Fraport : Confirmed Financial Statements as of December 31, 2023

Annual Financial Statements 2023

Fraport AG ﴾compliant to HGB﴿

Fraport AG Frankfurt Airport Services Worldwide

Contents

The combined management report for fiscal year 2023 can be found in the 2023 annual report at www.fraport.com/publikationen.

Fraport AG Annual Financial Statements for the Fiscal Year 2023

Income Statement

Income Statement

EBITDA: EBIT + depreciation and amortization of intangible assets and property, plant, and equipment

Financial Position

Assets

Liabilities and equity

Notes to the Annual Financial Statements 2023

General Information and Explanations to the Annual Financial Statements

1 Basis for the preparation of the annual financial statements

The annual financial statements as at December 31, 2023 of Fraport AG Frankfurt Airport Services Worldwide (Fraport AG), with its registered office in Frankfurt am Main, entered in the Commercial Register of the Frankfurt am Main District Court under HRB 7042, have been prepared in accordance with the provisions of the German Commercial Code (HGB) and the German Stock Corporation Act (AktG). The total cost method continues to be used for the income statement.

As the parent company, Fraport AG prepares the consolidated financial statements for the largest and the smallest body of undertakings simultaneously. As in the previous year, the management report of Fraport AG was combined with the management report of the Fraport Group pursuant to Section 315 (3) HGB in conjunction with Section 298 (2) HGB.

2 Balance sheet date

The reporting date of Fraport AG is December 31, 2023.

3 Currency translation

Assets and liabilities in foreign currencies with a remaining term of more than one year are recognized at the exchange rate on the transaction date or the exchange rate on the balance sheet date if it is lower or, in the case of liabilities, if it is higher.

Assets and liabilities in foreign currencies with a remaining term of one year or less are valued at the mean spot exchange rate on the balance sheet date in accordance with Section 256a of the German Commercial Code (HGB), and unrealized gains are thus also recognized in the income statement.

4 Accounting and valuation principles

The accounting and valuation methods applied in the annual financial statements of Fraport AG are presented below. Compared with the previous year, the accounting and valuation methods were generally applied unchanged.

Intangible assets and property, plant, and equipment

Intangible assets and property, plant, and equipment are measured at acquisition or production cost less regular and, if applicable, extraordinary depreciation and amortization based on use. The prepayments made are recognized at the nominal value.

The scope of acquisition costs corresponds to Section 255 (1) HGB. Production costs in accordance with Section 255 (2), (2a) and (3) HGB include direct costs for materials and production, appropriate overheads and appropriate portions of the loss in value of non-current assets, insofar as this is caused by production, as well as interest on borrowings.

Fraport AG has exercised the option in accordance with Section 255 (3) HGB and capitalizes interest on borrowings used to finance the production of an asset to the extent that it is attributable to the period of production. The recognition criteria were determined in accordance with International Accounting Standards (IAS 23 Borrowing Costs). Interest rates of between 1.19% and 5.17% (previous year: between 0.63% and 1.61%) were used to determine the interest on borrowings eligible for capitaliza- tion, depending on the respective project financing.

In the fiscal year, interest was capitalized in the amount of €40.7 million (previous year: €25.1 million). This mainly relat ed to construction projects reported under the item "Prepayments made and construction in progress".

Fraport AG has exercised the option in accordance with Section 248 (2) sentence 1 HGB and capitalizes internally generated intangible assets and reports them separately. These are related exclusively to software.

Internal engineering, planning and construction management services as well as purchasing services and services of commercial project managers, which are incurred in the context of the construction of buildings and facilities, are recognized and capitalized

If securities are acquired at a premium or discount, the pro rata premium or discount attributable to the respective period is recorded as a reduction in the acquisition cost or as an additional acquisition cost.

Inventories

Inventories are measured at acquisition cost. The acquisition costs for raw materials and supplies are determined at average cost.

If necessary, depreciations are made to the lower fair value in accordance with Section 253 (4) sentence 2 HGB. Inventory risks from excessive storage periods are taken into account through devaluations. If a devaluation made in previous periods is no longer necessary, write-ups are recognized up to the acquisition cost.

Receivables, other assets, cash on hand and bank balances

Receivables, other assets and cash and cash equivalents are recognized at the lower of nominal value or fair value. Individual risks that can be identified are recognized by way of valuation allowances.

