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/Flughafen München GmbH Annual Press Conference March 29, 2017 Corporate Communications
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Page 1: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

/Flughafen München GmbH Annual Press Conference

March 29, 2017

Corporate Communications

Page 2: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

/The Executive Board of Munich Airport

Corporate Communications

Dr. Michael KerklohPresident and Chief Executive Officer

Andrea Gebbeken Chief Commercial Officer

Thomas WeyerVice President and Chief OfficerFinance and Infrastructure

Page 3: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Press release

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 1/4

On May 17, 2017, Munich Airport will celebrate 25 years of operations at its new

location. At today's annual press conference, in the lead-up to the big

anniversary, the airport operating company (FMG) was able to report that Munich

Airport is in excellent shape: Group sales were up by around 9 percent in 2016 to

approximately EUR 1.4 billion, and EBITDA reached a record level of

EUR 530 million. The net profit of EUR 150 million also represents a new all-time

high.

In 2016 a total of 42.3 million passengers used Munich Airport as a starting point

or destination for their journeys or to catch connecting flights. That was an

increase of 1.3 million passengers, or 3 percent, over the 2015 result, making

2016 the seventh consecutive record year for passenger traffic. The number of

take-offs and landings increased by 4 percent to over 394,000. The strongest

gains were again seen in the airfreight segment, where the total amount of cargo

handled rose by more than 5 percent to 334,000 tons.

The increasing passenger demand partly reflects increases in the route network

served from Munich, which gained 10 new destinations in the medium and long-

haul segments in 2016. This brought the number of destinations served by direct

Munich Airport achieves record earnings of approx. EUR 150 million

Strong gains in passengers, flights and airfreight:

March 29, 2017

Page 4: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Press release

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 2/4

flights from Munich Airport to 257 cities in 73 different countries. With about

6.8 million passengers – an increase of 5 percent – the intercontinental segment

again posted the strongest gains. Continental traffic, with a total of 25.8 million

passengers in 2016, remained the strongest segment at Munich Airport. This was

a 4 percent increase over 2015. The number of airlines offering scheduled

services in Munich increased by three to 100 in 2016.

In the view of Dr. Michael Kerkloh, the President and CEO of Munich Airport, the

most important indicator is the decision by Lufthansa to station the first 15

aircraft to be delivered in its order for 25 Airbus A350 widebody jets in Munich.

These advanced, highly economical and very quiet planes open up outstanding

prospects for Munich Airport in the intercontinental segment.

Kerkloh believes that the Bavarian hub is very well positioned to face the

challenges of the future: "Just a few weeks before the 25th anniversary of the

airport's opening, Bavaria's gateway to the world is in excellent shape as it

embarks on the next quarter century. Provided we can expand Munich Airport's

capacity in the coming years to keep pace with demand, this airport can definitely

keep adding new chapters to its success story."

Page 5: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Press release

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 3/4

Summary of annual results of Munich Airport:

Please note that the 2016 financial results are still preliminary approximate

values!

FMG Group financial results

2016 2015

(€m) (IFRS) (IFRS)

Group sales 1,360 1,249

Earnings before interest, taxes depreciation and amortization (EBITDA)

530 494

Depreciation and amortization 240 214

Earnings before interest and taxes (EBIT)

290 280

Financial result

Taxes

-80

-60

-82

-55

EAT 150 143

EBITDA margin 39% 40%

Operating cash flow 525 464

Page 6: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Press release

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 4/4

Summary of annual figures of Munich Airport:

Traffic figures 2016 2015 Change

Passenger volume

Commercial traffic 42,261,309 40,981,522 3.1 %

Aircraft movements

Total 394,430 379,911 3.8 %

Cargo (in tons)

Airfreight and airmail 353,650 336,162 5.2 %

Thereof airfreight turnover 334,497 317,387 5.4 %

FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site on May

17, 1992. It is jointly owned by the Free State of Bavaria (51 percent), the Federal Republic of Germany (26 percent) and

the city of Munich (23 percent). The FMG corporate group, with its 15 subsidiaries, employs more than 9,000 people. With a

total workforce of about 35,000, employed by about 550 companies, Munich Airport is one of Bavaria’s largest workplaces.

Within just a few years of opening, Munich Airport developed into a major air transportation hub and was firmly established

as one of Europe's 10 busiest airports. Munich Airport now offers connections to more than 250 destinations all over the

world. In 2016 Bavaria’s gateway to the world has handled approximately 400,000 flights with over 42 million passengers.

Bavaria's gateway to the world became the first – and is so far the only – airport in Europe to be honored with the

prestigious title of “Five-Star Airport” by the London-based Skytrax Institute.

http://twitter.com/muc_airport (Hashtag: #MPresse)

http://www.facebook.com/flughafenmuenchen

Page 7: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 1 of 16

Aviation market in upheaval

Low-cost carriers on the rise

Statement by Dr. Michael Kerkloh, CEO of Munich

Airport, at the FMG annual press conference on

Wednesday, March 29, 2017

Ladies and gentlemen,

If you have been following the news from the aviation

industry in recent weeks and months, you will have

noticed that a lot is happening, especially in the

German market. Our annual press conference has

indeed coincided with a time of big upheavals and

decisions that will define and change the direction of

competition in the coming years. Two current

developments in particular will probably have a big

impact on the future of our industry: First, there is the

steadily progressing consolidation on the part of

airlines, currently manifested, for example, by the

cooperation between Lufthansa and Etihad the

repositioning of AirBerlin. Second, we have the

demand-driven rise in the importance of the low-cost

carriers, coupled with the convergence of the business

models of those airlines and their conventional

counterparts.

For Munich Airport, this situation gives rise to many

opportunities and a wide range of future prospects.

Page 8: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 2 of 16

Munich Airport in excellent position

Munich wins 10th "European championship"

Terminal 2 voted world's best terminal

Just a few weeks before the 25th anniversary of the

airport's opening, Bavaria's gateway to the world is in

excellent shape as it embarks on the next quarter

century. Provided we can expand Munich Airport's

capacity in the coming years to keep pace with

demand – that is, if we can build, without too much

further delay, the third runway for which we have

official approval, including a final court ruling in our

favor – this airport can definitely keep adding new

chapters to its success story.

Today our Munich Airport enjoys an excellent

worldwide reputation as an international hub that

delivers outstanding performance at unmatched

quality standards. At the World Airport Awards 2017,

announced two weeks ago by the London-based

Skytrax Institute, we were honored as Europe's best

airport for the 10th time in the past 12 years. And

what's more: For the first time ever,

Munich Airport, alongside Lufthansa, received the

award for the world's best terminal. This affirmation

from passengers, based on ratings submitted by

around 14 million travellers worldwide, confirms our

assessment that our Terminal 2 has achieved another

big boost in quality through the expansion project

Page 9: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 3 of 16

Munich's route network to expand further

Munich serves most European destinations of any airport

completed in April of last year. At this point I would like

to mention once again that our new satellite terminal,

which, like the main Terminal 2 building, we operate

jointly with Lufthansa, went into operation on time and

within budget, and since then has been running

smoothly.

The excellent national and international reputation

that our airport has earned in the past naturally gives

us momentum as we prepare for what the future

brings. One of the challenges is to keep expanding the

route network served from Munich with attractive new

services and destinations. In the European segment,

we are already number one with regard to the number

of cities served. The new summer timetable that

started last Sunday offers 173 European destinations

– a number unmatched by any other airport in

Germany or abroad.

The situation with intercontinental routes is quite

different, however. Compared with other big hubs, our

timetable has big gaps in the long-haul segment.

Lufthansa's decision to station the majority of its

A350 widebody jets now stationed at Munich Airport,

thus making long-haul routes significantly more

flexible and economical, will be an important game

changer in this regard. The conditions for continuing

along our path of successful growth could hardly be

Page 10: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 4 of 16

New passenger record of 42.3 million

Passenger traffic up by over 3%

better. That was also quite evident at Lufthansa's

annual press conference two weeks ago, which was

held for the first time in Munich – probably for good

reason.

Before continuing with that thought, however – as

always at this point – I'd like to present the key traffic

figures and business results for the past year. In 2016

a total of 42.3 million passengers used Munich Airport.

That was a new all-time high, marking the seventh

consecutive annual record for total passengers at the

Bavarian hub. As compared with 2015, passenger

traffic increased by 1.3 million, or 3.1 percent. To see

this figures in context, it helps to look at 1992, when

the new Munich Airport went into operation. In that

year, 12 million passengers took off or landed in

Munich. That means that passenger traffic has more

than tripled since the airport opened, and that it has

grown much faster than the industry as a whole.

