VIII. Financial risk management

The risk management system of Munich Airport, along with the main risks, is explained in detail in Section 4.2 of the Group Management Report of December 31, 2025.

In the course of its business activities, Munich Airport is exposed to a wide range of financial risks. They include credit, liquidity and market risks arising from interest rate and exchange rate fluctuations.

Munich Airport was also exposed to these risks in the prior year in comparable composition.

Monitoring and controlling financial risks are the responsibility of central financial and cash management. As part of the early risk detection system, all material financial risks are reported to the Executive Board on a quarterly basis. The Executive Board is in­formed of liquidity and loan developments and the development of the derivatives portfolio by means of a monthly financial report.

Derivatives are used exclusively for hedging purposes. Business transactions are concluded by central financial and cash manage­ment. Central finance and cash manage­ment uses a treasury system to document, process and control risks arising from the derivatives portfolio. The software ensures a strict segregation of the functions between acquisition, settlement and accounting of derivatives and the monitoring of risks arising from these transactions.

The methods of financial risk management have not changed in com­parison with the prior year.

1. Market risk Summary

Munich Airport is exposed to market risks arising from interest rate and exchange rate fluctuations. These risks have an impact on the amount of payment obligations from floating-rate loan agreements. To a lesser extent, foreign currency risks affect cash flows from the international consultancy business.

Munich Airport counters market risks by entering into derivative financial instruments. Derivatives are acquired solely for hedging purposes and are mainly used to hedge fluctuations in cash flows.

a) Interest rate risk

The interest rate risk of Munich Airport arises from long-term floating-rate loans. Munich Airport uses interest rate swaps to hedge cash flows against interest rate fluctuations. Disclosures on hedge rela­tion­ships can be found in Section VII.16.

Sensitivity analyses are used to show Munich Airport’s remaining risk exposure to interest rate fluctuations.

The analysis of sensitivity to fluctuations in interest rates shows the effects of an increase or decrease in total comprehensive income, profit or loss for the year and other comprehensive income in the event of a parallel shift of the yield curve by plus 100 basis points (BP) or minus 100 basis points (BP).

It is based on the following assumptions:

• The current interest expense from financial instruments with fixed-interest periods of more than one year, which are measured at amortized cost, remains unchanged. This applies regardless of when the next interest rate is fixed.

• Effects of changes in the yield curves on the reporting date value of financial instruments measured at amortized cost with fixed-inter­est periods of more than one year are not taken into consideration.

• Current interest expense from financial instruments measured at amortized cost with fixed-interest periods of less than one year, for example when tied at 3M-EURIBOR or 6M-EURIBOR, changes. This applies irrespective of whether or not these instruments were included in a hedge relationship as hedged items. The reporting date value of these finan­cial instruments does not change.

• Current interest expenses from interest-bearing derivative finan­cial instruments (e.g. 3M-EURIBOR or 6M-EURIBOR), will change. This applies regardless of whether such instruments were included in a hedge relationship as a hedge or not.

• The reporting date value of derivative financial instruments changes. Secondary effects from the parallel shift in the yield curve such as the change in forward exchange rates are not taken into account when determining interest rate sensitivity.

• Where derivative financial instruments have been designated as a hedging instrument in a cash flow hedge, the ineffective portion of the changes in value affects the profit/loss for the year. The ef­fec­tive portion of the changes in value has an effect on other compre­hensive income.

Under the aforementioned assumptions and restrictions, a parallel shift in the yield curve will decrease or increase total comprehensive income, profit or loss, and other comprehensive income as follows:

The sensitivity analysis uses the same assumptions and methods as in the previous year.

b) Foreign currency risk

Foreign currency risks result for the most part from operative acti­vities in foreign currencies. Fluctuations in cash flows arising from exchange rate fluctuations are eliminated through foreign exchange transactions. This results in risks from fluctuations of the euro against the US dollar (USD). Disclosures on hedge relationships can be found in Section VII.16. For reasons of materiality, no currency sensitivity analysis is performed.

2. Credit risk Summary

The credit risk is the risk of a financial loss, insofar as a debtor can­not fulfill its contractual obligations with respect to the financial instrument. Munich Airport’s credit risk primarily results from trade receivables and short-term deposits.

The gross carrying amount of financial assets represents the gross exposure to the credit risk; it thus represents the maximum default risk and is described in further detail in the relevant sections on the financial assets. As a result, Munich Airport is exposed to a maximum credit risk of TEUR 171,657 (December 31, 2024: TEUR 193,318) irrespective of any existing collateral.

The default risk for short-term deposits is countered by ensuring these are only held by credit institutions that have deposit protection.

The credit risk of receivables is analyzed and managed by a central responsible body (receivables management). Potential bad debt risks are countered by the timely and correct invoicing of the sub­jects of performance by means of monitoring and the enforcement of punctual and complete settlement of the resulting receivables. This includes the comprehensive credit assessment of customers, constant monitoring of open items, and a stringent dunning process. Lease payments are secured through rental deposits and guarantees. Handling services are rendered against deposit of cash collateral and bank guarantees.

Sales of goods and food services are mainly made against cash or by credit card payment.

Identifiable default risks of individual financial assets are accounted for by the corresponding (individual) impairment in accordance with the regulations for determining expected credit losses in the context of impaired financial assets (Stage 3).

A concentration of credit risks arising from business relations with individual debtors or groups of debtors is basically not apparent.

3. Liquidity risk Summary

The liquidity risk describes the risk that Munich Airport may not be able to meet its financial obligations in the future, such as repaying financial liabilities or settling financial liabilities as they fall due. Controlling and monitoring liquidity risk is the responsibility of Munich Airport’s central finance and cash management. The liquidity risk is monitored in the context of long-term business planning as well as short- and medium-term financial planning. In order to ensure solvency at all times, long-term credit lines and liquid funds are made available based on a rolling liquidity plan. In addition, liquidity is currently monitored via a separate liquidity management system.

Group-wide cash management concentrates the cash and cash equiv­a­lents of the operating subsidiaries. In addition to access to the op­erating cash surplus, Munich Airport maintains adequate liquidity in the form of short-term deposits and sufficient credit lines with banks. Cash flow from operating activities amounted to TEUR 383,719 in the reporting year (2024: TEUR 419,679). Munich Airport is able to access unutilized credit lines, including current account facilities and guaranteed credit lines, totaling TEUR 305,855 (December 31, 2024: TEUR 318,716).

The following table shows the contractually agreed interest payments and redemption payments for the non-derivative and derivative fi­nan­cial liabilities:

Redemption of non-derivative financial liabilities from interests in par­tnerships is shown at the expected settlement amount. The due date here is the earliest possible termination date of the shareholders.

The following tables show the lease payments and the carrying amounts of current and non-current lease liabilities: