not the frequency with which they occur. Opportunities are not mentioned more than once where their influence remains constant in the period of time. In the event of a changed economic advantage, multiple mentions are made. The economic advantage takes effect in the short, medium, long or very long term, and is considered periodically.

Overview of opportunities

Overview opportunities



Description and analysis



Overcoming current geopolitical and economic crises could lead to an increase in the propensity to consume on the part of passengers from regions outside Europe above the planned level.

Economic cycle


Global economic growth above planned levels could boost revenues further.



An increase in air traffic growth above the expected level could increase revenues in all corporate divisions.

Hub development


The important partner airline, Deutsche Lufthansa, could strengthen the expansion of the hub at the Munich Airport location on the basis of a further improvement of its market position, which would lead to passenger development exceeding the plans.



Munich Airport is working on the strategy to adjust the airport’s business model more closely to the structural change resulting from digitalization. Based on this strategy, medium to very long-term growth effects could occur, which are not completely taken into consideration in the previous plans.



The off-campus business of Munich Airport (services and retail) might develop better than expected, with corresponding growth in the Company results.

Real estate


The innovative real estate concepts being implemented within the framework of LabCampus could lead to a greater demand for real estate in the long terms than assumed in the plan. This would result in an increase in revenue in this and, potentially, in other business units.

Carbon strategy


The continuing increase in efficiency in energy-saving technologies and an associated improvement in the price-performance ratio of low emissions energy generation could lead to the costs of Munich Airport’s new carbon strategy being lower than expected.

Rail access


Better than expected improvements to rail access could lead to an expansion in the passenger catchment area and consequently to increased revenue in all business units.

Overall assessment of the opportunities and risk situation

For Munich Airport as the second-largest commercial airport in Germany and one of the largest airports in Europe, it is important to actively exploit any opportunities that arise to improve its position on the market still further through constant growth. However, it is also a key objective of Munich Airport to recognize risks in good time and to counter them systematically.

Accordingly, the currently anticipated impact of possible events and developments is taken into consideration in business planning every year. The reported opportunities and risks are defined as potential deviations going beyond the forecast corporate result. Munich Airport consolidates and aggregates the risks reported by the corporate divisions and Group companies, and reports quarterly to the Executive Board and shareholders. Opportunities are identified and managed with the involvement of the corporate divisions Corporate Development as well as Corporate Controlling and Investment Management.

The spread of the coronavirus and its impact on global air traffic has altered the risk situation of Munich Airport compared with the previous year. With due regard for this current situation, the «Economic cycle» and «Market slump from epidemics/illness» risks were classified as «very high». The Executive Board expects that the economic consequences of the coronavirus will have a significant impact on the result. However, because the continued progress of the coronavirus cannot be foreseen, a final risk assessment is not possible at the present time.

No risks were foreseeable from the Group-wide risk management system or in the assessment of the Executive Board during the current forecast period, which individually or in their entirety could jeopardize the continued existence of Munich Airport.

Munich Airport points out that various known or unknown risks, uncertainties, and other factors may lead to actual events, the financial position, the business development, or the performance of the Company deviating significantly from the estimates provided here.

Munich, April 17, 2020

Jost Lammers

Andrea Gebbeken

Thomas Weyer

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