Furthermore, lump-sum valuation allowances are recognized for trade receivables using fixed devaluation rates. The calculation is made on the basis of past experience within the framework of an age structure analysis as well as by forming portfolios of customer groups with similar default risk characteristics.

A reinsurance policy (cover assets) was taken out to protect the pension provisions for active and inactive members of the Executive Board against insolvency. Measurement is based on fair value. As at the reporting date, these are offset against the corresponding pension provisions. If the asset value exceeds the pension obligation, the excess amount is reported separately under the item "Assets arising from the overfunding of obligations".

Securities in current assets

Securities in current assets are measured at the lower of the acquisition cost or fair value.

The issued capital is recognized at nominal value.

Grants received are recorded as special items for investment grants in non-currentassets and are appropriated pro rata on a straight-line basis in accordance with the depreciation amounts of the granted assets.

Provisions for pensions and similar obligations

The provisions for pensions and similar obligations were determined in accordance with Section 253 (1) and (2) sentence 2 HGB using the projected unit credit method and an interest rate of 1.83% (previous year: 1.78%). The interest rate was determined in accordance with the German Regulation on the Discounting of Provisions (RückAbzinsV - Rückstellungsabzinsungsverordnung) using a 10-year average interest rate with a term of 15 years. The difference between the measurement of pension provisions at the 10-year average interest rate and the 7-year average interest rate in accordance with Section 253 (6) sentence 1 HGB amounted to €0.5 million in the current fiscal year (previous year: €2.3 million). A pension increase of 2.25% p.a. was assumed (previous year: 2.25% p.a.). For former members of the Executive Board and their surviving dependents, whose contract includes an annual adjustment to the consumer price index, a one-time pension increase of 2% was taken into account for 2024 in line with the consumer price index (previous year: one-time pension increase of 10% for 2023). The 2018G guideline tables by Prof. Klaus Heubeck were used for the mortality rate. The projected unit credit method used is in accordance with IAS 19 (International Accounting Standards). As in the previous year, the calculations did not include salary increases and fluctuations for the active members of the Executive Board. The retirement pension for former members of the Executive Board is as agreed in their employment contract in each case. It is either measured in accordance with the Act on Adjustments to Compensation and Retirement in Hesse (Hessisches Besoldungs- und Versorgungsanpassungsgesetz), as amended, or is adjusted effective January 1 of each year at discretion, taking into account the interests of the former Executive Board member concerned and the company's economic situation. The adjustment obligation is considered to be satisfied if the adjustment does not fall below the increase in the price index for the cost of living for all households in Germany. For Executive Board members appointed from 2012 onwards, the regulation stipulated in the benefit agreement applies, whereby the retirement pension increases by 1% on January 1 of each year.

Provisions for taxes

Provisions for taxes are created in the amount of the settlement amount for corporation and trade tax not yet assessed as well as foreign taxes and for risks from external tax audits. The provision for interest from expected back tax payments is reported under other provisions.

Other provisions

Other provisions include identifiable risks and uncertain obligations. They are recognized at the settlement amount that, according to reasonable business evaluation, is necessary to cover identifiable risks and uncertain obligations. Provisions with a remaining term of more than one year are discounted in accordance with Section 253 (2) HGB. Discounting is based on the interest rates with matching maturities of between 0.94% and 1.80% (previous year: between 0.43% and 1.54%) announced by the Deutsche Bundesbank in the fiscal year.

Provisions for partial retirement and anniversary bonuses are determined using actuarial methods in accordance with Section 253

1. and (2) HGB. Partial retirement is discounted at 0.99% and 1.04% respectively (previous year: 0.42%, 0.51% and 0.58% respectively) and anniversary bonuses at 1.75% (previous year: 1.44%). A salary trend of 2.5% to 11.2% (previous year: 3.2% to 6.5%) was assumed for the measurement of the partial retirement provision. The provision for partial retirement included benefi- ciaries who were settled in the current fiscal year and current beneficiaries. Top-up amounts are reported under personnel expenses.

The value of the provisions for obligations in connection with collective bargaining agreements on working time accounts is generally determined by the fair value of the securities invested for employees and assigned for the purpose of administration in trust for insolvency protection. The provisions for working time accounts are calculated using actuarial methods in accordance with Section 253 (1) and (2) HGB. Discounting is based on an interest rate of 1.75% (previous year: 1.44%).

Liabilities

Liabilities are recognized at the settlement amount. Prepayments received are recognized at their nominal amount. In the case of installment purchases, the settlement amount corresponds to the present value of the installments still to be paid. Discounting is based on the interest rates with matching maturities of between 1.19% and 3.92% (previous year: 3.45% and 3.92%) announced by the Deutsche Bundesbank in the fiscal year.