Across all German airports, passenger traffic over the

same period – from 1992 to the present – has

increased by a factor of just 2.5, from 88 million to

224 million. That represents an average annual growth

rate of just 4 percent for the country as a whole, as

compared with 5.4 percent in Munich.

As in 2015, our airport also ranked number one among

all airports in the German-speaking countries for

Page 11: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 5 of 16

Most originating traffic in German-speaking countries

Increasing demand for travel in airport's catchment area

10 cities added to routes available from Munich

originating traffic. This term refers to all passengers

who choose Munich Airport as the starting point or

destination of their trip. It excludes only the

connecting passengers. In 2016 connecting traffic

was up slightly in Munich, while originating traffic

showed an even stronger increase.

This was due to a number of factors. First, there is the

continuing increase in the demand for travel in our

catchment area, combined with a rising population,

that we have been seeing for years. On top of that, the

increase in originating traffic reflects the increasing

appeal of Bavaria and its capital, Munich, for visitors

from all over the world. This trend is bolstered by our

marketing experts, working in close cooperation with

official tourism agencies at the federal, state and

municipal levels and other partners, to steadily

enhance Munich's attractiveness as a destination. The

rising passenger demand is also matched by the

corresponding growth in travel options available in

Munich, especially in the medium and long-haul

segments.

In 2016, airlines offered 10 more destinations than in

the previous year, bringing the total number of non-

stop destinations served from Munich to 257.

Page 12: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 6 of 16

Number of take-offs and landings to increase again in 2017

Cargo tonnage has increased six-fold since airport opened

The increase in total take-offs and landings at Munich

Airport last year was even stronger than the growth in

passenger traffic. The number of aircraft movements

was up by around 4 percent to over 394,000. That

means that our airport handled an average of 1,050

takeoffs and landings per day in 2016. The gains in

passenger numbers and aircraft movements have

continued this year. For 2017 we now expect a

passenger total of around 44 million and growth of 3

to 4 percent in take-offs and landings, which will then

easily surpass the 400,000 mark.

As in recent years, the airfreight segment again

achieved even stronger growth than our passenger

operations in 2016. The total cargo tonnage increased

by 5.4 percent to 334,000 tons. Counting airmail, we

handled over 350,000 tons of cargo, or 5.2 percent

more than in the previous year. Incidentally: A

comparison of airfreight statistics with the airport's

first year is even more impressive than for passenger

numbers. The current totals are approximately six

times as high as in 1992.

The key to this very rapid growth in the cargo tonnage

is the development of Munich Airport into an

international hub with far more long-haul connections.

This becomes apparent when we consider that the

airfreight carried on long-haul routes in 1992

Page 13: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 7 of 16

Steady increase in airfreight on long-haul routes

Group sales up 9% to €1.4 billion

Record profit of €150 million

accounted for just one quarter of the total. Today, by

contrast, four fifths of the tonnage handled at Munich

Airport is carried on intercontinental flights. In terms

of the total volume, there has been a 20-fold increase

in freight handled in the long-haul segment at our

airport since our opening year. There has also been a

shift in the relative weightings if American and Asian

routes. Most of the freight carried on intercontinental

flights 25 years ago was transported to and from

America. Today, flights on Asian routes account for

two thirds of the volume. The rapid growth in airfreight

to Asian and American destinations is certainly also a

reflection of the global success of our export-driven

Bavarian economy. For the current year we expect

growth in airfreight to continue, but probably at a

more moderate rate than in 2016.

The dynamic growth in traffic at Munich Airport was a

major factor behind our strong financial results in

2016. According to preliminary figures, Munich Airport

achieved an increase of around 9 percent in group-

wide sales in 2016 to approximately 1.4 billion euros.

As a result, EBITDA will increase to around 530 million

euros. This is the best operating result in the history of

our company. The airport will also set a new record in

2016 for earnings after taxes, which we expect to

reach 150 million euros.

Page 14: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 8 of 16

FMG and subsidiaries pay over €55 million to municipalities

Eurowings to serve 31 European destinations from Munich

Among the main beneficiaries of our strong financial

performance last year, which also exceeded our own

budget targets, will be Munich Airport's neighbors.

