Fraport : Combined Management Report for fiscal year 2023

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

HR neo

HRneo is the largest development program in HR in recent years. It aims to realign the HR department and further increase Fraport´s attractiveness as an employer. Team spirit within the workforce is also to be strengthened across the Group through HRneo. The five sub-projects "Leadership, Culture, Image, Talent & Development", "Recruitment & Skills", ­"Remuneration & Benefits", "Processes & Systems" and "Organization, Efficiency & Realignment" deal with the relevanttopics also with the involvement of employees.

Following an initial analysis and concept phase, the medium-term program is currently in the implementation phase.

Combined Management Report for the

2023 Fiscal Year

Situation of the Group

Economic Report

Combined non-financial

Statement

115 Supplementary Management Report on the Separate Financial Statements of Fraport AG

1. Events after the Balance Sheet Date
2. Risk and Opportunities Report

132 Outlook Report

40

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Situation of the Group

Business Model

Fraport Group (hereinafter also referred to as: Fraport) is one of the world's leading companies in the airport business in terms of the number of passengers carried and metric tonnes of cargo handled. The main site of the Group is Frankfurt Airport, one of the most important passenger and cargo airports in the world, in respect of which the Group's parent company, Fraport AG Frankfurt Airport Services Worldwide (abbreviated: Fraport AG), has an operating permit with no time limit. Beyond the Frankfurt site, the Group operates on four continents, mainly on the basis of concession agreements at international airports. The main sites outside Frankfurt, which are designated as "investments in airport operating projects," include 14 airports in Greece, Lima Airport in Peru, and two airports in Brazil - Porto Alegre and Fortaleza, as well as Antalya Airport in Turkey (see also the "Key sites" chapter).

As an airport operator, Fraport provides a wide range of operational and administrative services for airport and terminal operations. Within the framework of the concession agreements, the scope of the services offered varies from contractually binding construction and expansion activities, administration and control of airport processes, to the management of retail areas. In addition to the services provided, the concession models differ in terms of their term and the structure of the concession fees to be paid. The Fraport Group also offers planning and consulting services as well as IT services and facility management. Fraport aims to ensure that customers are the focus of all its company services. This applies both at the home site in Frankfurt and at the international Group sites. Fraport considers itself to be a learning organization that uses its know-how in a targeted and profitable way worldwide.

The Group generates the majority of its revenue and earnings from the passenger and freight business at each of its sites. Apart from passengers, its main customers include airlines, tenants of office and retail space, authorities and freight forwarders. Fraport primarily levies charges for the use of the airport infrastructure, generates income from the development of commercial areas, and offers additional operational services. Fraport reports the main revenue streams resulting from this as "airport charges," "infrastructure charges," "ground services" and "security services," "retail," "real estate" and "parking." In the area of airport concessions, revenue from "construction and expansion services in accordance with IFRIC 12" are also reported. In its reporting, Fraport distinguishes between the following four segments:

• Aviation - holistic management of the terminal facilities and passenger processes at Frankfurt Airport.
• Retail & Real Estate - development and renting of space at the airport and in the area near the airport in Frankfurt. This primarily includes the retail business, building and space leasing as well as parking management.
• Ground Handling - ground services such as loading, baggage and passenger services as well as the operation of the central infrastructure and baggage transfer system at Frankfurt Airport.
• International Activities & Services - international marketing of the Group's expertise and airport operations as well as bundling central services in Frankfurt.

Fraport's business model creates value by participating in the international demand for air travel and flows of goods. Fraport is pursuing a clear growth strategy that also takes into consideration environmental and social concerns (see also the "Strategy" chapter). In addition to the broad portfolio of airport investments, which focuses on both business travel demand and local tourism offerings, the employees form the basis of the company's success. Together with its partners, Fraport is consistently developing the Group sites and achieving a broad revenue and earnings base.