If the repayment amount of a liability is higher than the issue amount, the difference is capitalized and depreciated on a straight- line basis over the term of the liabilities.

Derivative financial instruments

Derivative financial instruments are used exclusively to hedge existing and future interest rate and currency risks and to cover electricity requirements (forward transactions). If payments were made or received at the time of acquisition, the hedging transactions are accounted for as other assets or other liabilities. As far as possible, valuation units are formed in accordance with Section 254 HGB, i.e. the underlying transaction and hedging transaction are considered together. Changes in the market value of derivatives designated in valuation units are not taken into account ("net hedge presentation method"). Derivative financial instruments for which no valuation units can be formed with an underlying transaction or no underlying transactions exist are valued individually and negative changes in market value are recognized in the income statement in the form of provisions for impending losses. Gains from positive market values are not realized.

Derivative financial instruments used to hedge interest rate and currency risks are measured using the discounted cash flow method. For the valuation units formed, prospective effectiveness is ensured on the basis of the critical terms of the respective transactions. Critical terms are defined as:

• Nominal value
• Currency
• Remaining term
• Interest rate adjustment dates
• Interest and, if applicable, capital payment dates
• Reference interest rate for variable cash flows.

Furthermore, a sensitivity analysis is carried out for each valuation unit formed to ensure prospective effectiveness.

Retrospective effectiveness is measured at regular intervals using the dollar offset method. If ineffectiveness exists, it is recognized in the income statement.

Accruals and deferrals

Prepaid expenses include expenses before the reporting date to the extent that they represent expenses for a certain time after that date. Deferred income is income received before the reporting date that represents income for a period after that date.

Deferred taxes

Deferred taxes are recognized on the differences between the carrying amounts in the commercial balance sheet and the tax balance sheet, insofar as these are expected to reverse with tax effect in later fiscal years. In addition, deferred tax assets are recognized on the existing corporate and trade tax loss carryforwards to the extent that a loss offset is expected within the next five years. Deferred tax assets and liabilities in accordance with Section 274 (1) HGB are reported gross for the tax group at the level of the company as the controlling company. Deferred taxes are measured using a combined income tax rate of around 32% (previous year: around 31%).

Other taxes

Other taxes are reported in the income statement under the item "Other operating expenses".

Activity statements/accounting pursuant to Section 6b (3) of the German Energy Industry Act (EnWG) and Section 3 (4) sentence 2 of the German Metering Point Operation Act (MsbG)

Fraport AG operates its own energy supply network and in mid-2011 applied for the status of "closed distribution network", which is associated with considerable benefits compared with general supply networks. In accordance with the requirements of Section 6b of the German Energy Industry Act (EnWG), Fraport AG is obliged to prepare separate activity statements. The regulations were applied in accordance with the requirements of the Federal Network Agency in the 2023 annual financial statements. Section 3 (4) sentence 2 of the German Metering Point Operation Act (MsbG) is generally applicable. The required separation of accounts was basically implemented by creating profit centers.

There were no unusual transactions in connection with energy supply activities that were not immaterial to the assets, liabilities, and financial performance of Fraport AG and that must be disclosed in accordance with Section 6b (2) EnWG.

Other disclosures

Fraport AG falls within the scope of the "OECD Model Rules" (global minimum taxation). Legislation on global minimum taxation has been enacted in Germany, the country in which Fraport AG, the ultimate parent company of the Fraport Group, is based, and will come into force for fiscal years beginning after December 30, 2023. After that, Fraport AG will be obliged to calculate the effective tax rate for each country in which it operates business units within the meaning of the legislation and, if the calculated effective tax rate is below the minimum tax rate of 15%, to pay a "supplementary tax" in the amount of the difference between the effective tax rate and the minimum tax rate.

As the legislation was not in force in any jurisdiction in which Fraport AG operates business units within the meaning of the legislation at the time of reporting, there is no associated tax burden in the reporting period.

Fraport AG is in the process of estimating the impact of global minimum taxation for the fiscal year 2024 (the first year of application of the legislation). At present, Fraport AG does not expect the first-time application of the regulations on global minimum taxation to have a significant impact on the Company's effective tax rate. Due to the complexity of the application of the legislation and the resulting extensive additional data requirements, it is possible that the actual impact may differ considerably from current esti- mates.