Thanks to those excellent results, the neighboring

municipalities can look forward to 35 million euros in

business tax payments from the airport. In that

context I would like to mention that the public coffers

naturally benefit as well, and quite substantially, from

the income tax paid on behalf of the airport

employees. The airport operating company, with its

subsidiaries, transferred a total of 55 million euros in

payroll income taxes in 2016. And if you consider that

the FMG Group makes up only one quarter of the

35,000-strong workforce on the airport campus, it is

obvious that the total income taxes will actually be

much, much higher.

Ladies and gentlemen,

In these first few days of our new summer timetable,

quite a number of inaugural flights are scheduled here

at Munich Airport. Eurowings has stationed four Airbus

A320 jets at our airport to offer services from Munich

to 31 European destinations. As a Lufthansa

subsidiary, Eurowings will operate from Terminal 2. As

Page 15: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 9 of 16

Low fares and excellent quality

Munich Airport maintains five-star status

a result, the biggest low-cost carrier in the German-

speaking countries will welcome its passengers in the

world's best terminal. I am firmly convinced that the

combination of low fares and excellent quality will

prove to be a real recipe for success.

At this point, allow me to make a few general remarks

on what is known as low-cost traffic. We have always

emphasized Munich Airport's premium identity as a

European hub when it comes to service and the

passenger experience – and it's going to stay that

way. The recent awards and the fact that we

successfully defended our status as Europe's only

five-star airport in the audit conducted last week by

the London-based Skytrax Institute are convincing

proof that we are living up to our quality claims.

But that does not mean that we don't want to see low-

cost traffic at Munich Airport. On the contrary: In

terms of total traffic, this segment is significantly

underrepresented here in comparison with other

German and European airports. We want to close that

gap so that the travelling public will find the choice

they are looking for in the low-cost segment, too. After

all, there is no reason why Munich passengers should

pay more to fly than people elsewhere in Germany.

Page 16: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 10 of 16

Low-cost segment accounts for 7% of Munich passengers

Low-cost quota significantly higher at other airports

Airlines to close supply gap

With the arrival of Eurowings, the share of low-cost

traffic in Munich in terms of total passengers will be

around 7 percent. By comparison: In Germany as a

whole, about 24 percent of all passengers fly with

budget airlines. At some locations, the quota is much

higher. In Düsseldorf, with the new summer timetable,

the low-cost passengers make up 30 percent of the

total. In Hamburg it's 43 percent and in Cologne it's a

very substantial 63 percent. As the hub of a global

airline alliance, we naturally cannot reach levels like

those – nor do we want to. A more realistic benchmark

for us is Amsterdam, which is comparable to Munich

Airport in many respects, and has a low-cost share of

22 percent.

So it's obvious that we do have a lot of ground to make

up in the low-cost segment. I expect that the airlines

will close this supply shortfall in the coming years. As a

quality airport, we aim to meet the mobility needs of

every segment of the flying public. It is therefore in our

interests to open the airport to budget carriers in line

with demand. The possibilities are limited, however, by

the tight supply of slots. These are needed by airlines

to take off and land, but above all to schedule the

turnaround of their aircraft in a way that enables them

to earn a profit.

Page 17: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 11 of 16

Synergies between Lufthansa and Eurowings

Growth prospects for Eurowings at Munich Airport

Continuing development of hub

Against this backdrop we are of course very pleased

that Eurowings has established a base at our airport.

As part of the Lufthansa Group, with which we – as you

are probably aware – have enjoyed a close and

successful partnership for many years, this airline is

an excellent fit for us. Eurowings combines key

elements of the low-cost business model with the

high quality standards of its parent company. It will

also benefit greatly from the synergies offered by

Munich Airport as a time-tested Lufthansa hub. This

summer Eurowings will already be serving 31

European destinations from Munich. I am very

confident that this is just the beginning, and that we

will see many more Eurowings routes and aircraft at

our airport in the coming years. Incidentally, at a press

event this evening in the Munich city center, Eurowings

CEO Karl Ulrich Garnadt will be presenting the plans

and outlook of Munich Airport's new low-cost airline.

Ladies and gentlemen,

The example of Eurowings underscores our airport's

increasing role in Lufthansa's strategic planning. That

applies in the low-cost segment, but even more so

with regard to the ongoing development of our hub.

Page 18: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 12 of 16

Decision to station 15 Airbus A350s is important signal for Munich location

Airbus A350 cuts fuel consumption by 25%

As I mentioned at the beginning, the decision by

Lufthansa to station the first 15 aircraft to be

delivered in its order for 25 Airbus A350 jets at our

airport is a very important signal for Munich. At

Europe's best airport, passengers now pass through

the world's best terminal to directly board the most

modern long-haul aircraft currently flying. That, if you

will, is a triple threat in terms of quality, executed in

close cooperation with our system partner Lufthansa,

to provide passengers with an outstanding end-to-

end travel experience.

