Guidance for Financial Analysts to model the impact of aircraft noise on Flughafen Zürich AG s financial statements

Transcription

1 Guidance fr Financial Analysts t mdel the impact f aircraft nise n Flughafen Zürich AG s financial statements Zurich Airprt, March 17, 2015 Intrductin The bjective f this dcument is t explain the impact f aircraft nise n the accunts f Flughafen Zürich AG. In the area f frmal exprpriatins, the Swiss Federal Supreme Curt rulings n fundamental issues in the first half f 2008 enabled Flughafen Zürich AG t reliably estimate the ttal cst fr frmal exprpriatin cmpensatin fr the first time, despite remaining uncertainties regarding the accuracy f this estimate. On the basis f the fundamental issues decided by the Swiss Federal Supreme Curt, the nise related csts that were reliably estimable ( base case ) as at June 30, 2008 ttaled CHF millin (including frmal exprpriatins, csts fr sund insulatin and resident prtectin and all related perating csts) fr new and ld nise-related liabilities. New nise-related liabilities refer t thse arising since Flughafen Zürich AG is the hlder f the cncessin f Zurich Airprt, i.e. since The nise-related liabilities arising frm previus perids, when the Cantn f Zurich was the hlder f the cncessin, are called ld nise-related liabilities. The Cantn f Zurich assumed the pre-financing fr these nise-related until Nvember 30, With the release f the full year 2010 results (annual reprt 2010) the expected ttal nise-related csts were updated as a result f a Swiss Federal Curt decisin frm June 2010 n the freseeability f east appraches. The ttal expected mst likely nise-related csts culd be reduced frm CHF millin t CHF millin. Hwever, the prtin t be brne by Flughafen Zürich AG increased because f a higher share f new nise-related liabilities. The ttal expected mst likely nise-related csts were adjusted again with the release f the full year 2011 results (annual reprt 2011) in rder t reflect a Swiss Federal Curt decisin frm December 2011 n the methdlgy f hw t calculate the indemnificatins fr reduced value f yield prperties. As a result, the ttal expected mst likely nise-related csts were slightly adjusted upwards frm CHF millin t CHF millin. The prtin t be brne by Flughafen Zürich AG increased again t 76%. As per Nvember 30, 2014 the pre-financing f nise liabilities by the Cantn f Zürich became bslete. Flughafen Zürich AG has assumed the still unpaid ld nise-related liabilities in the amunt f CHF millin and in return has received back the Cantn f Zurich s crrespnding share f the assets frm the Airprt f Zurich Nise Fund (AZNF) in the amunt f CHF millin ( reversal f pre-financing thrugh the Cantn f Zurich hereinafter called reversal ). As per Nvember 30, 2014, the splitting f nise charges is als n lnger applicable. Flughafen Zürich AG P.O. Bx, CH-8058 Zurich-Airprt

2 Financial impact f reversal The reversal increased the assets and liabilities f Flughafen Zurich AG by CHF millin each: Increase f the Airprt Zurich Nise Fund (cash and cash equivalents, current assets, nncurrent financial assets) in the amunt f CHF millin. Increase f prvisin fr frmal exprpriatins (current prvisin, nn-current prvisin) in the amunt f CHF millin. Reductin f the intangible asset frm right f frmal exprpriatin f CHF millin. The reversal itself had n direct impact n the 2014 incme statement. But as a result f the ablishment f the split between new and ld nise-related liabilities, the incme statement and the balance sheet f Flughafen Zürich AG will be affected differently ging frward. Regulatins f the Airprt f Zurich Nise Fund In additin t this guidance, we als recmmend reading the regulatins f the Airprt f Zurich Nise Fund: 2

3 Definitins Nise-related csts Csts fr frmal exprpriatin Csts fr measures regarding sund insulatin and resident prtectin Operating csts in regard f aircraft nise A list f all cst cmpnents, split in mre detail, is additinally available in the regulatins f the Airprt f Zurich Nise Fund. Nise-related charges Daytime nise charge as an additin t the landing charge Night-time nise charge (fr take-ffs and landings between 09:00 p.m. and 07:00 a.m.) The nise-related passenger charge was suspended as per February 1, Befre, CHF 5.- per departing passenger were levied as nise-related passenger charge. All nise-related charges are fully and explicitly dedicated fr nise-related csts. Once the frmal exprpriatin and sund insulatin and resident prtectin payments have been settled cmpletely, the bjective is t have a zer balance in the AZNF. Therefre, the level f the nise-related charges will be adjusted accrdingly within the existing rules. Split f revenues Starting as per December 1, 2014, all nise-related charges are recrded as revenue within the financial statements f Flughafen Zürich AG. Histrical Split: Up t June 30, 2008: 100% FZAG After July 1, 2008: 53% FZAG; 47% Cantn f Zurich After January 1, 2011, 72% FZAG, 28% Cantn f Zurich Between January 1, 2012 and Nvember 30, 2014, 76% FZAG, 24% Cantn f Zurich Airprt f Zurich Nise Fund (AZNF) The AZNF is a liquidity-based fund that des nt take the frm f any type f legal entity. The statement f the fund presents the accumulated surplus r shrtfall as f balance sheet date arising frm nise-related charges, less expenses fr frmal exprpriatins, sund insulatin and resident prtectin as well as perating csts. 3

4 Impacts f nise-related revenues and csts n the incme statement Nise-related revenues and csts frm an integral part f the cmpany's verall financial statements. All nise-related revenues and csts are fully recgnized within the incme statement f Flughafen Zürich AG. Incme statements f a single year were shwing higher revenues than csts until the year Thus "nise" had a psitive impact n net incme f Flughafen Zürich AG. Because f the suspensin f the nise-related passenger charge as f February 1, 2014, the impact was negative in 2014 and culd als be negative ging frward. Whilst a single year can be "distrted" as explained abve, ver the entire perid until all nise-related csts are settled, impact n incme statement as well as n cash flw will be neutral. Revenue impact The nise-related passenger charge has been suspended as per February 1, As per May 1, 2013 the mdel fr nise-related landing charges was adpted t ensure the underlying incentive mechanism fr less nisy aircrafts. Incme frm nise-related landing charges will be in a lw duble digit millin amunt ging frward; higher charges due t mre traffic might be ffset by reductins due t less nisy aircrafts and lwer MTOW s. Shuld the nise-related charges change in the future, revenue frm nise wuld change as well. Operating cst impact Operating csts are already tday and will als in the future be included in varius cst items f the P&L such as fr example cst f persnnel, maintenance r general administratin f the nise department. Therefre they d nt have t be prjected separately. Histrical impact: 2008: CHF 4.3 millin 2009: CHF 4.7 millin 2010: CHF 4.3 millin 2011: CHF 4.3 millin 2012: CHF 3.8 millin 2013: CHF 3.9 millin 2014: CHF 3.9 millin The reversal as per Nvember 30, 2014 has n impact n perating csts ging frward. Imprtant: cst fr frmal exprpriatin payments and fr sund insulatin and resident prtectin are nt recrded in the incme statement when payment is made, but are reducing the separate prvisin (see als impact n balance sheet belw). 4

5 Amrtizatin impact As a result f having recrded an intangible asset in the balance sheet starting June 30, 2008, FZAG will have t amrtize this asset n a straight-line basis until the end f the cncessin, i.e. until May Histrical impact: 2009: CHF 5.6 millin 2011: CHF 7.0 millin 2012: CHF 7.7 millin 2013: CHF 7.7 millin 2014: CHF 7.5 millin As a result f the reversal as per Nvember 30, 2014 the amrtizatin impact ging frward will be lwer (apprx. CHF 4.5 millin) than in the years befre because f the lwer intangible asset fr frmal exprpriatin. Financial expenses impact The unwinding f the discunts f bth prvisins (prvisin fr sund insulatin and resident prtectin as well as the prvisin fr frmal exprpriatins) happens thrugh the line item financial expenses (nn-cash effective). The future amunts fr unwinding depends a) n hw the cash ut fr frmal exprpriatin payments and sund insulatin and resident prtectin arises and b) n the level f the discunt rate as required by IAS 37. Histrical impact: 2008: CHF 5.1 millin (cst) 2009: CHF 7.8 millin (cst) 2010: CHF 8.6 millin (cst) 2011: CHF 13.4 millin (cst) 2012: CHF 25.8 millin (cst) 2013: CHF -6.2 millin (incme) 2014: CHF 7.7 millin (cst) The increase in 2012 was mainly driven by a significant reductin f the respective discunt rate. Due t an increase f the discunt rate tgether with a reassessment f the timing f respective cash utflws, an incme f CHF 6.2 millin resulted in Lsses n financial assets f Airprt Zurich Nise Fund are als included in the financial expenses (2014: CHF 1.7 millin). 5