41

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Value generation chain

•	Airport infrastructure	•	Connectivity	•	Airport infrastructure
•	Financial ressources
•	Mobility	•	Satisfied customers
•	Know-how
•	Growth driver for	•	Know-how & innovation
•	Human ressources
	the region	•	Profitability & dividends
•	Services and performance
• Airport as a workplace	•	Climate Protection
•	Environmental ressources
		Input	Output

Purchasing

Finance

Airport Security

Strategy

IT & Digitalization

Supporting functions

Value generation

Ads

Concessions

International

Real estate

for retail &

Terminal

Passenger &

Airside

Parking

Advertising

Security checks

airport management

management

food &

operations

freight handling

operations

& consulting

beverage

Governance and compliance

Infrastructure development

Facility management

Communications Human Ressources

External influences

The main external factors influencing the business model of Fraport include disruptive events, such as extreme weather conditions or pandemics, in addition to economic, (socio-)political, and regulatory factors. The influencing factors can both positively and negatively affect passenger and freight demand as well as the range of aircraft movements and passenger capacity at Group airports. At the same time, they can influence the purchasing behavior of passengers and thus the economic situation of the Fraport Group as a whole (see also the "Risk and Opportunities Report" chapter).

Economic growth and globalization generally favor the demand for air travel and freight transport. At the same time, economic prosperity and a globally growing middle class tend to lead to a higher number of air journeys. High inflation rates potentially reduce disposable income and can have a negative impact on business development. Exchange rates also affect the appeal of tourist destinations, travel and freight flows, and passengers' booking behavior as well as their buying behavior in the retail area. Exchange rates also play an important role in the financial contribution of individual foreign Group companies, whose functional currencies are converted into the currency of the Group, the euro.

Price fluctuations on commodity markets, especially for crude oil and therefore jet fuel, also have an influence on air traffic and can have both a positive and negative impact on air traffic demand.

Politics affect air traffic at the regional, national, and international levels. Operating restrictions, such as night flight bans and noise control measures, as well as travel restrictions and taxes, can have a negative impact on airline offerings. This may also affect passenger and cargo volume at the affected sites and may contribute to the development of other airports. Environmental policy in particular can affect air traffic. A further political influencing factor is the possible liberalization of air traffic rights. This

42

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

may result in the opening of new markets for air traffic or the expansion of already existing markets. By contrast, sanctions or tightly specified air traffic agreements lead to the closure of markets.

Geopolitical crises are leading to increasing global political and economic instability. They can influence air traffic development in many ways.

Fraport monitors various early warning indicators to identify trends in travel or freight flows at an early stage, and to derive appropriate countermeasures if necessary.

Structure

No material changes compared with the previous year

After FraSec Fraport Security Services GmbH, a wholly owned subsidiary of Fraport AG, transferred 26% of the shares in FraSec Aviation Security GmbH, formerly FraSec Luftsicherheit GmbH, to the Dr. Sasse Group in the 2022 fiscal year, FraSec Fraport Security Services GmbH transferred a further 25% of the capital shares as at January 1, 2023. As a result of the transfer, FraSec Fraport Security Services GmbH now holds 49% of the capital shares in FraSec Aviation Security GmbH, which has since been included as a joint venture in the Fraport Group.

As part of a transfer agreement, the German Federal Ministry of the Interior and Community (BMI) has transferred responsibility for the organization, financing, control and implementation of aviation security checks at Frankfurt Airport to Fraport AG effective January 1, 2023. Fraport also assumes responsibility for procuring security equipment at Frankfurt Airport and for calculating and levying aviation security charges from the airlines. In future, the aviation security checks will be carried out at the Frankfurt site by specialist personnel on behalf of Fraport AG, under the supervision of the German Federal Police.

In September 2023, the Supervisory Board of Fraport AG decided to extend the contract with Dr. Stefan Schulte, Chairman of the Executive Board of Fraport AG, for an additional three years until August 31, 2027 with effect as of September 1, 2024. In addition, the Supervisory Board extended the contract with Dr. Pierre Dominique Prümm, Member of the Executive Board and Executive Director Aviation and Infrastructure, for an additional five years until July 31, 2029 with effect as of August 1, 2024.

Beyond that, no fundamental changes were made to the legal and organizational Group structure in the 2023 fiscal year.

Legal structure of the Group

As the parent company of the Fraport Group, Fraport AG directly or indirectly holds the shares in the other Group companies and has its registered office in Frankfurt am Main. As at December 31, 2023 there were 56 consolidated companies excluding companies accounted for using the equity method, and 78 companies including companies accounted for using the equity method (in the previous year: 55 and 76 companies, respectively). For a detailed overview of the shareholdings within the Group, please see Group notes, note 57.

Organizational Group structure

As a management body, the Executive Board bears the strategic and operational responsibility for the Group. At the time of preparing the consolidated financial statements, the Executive Board consisted of the five members Dr. Stefan Schulte (Chair), Anke Giesen (Member of the Executive Board and Executive Director Retail & Real Estate), Julia Kranenberg (Labor Relations Director), Dr. Pierre Dominique Prümm (Member of the Executive Board and Executive Director Aviation and Infrastructure), and Prof. Matthias Zieschang (Member of the Executive Board and Executive Director Controlling and Finance).

For the purpose of managing the Group, the Executive Board has divided the business activities into four segments: "Aviation", "Retail & Real Estate", "Ground Handling", which are largely active at the Frankfurt site, as well as "International Activities & Services", which primarily includes the Group companies outside of Frankfurt. The segments encompass the strategic business units and service units of Fraport AG and include the Group companies involved in each of these business processes. The central units of Fraport AG in Frankfurt are responsible for Group-wide administrative services, among other things.

43

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

The Aviation segment mainly operates the land and airside infrastructure at the Frankfurt site. It therefore includes both the area of airport charges, which is legally regulated in Germany, and relevant security services. The regulated airport charges consist of passenger, landing, and takeoff fees, security fees, and parking fees. The Aviation segment

is responsible for ensuring safe, efficient, and customer-oriented processes in the flight operating areas and terminals as well as the implementation of airport and air safety tasks in compliance with legal requirements.

The Retail & Real Estate segment is responsible in particular for the commercial development of the Frankfurt site, including the retail activities as well as real estate and land. Its activities extend from the management of buildings and facilities through to the management and development of the parking and retail areas and the renting of advertising

space. In addition to the stationary business at Frankfurt Airport, the focus is, among other things, on greater use of online retail offers and sales channels.

The Ground Handling segment consists of loading, baggage, and passenger services, airmail and luggage transport, and freight handling at Frankfurt Airport. The segment is primarily responsible for the quality of Frankfurt Airport's role as a hub, characterized by transfer processes. The provision of the central infrastructure, in particular the baggage

transfer system, is also allocated to this segment.

The International Activities & Services segment includes in particular the acquisition, operation, development, and expansion of airports abroad. Consulting services, including in the "Operational Readiness and Airport Transfer" (ORAT) section, are additionally provided. The segment also includes Fraport AG service units that provide central services for

the Fraport Group.

As at December 31, 2023, the organizational structure of the Fraport Group was as follows:

A detailed description of the structure and operation of the management and control body is presented in the "Combined statement on corporate governance." The annually updated "Combined Statement on Corporate Governance" does not form part of the annual audit of the consolidated accounts by the auditor.

44

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Key sites

Significant Fraport Group airports

Site	Airport	Company	Share in %	Term	Concession charge
Germany	Frankfurt	Fraport AG Frankfurt Airport Services Worldwide	100	1924	no time limits	-
Slovenia	Ljubljana	Fraport Slovenija, d.o.o.	100	2014	no time limits	-
Brazil	Fortaleza	Fraport Brasil S.A. Aeroporto de Fortaleza	100	2017	20471)	Fixed minimum + revenue
Porto Alegre	Fraport Brasil S.A. Aeroporto de Porto Alegre	100	2017	20421)	component
Peru	Lima	Lima Airport Partners S.R.L.	80.01	2001	20411)	Fixed minimum+ revenue
component
		Fraport Regional Airports of Greece A S.A.	65	2017	2057
Greece	14 Airports	Fraport Regional Airports of Greece B S.A.	65	2017	2057	Fixed minimum + EBITDA
		(below collectively referred to as Fraport Greece2))	component
Bulgaria	Varna	Fraport Twin Star Airport Management AD	60	2006	2046	Fixed minimum + revenue
Burgas	60	2006	2046	component
Türkiye	Antalya	Fraport TAV Antalya Terminal İşletmeciliği A.Ş.	50/513)	1999	2051
(hereinafter: Group company Antalya)	Fixed amount