For Lufthansa the new widebody jets will boost the

economic efficiency of its Munich hub operations. The

state-of-the-art two-engine jet will reduce fuel

consumption by 25 percent as compared with the

four-engine Airbus A340. That means that many

routes that would not have been economically viable

with the long-haul aircraft used in the past can be

served profitably from Munich in the future. The fact

that Lufthansa CEO Carsten Spohr, speaking at the

Lufthansa annual press conference at Munich Airport,

clearly stated that the Munich hub will become more

important in the future is primarily the result of the

gains in flexibility and efficiency in the Munich long-

haul fleet.

Page 19: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 13 of 16

Modern long-haul jets boost efficiency and flexibility

New aircraft generation with lower noise and emission levels

But it's not only our airport, Lufthansa and our

passengers who will profit. The new aircraft will also

benefit our neighbors. Along with the 25 percent fuel

savings, and the corresponding reduction in

emissions, the Airbus A350 also brings significant

improvements with regard to noise: Compared to an

Airbus A340, the new planes have a 50 percent smaller

noise contour. That means that, with the switchover to

the Airbus A350, the total area on the ground

impacted by noise will be cut in half. Incidentally: Along

with the new Airbus A350, airlines operating in Munich

have also begun using other models from the latest

aircraft generation with significantly lower noise and

emission levels: the Airbus 320neo, the Boeing 787

Dreamliner and the new C Series by Bombardier.

The trend towards ever-quieter planes will continue in

the coming years. At Munich Airport we welcome this

development and are doing all we can to support it. In

that context I'd like to remind you that, as the airport

operating company, we have pursued a very ambitious

environmental and climate protection program for

many years. When planning the new satellite we were

committed to optimizing energy use and minimizing

emissions right from the drawing board, and pushed

the CO2 emissions 40 percent below those of the

existing buildings with the installation of a "climate

Page 20: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 14 of 16

CO2 emissions reduced in 2016

Munich Airport to achieve climate-neutral operations by 2030

Munich Airport celebrates 25th birthday

facade", among other measures. Highlighting the

effectiveness of our efforts is the fact that our 2016

environmental reporting actually shows a slight

reduction in CO2 emissions within our scope of

operations despite having opened a new building in

April with annual handling capacity for 11 million

passengers.

Last fall we again substantially raised our targets with

regard to the CO2 emissions. Munich Airport became

the first airport in Germany to pass a resolution to

achieve climate-neutral operations by 2030. To

achieve that target, we will reduce our CO2 emissions

by 60 percent based on current levels. The remaining

40 percent will be offset by compensation measures,

with the focus on regional projects. An indicator of the

importance we attach to climate-neutral airport

operations is the volume of investments we plan to

make. At the end of last year our governing bodies

decided that we can commit 150 million euros to the

implementation of our climate strategy. That is

equivalent to our entire annual profits for 2016.

In seven weeks we will celebrate Munich Airport's 25th

birthday. Dismissed before and immediately after the

official opening as an example of Bavarian delusions

of grandeur, the new Munich Airport was firmly

established within just a few years as the most

Page 21: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 15 of 16

Munich Airport boosts dynamic economic growth in Bavaria

Capacity crunch blocks development in line with demand

More than 200 companies and associations back airport expansion

successful infrastructure project in the state's post-

war history. As a bridgehead to key markets and urban

centers in Europe, America, Asia and Africa, as

Bavaria's biggest workplace, now with 35,000

employees, and as a prestigious "calling" card for our

state, this airport has played an essential role in the

dynamic economic development we have experienced

here over the past two and a half decades.

Whether our airport is able to continue playing a

comparable role as an engine for value creation,

economic growth and employment in the medium to

long term will depend on pivotal decisions made by

politicians. As the airport operating company, we can

only continue pointing out that the bottlenecks caused

by the existing two-runway system are already holding

up the development of routes and services in Munich

in line with demand. Under these circumstances, the

little remaining room for growth will soon be almost

fully used up. For the airport to have further growth

prospects, a third runway is needed. The fact that well

over 200 companies and associations have spoken out

publicly for the realization of this expansion project –

including many DAX corporations as well as export-

focused mid-sized Bavarian companies and many

long-established smaller firms – shows that the

Page 22: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Page 16 of 16

Airport plans big events to mark 25th anniversary

importance of this infrastructure measure for

Bavaria's competitiveness is clearly understood.