6 Financial incme impact Interest incme n financial assets f Airprt f Zurich Nise Fund is recrded as financial incme. Histrical impact: 2008: CHF 6.1 millin 2009: CHF 3.4 millin 2010: CHF 3.5 millin 2011: CHF 3.3 millin 2012: CHF 4.6 millin 2013: CHF 5.3 millin 2014: CHF 3.8 millin Gains n financial assets f Airprt Zurich Nise Fund are als included in the Financial Incme. Tax impact The expected incme tax rate f Zurich Airprt can in principle be applied als fr nise-related revenue and cst prjectins. The nte n deferred taxes (refer t page 100 f the Annual Reprt 2014) shws the exact amunt f deferred tax expense as a result f nise. 6

7 Impacts f nise-related assets and liabilities n the balance sheet Assets and liabilities related t nise are included mainly in the fllwing balance sheet line items: Current and nn-current financial assets (Airprt f Zurich Nise Fund) Intangible asset frm right f frmal exprpriatin Prvisin fr sund insulatin and resident prtectin Prvisin fr frmal exprpriatin Intangible asset frm right f frmal exprpriatin The intangible asset frm right f frmal exprpriatin will be further amrtized n a straight-line basis until the end f the cncessin, i.e. until Amrtizatin started n July 1, Histrical value: 2008: CHF millin 2009: CHF millin 2010: CHF millin 2011: CHF millin 2012: CHF millin 2013: CHF millin 2014: CHF millin Prvisin fr sund insulatin and resident prtectin & prvisin fr frmal exprpriatin Payments fr sund insulatin and resident prtectin as well as payments fr frmal exprpriatin decrease the prvisin. Accrding t IFRS, the prvisins are recrded at a discunted value and had t be unwund with a discunt rate n an annual base. The discunt rate has reduced in 2010 t 3.5% (frm 4%), in 2011 t 2.5% and in 2012 t 1.2%. In 2013 the discunt rate has increased t 1.5% and has reduced again in 2014 t 1.1% Histrical value fr prvisin fr sund insulatin and resident prtectin: Histrical value fr prvisin fr frmal exprpriatin: 2008: CHF millin 2009: CHF millin 2010: CHF millin 2011: CHF millin 2012: CHF 86.3 millin 2013: CHF 65.7 millin 2014: CHF 46.1 millin 2008: CHF millin 2009: CHF millin 2010: CHF millin 2011: CHF millin 2012: CHF millin 2013: CHF millin 2014: CHF millin 7

8 Disclaimer The infrmatin cntained in this dcument has nt been independently verified. N representatin r warranty whether express r implied is made as t, and n reliance shuld be placed n, the fairness, accuracy, cmpleteness r crrectness f the infrmatin r pinins cntained therein. Neither the Cmpany, nr advisrs r representatives shall have any liability whatsever (in negligence r therwise) fr any lss arising frm any use f this dcument r its cntent r therwise arising in cnnectin with this dcument. This dcument des nt cnstitute an ffer r invitatin t purchase r subscribe fr any shares and neither this dcument nr any part f it shall frm the basis f, r be relied upn in cnnectin with, any cntract r cmmitment whatsever. This dcument cntains frward-lking statements that are based n current estimates and assumptins made by the management f Flughafen Zürich AG t the best f its knwledge. Such frward-lking statements are subject t risks and uncertainties, the nn-ccurrence r ccurrence f which culd cause the actual results including the financial cnditin and prfitability f Flughafen Zürich AG t differ materially frm r be mre negative than thse expressed r implied by such frward-lking statements. This als applies t the frward-lking estimates and frecasts derived frm third-party studies. Cnsequently, neither the Cmpany nr its management can give any assurance regarding the future accuracy f the pinins set frth in this dcument r the actual ccurrence f the predicted develpments. By accepting this dcument, yu agree with freging. 8