1. Extension option.
2. The Group company Fraport Regional Airports of Greece Management Company S.A. is included for financial reporting purposes.
3. Dividend share: 50%, share of voting rights: 51%; from 2027 Fraport TAV Antalya Yatirim, Yapim ve İşletme A.Ş., dividend share: 50%, share of voting rights: 49%.

In addition to the aforementioned airports, Fraport operates retail areas at different airports in the USA through its Group company Fraport USA.

Competitive position at the Frankfurt site

Frankfurt Airport competes with other airports both nationally and internationally. Regionally, there is competition for passengers and air freight with airports in the original catchment area. Internationally, Frankfurt Airport competes for domestic and international transfer passengers and transshipment freight on the basis of its function as an international transfer airport. The main customer at the Frankfurt site remains the Lufthansa Group, which maintained its share of more than 60% of passengers in Frankfurt in the 2023 fiscal year. The largest competitors for transfer passengers are primarily the hub airports London Heathrow, Paris Charles de Gaulle, Amsterdam Schiphol, Istanbul, and Munich, which are in particular influenced by the global route networks of their resident main customers British Airways, Air France-KLM, Turkish Airlines, and Lufthansa Group. Due to the dynamic development of many airlines and airports from the Middle East, the Frankfurt site is also in intercontinental competition with these airports.

In particular, the expansion and modernization programs contribute to maintaining and improving the international competitive position. For example, the northward relocation of the security checks in Terminal 1 should lead to a much improved transfer process. Terminal 3 ("Expansion South") should also ensure the long-term landside capacities required to give the site a successful future-oriented competitive edge. The construction of Terminal 3 with Piers H and J, the road infrastructure, and parking garage are already well advanced. The roof of the main terminal building, for example, is fully installed, and the façade work, including glazing, is largely complete. Numerous technical installations are running inside the terminal. Pier G of Terminal 3 has been completed except for the installations that are only required for the start of operations. The opening of the new terminal is planned for the start of summer flight schedule in 2026.

The ranking of the top 10 airports in Europe, which has changed due to the crisis, is slowly returning to the pre-crisis structure (ranking according to ACI Europe; as of: February 2023). With 48.9 million passengers, Frankfurt Airport ranked sixth among the leading airports in terms of passengers in the reporting year. The Group airport Antalya (31.2 million passengers) ranked tenth. In Germany, Frankfurt Airport was the largest passenger airport, ahead of Munich with 31.6 million passengers in the same period. Based on its air freight turnover of approximately 1.9 million metric tons, Frankfurt has remained Europe's leading airport in the same period, ahead of Paris Charles de Gaulle. In Germany, Leipzig/Halle Airport was the next largest competitor, with 1.5 million metric tons of freight.

45

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Competetive position in Europe

Rank1)	2023	2022	2019	Airport	Passengers	delta %	Rank1)	2023	2022	2019	Airport	Air freight	delta %
	1.	2.	1.	LHR - London	79,183,190	28.5		1.	1.	1.	FRA - Frankfurt	1,828,091	-5.0
	2.	1.	5.	IST - Istanbul	75,899,236	18.1		2.	2.	2.	CDG - Paris	1,814,952	-1.8
	3.	3.	2.	CDG - Paris	67,424,082	17.3		3.	5.	5.	IST - Istanbul	1,516,396	6.3
	4.	4.	3.	AMS - Amsterdam	61,889,586	17.9		4.	6.	3.	LHR - London	1,387,059	2.7
	5.	5.	6.	MAD - Madrid	60,181,604	18.9		5.	4.	4.	AMS - Amsterdam	1,378,041	-4.2
	6.	6.	4.	FRA - Frankfurt	59,355,389	21.3		6.	10.	11.	MXP - Milan	665,655	-7.0
	7.	7.	7.	BCN - Barcelona	49,883,928	19.9		7.	12.	10.	MAD - Madrid	643,534	13.6
	8.	8.	10.	LGW - London	40,902,076	24.5		8.	11.	12.	BRU - Brussels	579,549	-5.9
	9.	12.	11.	FCO - Rome	40,494,654	38.0		9.	16.	15.	MUC - Munich	277,200	7.1
	10.	11.	13.	SAW - Istanbul	37,097,582	20.5		10.	15.	16.	ZRH - Zurich	268,164	-0.1