To mark the anniversary of the airport's opening, an

extensive program of events is planned on and around

May 17th. This includes a big celebration on the airport

campus for the entire airport staff, a neighbors' night

for our partners in the region, a music festival with

exciting live acts, and two spectacular family days,

with 25,000 guests welcomed on each day for an up-

close look at the airport. In short, we're going to

celebrate our birthday in style, and all of the airport's

friends, supporters and neighbors are cordially invited

to join us – because there's one thing we can say

about Munich Airport's first quarter century: it's a real

cause for celebration!

Thank you.

Page 23: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

2014–2016: Commercial passengers

39,7

41.0

42,3

2014 2015 201638

38,5

39

39,5

40

40,5

41

41,5

42

42,5

(in millions)

2.7% 3.2% 3.1%

Munich Airport, Corporate Communication March 29, 2017

Page 24: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

2014–2016: Aircraft movements

376.678 379.911394.430

2014 2015 2016250.000

300.000

350.000

400.000

450.000

-1.4% 0.9% 3.8%

Munich Airport, Corporate Communication March 29, 2017

Take-offs and landings

Page 25: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

2014–2016: Commercial airfreight

291.475

317,387

334,497

2014 2015 2016260.000

270.000

280.000

290.000

300.000

310.000

320.000

330.000

340.000

(tons)

8.0% 8.9% 5.4%

Munich Airport, Corporate Communication March 29, 2017

Page 26: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Financial results 2016

Consolidated revenues: approx. EUR 1.4 billion

EBITDA: EUR 530 million

Consolidated profit (EAT): EUR 150 million

Munich Airport, Corporate Communication March 29, 2017

Page 27: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Munich Airport. Aviation, Traffic Development and Strategy Page 1 of 3

Munich Airport in Statistics Air Traffic Results in the year 2016

2016 2016/2015

Aircraft movements

Scheduled / Charter Traffic 374,057 +3.9%

General Aviation (commercial) 11,024 +6.6%

Total Commercial Traffic 385,081 +4.0%

General Aviation (non-commercial) 9,349 -2.2%

Total 394,430 +3.8%

Passengers

Scheduled / Charter Traffic 42,241,902 +3.1%

Other Commercial Traffic 19,407 -3.4%

Total of Commercial Traffic 42,261,309 +3.1%

Non-commercial Traffic 16,383 -3.8%

Total 42,277,692 +3.1%

Cargo* 353,650 +5.2%

*=Ferried Air Freigt and Air Mail

Page 28: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Munich Airport. Aviation, Traffic Development and Strategy Page 2 of 3

Airlines in the year 2016 2015

Scheduled- / Charter-Traffic 100 97

Destinations in regular* traffic in the year 2016

Domestic 17 16European Union 131 129Europe Non-E.U. 32 33Africa 19 16Asia 26 26America 32 27

Total 257 247

Countries in regular* traffic in the year 2016

European Union 25 26Europe Non-E.U. 13 14Africa 9 6Asia 16 15America 10 9

Total 73 70

* = Scheduled-traffic and IT-Charter - passenger-services only

Page 29: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Munich Airport, Aviation, Traffic Development and Strategy Page 3 of 3

Peak days in the year 2016 2015Commercial traffic

Arrivals and Take-offs Friday, 16 September 2016 1,270 1,209

Passengers Friday, 30 September 2016 162,573 147,802

Cargo Turnover Friday, 16 December 2016 1,344 t 1,217 t

Peak month in the year 2016Commercial traffic

Aircraft movements September October

35,935 33,779

Average value per day 1,198 1,090

Passengers September August

4,195,434 3,957,207

Average value per day 139,848 127,652

Cargo Turnover October October

32,963 t 30,489 t

Average value per day 1,063 t 984 t

Average value per day in the year 2016Commercial traffic

Aircraft movements 1,052 1,015

Passengers 115,468 112,278

Cargo Turnover 966 t 921 t

Page 30: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site
Page 31: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 1/1

Munich Airport remains on course for strong growth. In 2016 the number of aircraft movements increased by around 4 percent. The total of 394,430 take-offs and landings represented an increase of 14,500. This growth trend is set to continue in 2017.