1. Ranking according to ACI Europe (February 2024).

Competitive Position Outside the Frankfurt Site

• Operator concessions  Retail concessions  Logistics center  Engagement put on hold

The competitive positions of the major airports in the Fraport Group are presented below.

As the airport of the country's capital, the development of Ljubljana Airport is closely linked to the economic and tourist situation in Slovenia. As an originating airport, Ljubljana is in particular in competition with airports in its catchment area, such as Zagreb Airport near the border. Compared to the previous year, the airport recorded a clear recovery in traffic. This is mainly due to improved connectivity and the resumption of flight connections that were temporarily suspended due to the bankruptcy of Adria Airways in the fall of 2019 and the impact of the coronavirus pandemic. Alongside a large number of connections to European capitals and business sites, an increasing number of charter flight connections to tourist regions continued to contribute to the appeal of the site and the airport.

46

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Passenger numbers at the two Brazilian airports Porto Alegre and Fortaleza are strongly influenced by domestic originating traffic. The share of domestic passenger numbers was around 95% in both Fortaleza and Porto Alegre. The three major airlines LATAM Brazil, GOL and Azul continue to dominate the Brazilian market and accordingly offer numerous connections from Porto Alegre and Fortaleza. Porto Alegre benefits from its geographical proximity to the economic center of Brazil. Fortaleza Airport is highly tourist-oriented and is conveniently located for flights to Europe and North America. However, during the year the airport was affected by the weak development of the economy and a decline in tourist numbers. In addition, GOL has moved part of its fleet to other Brazilian sites. Freight volumes at both airports developed positively.

The Jorge Chávez Airport in Lima is Peru's leading airport, and one of the largest airports in South America. The site profits from its geographical position, which makes the airport an attractive transfer point for traffic between South and North America. LATAM Airlines Group has the largest share of aircraft movements and passengers at Lima Airport. The largest low-cost airlines at the site, SKY Airline and Jetsmart, continue to pursue a growth strategy and contribute to positive traffic growth. The expansion project at the Jorge Chávez Airport includes the construction of a new passenger terminal, a new runway, including aprons and taxiways, as well as other peripheral infrastructure. This will ensure that sufficient capacity is available for further growth in the South American aviation market in the future. The second runway and the air traffic control tower started operations in April 2023. The construction of the new passenger terminal continues to progress. It is scheduled to open at the end of 2024.

The traffic and business developments at the strongly tourist-oriented Greek sites, at Varna and Burgas, as well as in Antalya are substantially affected by charter traffic of tourist carriers. There is generally no substantial concentration of individual airlines. In addition to the economic development in each respective country where the traffic originates, the sites depend particularly on the appeal of the respective regions with regard to safety, quality, price level, and entry requirements.

Fraport Greece operates 14 Greek regional airports. These are the airports in Kerkyra (Corfu), Chania (Crete), Kefalonia, Kavala, Aktio/Preveza, Thessaloniki, Zakynthos, Mykonos, Skiathos, Santorini (Thira), Kos, Mytilene (Lesbos), Rhodes, and Samos. The development at the Greek Group airports is mainly characterized by tourist traffic. Greece's appeal as a tourism destination and the associated potential for a further increase in demand should continue in the coming years. Despite isolated natural events, such as the forest fires on Rhodes and Corfu, traffic figures continued to increase and reached a new peak in 2023.

The Black Sea airports in Burgas and Varna are the second- and third-largest passenger airports in Bulgaria after Sofia. The flight schedule included 64 destinations in Varna and 75 destinations in Burgas in 2023. In addition to charter services, low-cost transport promises further growth potential. Wizz Air provided the largest share of passengers by far, at around 26%. In 2023, the airline stationed three aircraft in Varna, two since October 2023. The modular expansion of the terminals at both sites offer sufficient capacity to be able to meet the regional growth expected in the medium term.

Antalya was the second-largest passenger airport in Turkey in the past fiscal year, behind Istanbul Airport, and remains one of the most important tourist airports in the Mediterranean region. The demand for holiday travel to the region is essential for the further development of traffic at Antalya Airport. This depends on the political and economic situation in the countries of origin of the main passenger groups as well as Turkey. At the end of 2021, a consortium made up of Fraport and its Turkish partner TAV was awarded the tender for the new operating concession at Antalya Airport. The operational period of the new concession will start at the beginning of 2027 after the current concession expires, and will run until the end of 2051. As part of the new concession, necessary expansion measures at the terminals and other areas at the airport began in the first quarter of 2022. The completion of the main infrastructure measures is expected until January 2025. This will ensure Antalya Airport will remain highly competitive in the segment of tourist airports in the Mediterranean region in the long term.

Additional information about business development in the past fiscal year can be found in the "Economic Report" chapter.

47

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Strategy

Long-term market development remains positive despite short-term volatility

Following the worldwide traffic decline caused by the coronavirus pandemic, the volume of traffic is recovering globally. In the long term, stable growth of the aviation market is expected to continue. Fraport aligns its strategy to the long-term forecasted development of the global aviation market and its trends. In particular, projected global economic growth and stable world trade will have a positive impact on the development. The world's growing population, combined with the expanding middle class, which tends to consume more, are the main factors driving tourism demand. Disproportionate growth is still expected from and in the economic emerging markets.

Long-term market development

Global economic performance

Growing world population

Growing global gross domestic product and increasing global trade

will promote the development of air traffic

Globalization and a pronounced trend towards private travel

are contributing positively to this development

Forecast for the long-term development of global air traffic underpins growth prospects

Source	Term	Reference	Average annual growth
Airbus	2019 - 2042	Passenger kilometers sold	+ 3.6%
Boeing	2019 - 2042	Passenger kilometers sold	+ 3.7%
Embraer	2019 - 2042	Passenger kilometers sold	+ 3.2%
ACI	2019 - 2041	Number of passengers	+ 3.5%

48

Fraport Annual Report 2023

To Our Shareholders

Combined Management Report

Consolidated Financials Statements

Group Notes

Further Information

Strategic objectives

The vision of the Fraport Group, with its five strategic objectives, serves to implement the mission and remains unchanged despite short-term volatility:

A description as well as target values and time horizons for the most important financial and important non-financial key figures can be found in the "Control system" chapter, and the development during the past fiscal year can be found in the "Economic Report" chapter. The forecast values for the key financial performance indicators for the 2024 fiscal year are included in the "Outlook Report" chapter. Substantial risks and opportunities can be found in the "Risk and Opportunities Report" chapter.

Growth in Frankfurt and internationally

The expected market development indicates that air traffic will remain a growth market. Against this background, Fraport is aligning the company to ensure competitiveness and to participate sustainably in this growth - both at the Frankfurt site and internationally.

Based on this, it is expected that traffic volume at Group airports will follow the general market trend, the aviation value added will increase, and sustainable EBITDA growth will be achieved in the non-aviation segment. The international business is also expected to continue to grow and contribute to the Group EBITDA and result.

At the Frankfurt site, the construction of Terminal 3 will secure the infrastructure required for growth in the long term. Construction is progressing according to plan, and the new terminal will open for the 2026 summer flight schedule. The resulting additional capacity of around 20 million passengers will make it possible to gradually modernize older terminal infrastructure. In particular, Terminal 2 will be temporarily closed and modernized.

The role of Frankfurt Airport as one of the leading cargo hubs in Europe will also be strengthened, and freight will be developed as a business field. Infrastructural expansion areas at Frankfurt Airport, the e-commerce segment, and the forecasted overall economic upswing are expected to contribute to growth in freight in the coming years.

49