Date of photo: 27.02.2017

Archive number: _ATF8561

Photo: Alex Tino Friedel

Copyright: Munich Airport, Corporate Communications

Munich Airport still flying high

March 29, 2017

Page 32: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site
Page 33: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 1/1

The total of 42.3 million passengers using Munich Airport last year was a new all-time record. It represented a gain of around 3 percent, or 1.3 million passengers, over 2015. The fastest-growing segment, with a 5.5 percent increase, was intercontinental travel. Demand was particularly strong for the long-haul routes to Asia, where passenger numbers rose by more than 5 percent as compared with 2015. In 2016, direct routes from Munich to both Asia and North America carried more than 3 million passengers (3.3 million and 3.2 million, respectively).

Date of photo: 02.02.2016

Archive number: SG-20160202-0566

Photo: Stephan Görlich

Copyright: Munich Airport, Corporate Communications

New passenger record at Munich Airport

March 29, 2017

Page 34: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site
Page 35: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 1/2

Since opening on April 22, 2016, the new satellite terminal has handled more than 8 million passengers. With the expansion of Terminal 2 – recently honored as the world's best terminal by the London-based Skytrax Institute – Munich Airport and Lufthansa have taken a further step with their successful joint venture. Germany's first midfield terminal has no direct landside transportation links. Check-in takes place in Terminal 2. Passengers then undergo passport screening and hand baggage checks before boarding the airport's own underground transport system that whisks them to the satellite terminal in barely a minute. With the new

Date of photo: 08.08.16

Archive number: MFZ_0775

Photo: Michael Fritz

Copyright: Munich Airport, Corporate Communications

T2 satellite terminal off to a flying start

March 29, 2017

Page 36: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption March 29, 2017

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 2/2

satellite facility, the capacity of Terminal 2, which is used by Lufthansa and its partner airlines, will be increased by 11 million to 36 million passengers per year.

Page 37: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site
Page 38: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 1/2

The central marketplace around the apron tower, bathed in natural light, is the beating heart of the new Terminal 2 satellite facility, which opened in 2016. As one of the world's most advanced airport buildings, Munich Airport's latest expansion project offers an outstanding passenger experience, with a wide variety of shopping and dining options covering 7,000 square meters of floor space. This was a major factor behind the choice of Terminal 2 as the world's best terminal for the first time by the London-based Skytrax Institute in this year's World Airport Awards. Among the highlights of the satellite are the two tower bars:

Date of photo: 24.01.2017

Archive number: Satelit_YD_17_055_1

Photo: Yorck Dertinger

Copyright: Munich Airport, Corporate Communications

Shopping and dining in the satellite terminal

March 29, 2017

Page 39: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption March 29, 2017

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 2/2

Passengers enjoying a pre-departure drink at Lenbachs or the Bubbles Bar have a spectacular view of the taxiing aircraft on the airport's eastern apron.

Page 40: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site
Page 41: Flughafen München GmbH Annual Press Conference · 2017. 3. 29. · FMG (Flughafen München GmbH), incorporated in 1949, operates Munich Airport, which opened at its present site

Photo caption

Munich Airport | Flughafen München GmbH | P.O. Box 23 17 55 | 85326 Munich-Airport | Germany Telephone: +49 89 975 411 80 | Fax: +49 89 975 410 06 | [email protected] | www.munich-airport.com Chairman of the Supervisory Board: Minister of State Dr. Markus Söder President and Chief Executive Officer: Dr. Michael Kerkloh Vice President and Chief Financial Officer (Chief Infrastructure Officer): Thomas Weyer Chief Commercial Officer: Andrea Gebbeken Page 1/1

Munich Airport will become Germany's first airport to achieve carbon-neutral operations. A resolution to adopt that goal was passed by FMG, the airport's operating company, at the end of 2016. By 2030 the total CO2 emissions directly attributable to airport operations will be cut by 60 percent. The remaining 40 percent will be offset through appropriate compensation projects, to be selected whenever possible at the regional level. FMG will invest a total of 150 million euros in climate protection programs between now and 2030.

Date of photo: 09.05.2016

Archive number: MUC Aerial View

Photo: Dr. Werner Hennies

Copyright: Munich Airport, Corporate Communications

Munich Airport en route to climate-neutral operations

March 29, 2017


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